Nice summary, quote of FT steve has a lot of food for thought: Steve McLaughlin, founder at FT Partners, a boutique investment bank focused on financial technology, said that many “fintech” startups have raised enough capital and growth enough that they are in “no man’s land, in terms of there being no one to buy them.”
Prominent venture capitalists in the red hot “fintech” – or financial technology – sector say they are seeing overvaluation everywhere they look. They just aren’t worried about it. Of the several companies in the sector valued at over $1 billion in a private fundraising, “I don’t think there’s a single one properly priced,” said Hemant Taneja, managing partner at General Catalyst, speaking at the Money20/20 conference in Las Vegas. Mr. Taneja said companies were “raising capital on the premise they can grow into it” by growing quickly. “The whole idea of crazy valuation” is that “some companies will go way past it,” he said.