Fintech startups face a wake-up call in 2023
For the past ten months or so, fintech startups Axios has spoken to have sought to put up a strong front, saying they can brave the market downturn as they have at least 12 to 18 months of runway.
Yes, but: That deadline is coming up, fast.
Why it matters: As bank accounts begin to dry up, desperate companies will be far more amenable to buyouts. A mix of M&A sprees, venture debt financings, and startup meltdowns is probably around the corner.
Details: According to Silicon Valley Bank's November "State of Fintech" report, about 44% of fintechs with under $10 million in annual revenue had less than 12 months of runway as of the end of the third quarter.