Fintech Research
Anyone currently covering/covered fintechs before? I know growth has slowed but thoughts on the sector overall? Are fintechs valued like other banks/insurance co or like traditional software companies? Thanks
Anyone currently covering/covered fintechs before? I know growth has slowed but thoughts on the sector overall? Are fintechs valued like other banks/insurance co or like traditional software companies? Thanks
Career Resources
Most fintechs want to be valued like software or payments companies. So the goal is to have recurring revenue or take rate revenue models (or both). Saw extremely high multiples in 2021 like well over 20x revenue. Look at the performance of recently public fintech companies, though. Getting completely battered and some are off 60-90% from IPO price. (E.g., Hippo, an insurtech)
Multiple compression in private markets has lagged but every fintech startup internally knows they'd raise flat or down in this environment. Seeing much more aggressive stipulations on term sheets like higher liquidation preference, participation, cumulative dividends etc. You’re going to see the effects of a 2023 round on these cap tables for years.
I would bet two things.
Aut nesciunt qui architecto ut et voluptatem. Dignissimos et architecto tempore fugit. Sed nemo non sint molestiae sed autem. Debitis et nobis omnis natus dolorum porro. Recusandae quas est quidem sed consequatur incidunt culpa ad.
Placeat modi aut molestiae molestias. Culpa minima esse eveniet. Error harum perferendis aspernatur laboriosam sunt eius. A eveniet voluptates itaque. Necessitatibus est natus expedita. Omnis facere in quo exercitationem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...