Public Fintech lost 72% of its market value last year
While the public According to a recent report, the market correction was widespread, with tech and fintech stocks seeing the biggest declines.
Specifically, the Fintech Index — which tracks the performance of emerging, publicly traded fintech companies — fell by a staggering 72 percent in 2022, according to F-Prime Capital’s State of Fintech 2022 report. After peaking at $1.3 trillion at the end of 2021, the F-Prime Fintech Index fell to $397 billion by the end of 2022.
Currently, the Fintech Index includes 55 companies across B2B SAAS, payments, banking, wealth and asset management, lending, insurance and proptech.
David Jegen, managing partner of F-Prime Capital, said: “The biggest change in 2022 is that public investors are weighing in on fintech stocks for the first time. “It’s probably not a super great time considering the broader macroeconomic impact on technology.”
Having a lot of fintech companies go public has been a big deal, Jegen said. “We have had 10 years of exciting fintech breakthroughs, all led by private investors,” he said. “So 2021 is huge because the IPO opportunity is open when we have a really mature group of fintech companies.”
Indeed, 75 fintech companies have gone public by 2021, meaning 2022 is the first year that F-Prime can even launch a Fintech Index.
Notably, the decline was especially pronounced for the 10 largest exiting enterprises in the peak years 2020-2021. In other words, the larger the exit, the greater the decline. Cumulative market capitalization declines for the top 10 recent exits totaled more than $220 billion; Coinbase, NuBank, Robinhood, SoFi, Affirm, and Wise all saw their value decline.
