Fintech

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

18 Jan 2021

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 recovered quite rapidly with some large, later stage funding rounds driving the market. However, first round investment for companies trying to get s...

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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 ...

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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...

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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-...