with the market Having changed dramatically since the height of the venture capital funding boom in 2021, fintech valuations have largely moved accordingly.
With few exceptions, the once most valuable companies operating in fintech have seen their valuations drop significantly, based on secondary stock activity as analyzed by Notice.co, a company that has builds a pricing tool for private markets.
One of the starkest examples of declines is in payments giant Stripe, which saw its funding valuation reach $95 billion in March 2021. The company’s secondary market valuation peaked at nearly $200 billion. dollars in January 2022 (!), according to data from Notice, which understandably caused frustration among employees who wondered why the company hadn’t gone public at that time. But at the time of this writing, its secondary market valuation has fallen 73% to $52.5 billion.
Only three fintech startups have actually seen their secondary valuation increase since January 2022: HR/payroll startups Rippling, Gusto and Deel. These companies saw their valuations jump 103% (to $13.2 billion), 5% (to $10 billion) and 37% (to $6.5 billion), respectively, according to Notice.
Greg Martin (co-founder and managing director of Rainmaker Securities, a secondary trading platform) told TechCrunch+ that while some fintech unicorns are really solid businesses that were just a tad too expensive, others aren’t quite yet. back down to earth. “Other people who cling to their valuation are likely to take longer to bottom out and come back up and gain momentum,” Martin said.
Private markets are a great way to understand how companies are doing between funding rounds, said Notice Founder and CEO Tyson Hendricksen.