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Flailing Fintechs 💸

Flailing Fintechs 💸
July 20, 2022

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A recent analysis by the Financial Times reveals that recently-listed fintech companies have dropped an average of 50% this year, compared to a 29% drop in the Nasdaq Composite. This result is a complete reversal of last year’s earnings during the second quarter of 2021, which saw annual revenue growth of 1000%. All said, about $460BN has disappeared from fintech company valuations at their peaks.


Bad attention
When the SEC is looking into the legality of your revenue stream, confidence plummets. No one knows about this idea more acutely than Robinhood. The company's no-commission trading platform is getting the side-eye from the SEC about whether passing on the trading costs to the retail brokers is a fair practice. The Securities and Exchange Commission will propose new rules in the fall, after a $70MM slap on the wrist for outages related to the Gamestop fiasco of 2020. Webull is another app brokerage closely watching for new regulations in the industry.

 

The BNPL Struggle
Rising interest rates have put the business models of buy-now, pay-later companies at risk. BNPL has risen in popularity for primarily younger consumers who enjoy the zero interest payment plans for purchases in the here and now. Klarna, the Swedish BNPL player, has seen its private valuation plummet from an all-time high of $45.6BN down to a piddly $6.7BN in its latest funding round

 

On the flip side of a “what goes up, must come down” storyline, investors are still confident in fintech. Fairplay, an algorithmic decision-maker for financial institutions, just raised a $10MM Round A. Pebble Finance has built a customizable ETF solution for amateur investors. It raised a $5MM seed round last week.

 

For more fintech-related fundings, search the keyword on our platform.

All Eyes on Netflix
Netflix is expecting an end to user drop off.
[Reuters]
Bad Profits for Big Banks
Party is over for big bank's bottom lines.
[Axios]

 
Since last week, PrivCo has added:
1,404 Companies | 192 Funding Activities | 156 M&A Deals

Funding & Deal Highlights:
 

X1 Card raises $25MM from FPV Ventures

Credit Cards • Round B • San Francisco, CA
 

Casavo Management raises €100MM from Exor

Real Estate • Round D • Milan, Italy
 

AppViewX raises $20MM from Brighton Park

Cyber Security • Round B • New York, NY
 

Flip.shop raises $60MM from WestCap

E-Commerce • Round B • Inglewood, CA
 

ForSight Robotics raises $55MM from Adani

Robotics • Round A • Yokne'am Illit, Israel
 

HireArt raises $26.3MM from Three Fish

API • Round B • New York, NY
 

Retia Medical raises $15MM from Fresenius

Healthcare • Round B • Valhalla, NY
 

Gordian Software raises $25MM from Accomplice

E-Commerce • Series A • Seattle, WA
 

Persephone Biosciences raises $15MM

Biotechnology • Seed • San Diego, CA
 

Koffie Insurance raises $11MM from Anthemis

Insurtech • Round A • Brooklyn, NY
 

Bowman Consulting Group acquires Project Design

Consulting • Acquisition • San Diego, CA
 

Discovery Behavioral Health acquires Anew Era TMS

Mental Health • Acquisition • Huntington Beach, CA

 

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