The Strategist

Largest fintech companies lose almost $500B in value



07/19/2022 - 03:45



According to analysts at the research firm CB Insights, the projected value of the major financial technology companies has decreased by over $500 billion.



Advantus Media Inc. and QuoteInspector.com
Advantus Media Inc. and QuoteInspector.com
Since 2020, over than 30 fintech businesses have gone public in the United States. At the time, investors were actively pouring money in these businesses because they thought the pandemic's rising digitalization will benefit them in the long run.

However, the value of such companies has decreased by $460 billion since then, or by almost 50%, due to current worries about rising rates, lack of profitability, and uncertainty about their business plans. The high-tech NASDAQ Composite index fell during that time by only 29 percent.


Fintech companies, in particular those engaged in digital payments, "were among the first in the IT industry to benefit during the pandemic - everyone was sitting at home shopping online," Mizuho analyst Dan Dolev told the Financial Times. Dolev claims that the industry is currently going through a correction that started sooner than for other high-tech market players.

source: ft.com

 




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