Covid-19 will reset fintech market valuations; spur M&A

finextra | March 24, 2020

The Covid-19 outbreak may just provide the pin that bursts the fintech bubble, according to a report by Rosenblatt Securities, which forecasts a devaluation of Unicorn businesses and tough times ahead for challenger banks, marketplace lenders and robo-advisory services. The Rosenblatt note points to a likely deterioration in fintech operating performance during a deep downturn, as funding sources evaporate and exit options change significantly. States the report: "These forces may feed off each other, creating a vicious cycle where deteriorating business performance makes funding more difficult and vice versa, should the market downturn last long." A large proportion of private fintech firms are less than ten years old and facing their first market downturn. Many management teams may be inexperienced in responding to difficult business conditions - weak customer demand, working capital squeeze, and a tougher environment to retain employees.

Spotlight

The autonomous car is coming. We've been hearing that since the grainy black and white sci-fi flicks of the 1950s. But today, we're closer than ever to seeing the autonomous car become a reality. With everyone from Google to Nissan working on autonomous technology, the streets may soon be filled with driverless cars.

Spotlight

The autonomous car is coming. We've been hearing that since the grainy black and white sci-fi flicks of the 1950s. But today, we're closer than ever to seeing the autonomous car become a reality. With everyone from Google to Nissan working on autonomous technology, the streets may soon be filled with driverless cars.

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