The exchange is looking for the value of a key group of fintech startups – or not
While the banks The world is watching US lender First Republic publicly flop after its earnings report showed widespread evaporation of its deposit base, and the startup world of new banks is taking a beating too.
Earlier this week, Revolut, a highly valued UK-based neobank, saw its value drop by about 46% in the eyes of one of its backers.
The exchange explores startups, markets and money.
Read it every morning on TechCrunch+ or catch The Exchange newsletter every Saturday.
Given that Revolut last raised $800M at a $33B valuation in mid-2021, it makes sense that it was probably overvalued at the time – show us a nine-figure starting round of those times that fit right into today’s valuation marks and we I’ll buy you juice.
But Revolut receiving such a sharp valuation downgrade nearly two years after its last price tag has us waiting and watching.
There was a time when it was neobank-for-x-market It was among the most popular startup models, after all. Huge capital has been invested in dozens of global startups looking to reinvent or at least revamp consumer and SME banking. It even led to some liquidity, including Nubank’s massive IPO and its resulting 11-digit valuation.
Revolut’s reassessment raises some questions: How much trimming is left in the fintech world? And is it likely that we will see something similar in general in the emerging new banking sector?
This morning, we’re breaking down what happened on the adventure in the first quarter of 2023 as well as a few data points from the F-Prime FinTech Index and the resulting reports. Next, we’ll cover our most recent new bank financial results, and come to a conclusion about how much pain — or how little — new banks can expect in the coming months. for work!
Inside money and money
We have CB Insights’ fintech funding data for the first quarter of 2023, but it comes with a huge asterisk. Without additional context, funding for fintech startups increased by 55% compared to the fourth quarter of 2022, generating a global tally of $15 billion.
However, the caveat is that Stripe’s latest $6.5 billion raise alone accounted for more than a third of that amount. If you exclude that round, the tally would drop to $8.5 billion, which is a 12% drop on a quarterly basis.
This is the big picture. Looking at the fintech group more closely, we’re curious to see which categories outperformed the others. Data of this kind is hard to come by on private companies, but we do have some interesting insights into public companies.