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Location
LONDON
Member since
2006
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Michael's blog archive

2019 (1) 2018 (2) 2017 (4)
Michael Pearson

Michael Pearson

Founder at Clarus Investments
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Bio Michael Pearson is an experienced director, investor and consultant currently advising start-ups, investors and established companies in developed and developing markets on strategy, innovation and all aspects of corporate development. Career History Michael Pearson is the founder of Clarus Investments and is a non-executive director of Egyptian microfinance company Tanmeyah. He has worked for LEK Consulting and Lloyds TSB Group, and authored numerous reports on strategy, innovation and best practices for global banking association Efma.

Blogs

Fintech

What Funding Circle Tells Us About Fintech Valuations

22 Jul 2019

Funding Circle achieved an IPO in September 2018, raising £300 million and valuing the company at £1.5 billion. Since then the share price has fallen by 72 percent (as of 22nd July 2019). The market capitalisation of the company is now less than the total equity that has been invested in the business since inception in 2010. An interesting aspect ...

1

Fintech

Fintech Valuations Show that Investors Can Tolerate Weak Financial Performance, For Now

10 Dec 2018

The valuation of fintech startups remains relatively high even though financial performance for most is very weak. Investors are currently supporting the higher valuations because of expectations of future performance, but the lack of profitability and in some cases very low revenues (given the investments made) cannot continue indefinitely. There...

1

Fintech

Some Insights on Fintech Financing and Performance

26 Jul 2018

My updated research on fintech financing and performance shows that valuation growth for most of the start-ups in the sector is still very strong (on paper) but that revenue growth and profitability continue to be a challenge, even for the companies which have been operating for more than 5 years. The analysis is based on a sample of 39 privately-...

Fintech innovation and startups

The Profitability Challenge for Fintech Startups

27 Jun 2017

The evidence from a sample of 20 fintech startups in the UK is that there are substantial profitability challenges that still need to be overcome. As of June 2017, the total equity investment in the sample companies I have looked at has been £852m. The total valuation of the sample at the last valuation round for each company was £2.6bn, but none ...