Merge Or Perish: Why Billion-Dollar Fintech Companies Are Suddenly Facing A Bleak Future | Forbes

Описание: Fintech is the term widely used for technol­ogy startups focused on financial services. These fledgling companies were founded mostly in the last decade, with the goal of disrupting old-guard banks, insurers and credit card companies with whiz-bang tech. Only a few short years ago, venture capitalists couldn’t get enough of the sector. But with the IPO market in a coma and fintech stocks down 60% from their peaks, venture investors and bankers have turned off the cash spigot, not just for new investments but for additional funding to existing portfolio companies.

According to CB Insights, fintech funding sank to $11 billion in the fourth quarter of last year—the lowest level since 2018. A survey of 450 early-stage startups conduc­ted last fall by January Ventures, a Boston-based venture firm, concluded that 81% had less than a year’s worth of cash on hand.

Read the full story on Forbes: https://www.forbes.com/sites/jeffkauf...

Subscribe to FORBES: https://www.youtube.com/user/Forbes?s...

Fuel your success with Forbes. Gain unlimited access to premium journalism, including breaking news, groundbreaking in-depth reported stories, daily digests and more. Plus, members get a front-row seat at members-only events with leading thinkers and doers, access to premium video that can help you get ahead, an ad-light experience, early access to select products including NFT drops and more:

https://account.forbes.com/membership...

Stay Connected
Forbes newsletters: https://newsletters.editorial.forbes.com
Forbes on Facebook: http://fb.com/forbes
Forbes Video on Twitter:   / forbes  
Forbes Video on Instagram:   / forbes  
More From Forbes: http://forbes.com

Forbes covers the intersection of entrepreneurship, wealth, technology, business and lifestyle with a focus on people and success.