What is a fintech worth these days? – TechCrunch

That’s not news Times have changed in the fintech world. After starting a financial technology business see their luck increase While the venture capital boom of 2021 is coming to an end, they are now suffering a slump of a similar scale.

Damage is not one-way. Instead, the pain surrounding the fintech sector is varied and multifactorial. Today, I wanted to take a look at some of the key data points running around in my head. These include the latest from Coinbase and Klarna, where anchor banks are in the current valuation environment and what the changing market means for venture capital dollars. poured into the sector globally over the past few years investing heavily in the private market.

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The gist, as you can find out above, is that fintech was the hottest thing around last year, a fact that can now turn into a venture capital investment and a headache for startups.

TechCrunch reported this early yearquote CB Insights dataas global venture capital grows to $621 billion in 2021 from a relatively modest $294 billion in 2020, fintech investment itself has grown to $131.5 billion from 4,969 deals , up from $49 billion invested in 3,491 deals in 2020.

So the amount at stake here is hundreds of billions in terms of capital investment and could be trillions when we consider the value of startups that have raised in good times. (Recall that Crunchbase estimates the total value of all global unicorns is $4.6 trillion, although that figure may include some zombie valuations that are no longer relevant in a more conservative investment market.)

Refreshed on fintech funding, now let’s dig into less exciting news blowing the seas about startups building fintech.

How much is the revenue from fintech worth?

It’s software Valuations rise during venture capital peak 2020-2021, every company out there wants at least one technology company and one software company the best. That’s because the value of software revenue, calculated on a per-dollar basis, has increased dramatically. Every dollar of software revenue a company can claim can be worth up to $30 or $50 or even $100.

So people worked to build an income from the software or rebrand their other earnings. This is a problem for many fintech companies as it has recently been noted that most of their income is not softwarebut instead something else that software facilitate. However, the two substances are not the same.

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