CB Insights’ Post

Fake valuations 1/3 of all unicorns have a valuation that is right at the $1B mark (or close) 85% of these are fake unicorns... ...who will never realize that valuation These are companies that chased the $1 billion valuation mark cuz it was: 1. a status symbol 2. viewed as a way to recruit great talent 3. easy to get But the fundamentals of these businesses never made them worth $1B Lots of distressed and 🔥 sales about to come to market Financial sponsors must be lickin' their lips for the bargains to be had See comment for the full list of unicorns in case you want to identify who is in the 85% https://lnkd.in/eSqahpn

Including the Top 100 Unicorns, and highlights the changes in the composition of the list, comparing the data as at September 2024 and September 2023. As at September 2024, there were 1,467 Unicorns globally (September 2023: 1,390). Valuations reflect common stock equivalent methodology to derive an implied enterprise value based on the latest external funding round and do not capture any value implications of economic rights of different share classes. #unicorn #exacorn #statups #investment https://lnkd.in/dm5cubXt

Exciting times ahead

Exciting news on the fintech front! Nerdwallet acquiring Next Door Lending for $1 million certainly raises some eyebrows in the industry. My prediction? This move signals Nerdwallet's strategic push towards diversifying its product offerings and expanding its market presence through strategic acquisitions. • Consolidation in the fintech sector is heating up, and this acquisition underscores the competitive landscape of the industry. • Nerdwallet's move to acquire Next Door Lending could potentially give them a stronger foothold in the lending market while enhancing their overall financial service offerings. Keep a close eye on how this acquisition shapes Nerdwallet's future growth strategies in the ever-evolving fintech ecosystem. Get ready for some interesting developments ahead!

Really enjoyed Jeff Kauflin's profile piece on the current state of late-stage private Fintech. Of course, I love that Jeff and Forbes used Caplight Data in their analysis (thanks Jeff!). But my takeaway is more than a Caplight commercial. Late-stage, VC-backed Fintech valuations were of the hardest-hit sectors from peak to trough between Jan '22 and June '23. Based on institutional-sized secondary market *closed transactions*, many of these companies remain valued 50-70% below the valuations they received in '21 primary rounds. But the *green shoots* are there, as indicated by Jeff. 2yrs of reining in expenses, plus accelerating/re-accelerating growth, plus public comp appreciation, has resulted in investor excitement and a flurry of recent secondary market upward price movements. Stripe and Ramp stand out as bright spots in the space. If you want more on Jeff's analysis, pay for Forbes! If you want more of the underlying data that powered it, DM me. https://lnkd.in/gjjVtF2p

Mergers remain slow but there are still those out looking for a deal. Consider Celero Commerce, backed by LLR Partners, which is up for sale and the JPMorgan-backed Finexio, which is looking for investors. #deals #privateequity #fintech #payments

Canadian payment processor Nuvei is evaluating a possible buyout deal. Canadian #fintech giant #Nuvei is currently in discussions about a significant transition from public to private status. This revelation follows speculations of a deal with private equity firm Advent, putting the spotlight on Nuvei's strategic maneuvers. Nuvei, with a robust market capitalization of $3 billion, is a key player on the Nasdaq, underscoring the potential magnitude of this buy-out—one of the largest in recent history. This transition highlights a broader trend of fintech companies considering private equity partnerships to fuel growth and expansion. Nuvei's services span over 200 markets globally, with direct local acquiring capabilities in more than 47 countries and access to over 600 alternative payment methods. The company's strategic acquisitions, including the all-cash purchase of US-based Paya for $1.3 billion and the recent acquisition of Australia’s Till Payments for $50 million—a significant discount from its once $500 million valuation—demonstrate Nuvei's aggressive expansion strategy and its potential for reshaping the fintech landscape. This potential shift to private ownership, with ongoing significant ownership by its founder, Phil Fayer, and other key shareholders, suggests a strategic pivot aimed at leveraging private equity to accelerate growth, innovate, and expand Nuvei's market footprint. For the fintech sector, this move could signal a burgeoning trend of consolidation and strategic partnerships, influencing competitive dynamics and innovation pathways. The article on Finextra in the first comment. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://t.ly/s541W   - Substack: https://lnkd.in/dzfGJzmW

🤔 What's next for interchange and payments? Wildfire CRO Shawn Conahan recommends attending this webinar for more about the future of interchange fees, sure to be full of insights and considerations for a post-interchange world.

1️⃣ What it's about: MoneyHero Group made an unexpected bid to acquire rival MoneySmart, sparking attention and criticism. 2️⃣ Why it matters: The move highlights aggressive competitive tactics and shifts in leadership at MoneyHero, with implications for the fintech market. 3️⃣ What you can learn: Discover the behind-the-scenes strategies, board dynamics, and challenges MoneyHero faces as it strives for profitability.

The aggregator business often gravitates towards oligopolies. In the end, there’s little to differentiate one from another, which leads to a race to the bottom on fees. Online travel agencies provide a clear example. A handful of companies—Tripadvisor, Expedia, Booking Holdings, and Trip.com—control the majority of the market. Their brands dominate the space, and it’s a pattern we’re seeing across many industries reliant on aggregation. It’s a reminder that in a landscape driven by scale and network effects, differentiation and long-term sustainability can be difficult to achieve. For players in this space, finding a way to stand out before the market consolidates is key. We're seeing personal finance related aggregators in the consolidation phase; I wonder who's next?