Axios Pro: Fintech Deals
August 04, 2022
Axios Pro Exclusive Content

Good morning, fintechies. Happy Friday eve.

Situational awareness: Coinbase shares are up 26% after announcing a partnership with BlackRock, giving the latter's clients direct access to crypto via the exchange.

1 big thing: Fintech valuations fall

Data: Pitchbook; Chart: Axios Visuals

Fintech companies are raising less money and at lower valuations, according to Pitchbook's Q2 fintech report.

Why it matters: Lower public valuations and a slowdown in M&A and IPOs are having downstream effects on fintech companies seeking VC funding, Ryan writes.

By the numbers: Fintech companies raised $24.1 billion in venture dollars during the second quarter, across more than 1,100 financing deals, according to Pitchbook.

  • That represents a decline of 17.8% from Q1 — the biggest drop since the third quarter of 2018.
  • Valuations were down during the period, with the median pre-money valuation for late-stage fintechs declining 40.6% to $153.0 million, from Q1’s $257.5 million.
  • Even at the early stage, the median pre-money valuation fell 19% to $51 million, from $63 million in the prior quarter.

What we're watching: After a booming IPO and M&A market for fintechs in 2021, the pace of deals has slowed dramatically in recent quarters.

  • The research firm noted there were only 68 VC exits for the quarter, ending June with just $11.2 billion in exit value.

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