While being public recent reports show a wide-ranging market correction, with tech and fintech stocks seeing the biggest losses.
in particular, Fintech index F-Prime Capital’s State of Fintech 2022 report tracks the performance of emerging public financial technology companies. The F-Prime Fintech Index fell to $397 billion by the end of 2022 after it peaked at $1.3 trillion in late 2021.
The Fintech Index currently consists of 55 companies in B2B SAAS, Payments, Banking, Wealth & Wealth Management, Lending, Insurance, and Proptech.
“The biggest change for 2022 is that for the first time, public investors are taking part in fintech stocks,” said David Jegen, managing partner at F-Prime Capital. “Given the broad macroeconomic implications for technology, it probably wasn’t great timing.”
The fact that so many fintech companies have gone public is itself a big problem, said Jegen. “We have had an exciting fintech disruption in his decade. “Everything is driven by private investors.” “So 2021 was a very big year because the IPO window was open at a time when we had a very mature cohort of fintech companies.”
In fact, 75 fintech companies have gone public in 2021. 2022 was the first year that F-Prime was even able to put together a fintech index.
Notably, during the 2020-2021 peak, the decline was particularly pronounced for the 10 most significant exits. In other words, the bigger the exit, the bigger the drop. Cumulative market cap losses for the top 10 recent exits totaled over $220 billion. Coinbase, NuBank, Robinhood, SoFi, Affirm and Wise all saw their valuations plummet.
