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Michael Pearson

What has happened to seed investment in fintech during the pandemic?

Some sources, such as CB Insights, are reporting that venture capital investment in fintech has remained robust during the pandemic. After an initial dip in the second quarter of 2020, funding levels ...

18 Jan 2021
Fintech
Michael Pearson

What Funding Circle Tells Us About Fintech Valuations

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 c...

22 Jul 2019
Fintech
Michael Pearson

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

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 f...

10 Dec 2018
Fintech
Michael Pearson

Some Insights on Fintech Financing and Performance

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 c...

26 Jul 2018
Fintech
Michael Pearson

The Profitability Challenge for Fintech Startups

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 s...

27 Jun 2017
Fintech innovation and startups
Michael Pearson

The Impact of M-PESA on Bank Performance in Kenya

M-PESA in Kenya is widely regarded as an outstanding success in mobile money. The service has around 17m active customers and in 2016 generated about $400m in revenue for Safaricom, its parent company...

18 Apr 2017
Financial Inclusion
Michael Pearson

Assessing the Value Created by Fintech Investment

The amount of investment in venture capital backed fintech companies is well documented but how much value is being created and how does that relate to the value of established financial services comp...

14 Mar 2017
Fintech innovation and startups
Michael Pearson

Innovative Start-Ups: A Comparison of Metro Bank and Funding Circle

If you were investing in a new financial services business in 2010, would you have chosen to invest in a multichannel bank or a disruptive fintech? Metro Bank and Funding Circle from the UK provide us...

28 Feb 2017
Fintech innovation and startups

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