Public fintechs fell in value by 72% in 2022

by Ana Lopez

Public fintechs lost 72% in market value last year

While the public market correction is widespread, tech and fintech stocks have seen the biggest declines, according to a recent report.

In particular, the Fintech index — which tracks the performance of emerging, publicly traded financial technology companies — fell as much as 72% in 2022, according to F-Prime Capital’s State of Fintech 2022 report. After peaking at $1.3 trillion at the end of 2021, the F-Prime Fintech Index dropped to $397 billion by the end of 2022.

Currently, the Fintech Index includes 55 companies in B2B SAAS, payments, banking, wealth and asset management, lending, insurance and proptech.

“The biggest shift in 2022 was public investors being able to weigh in on fintech stocks for the first time,” said David Jegen, managing partner of F-Prime Capital. “That probably wasn’t super good timing given the broad macroeconomic impact on technology.”

The fact that so many fintech companies even went public was a big deal in itself, Jegen said. “We have had 10 years of exciting fintech disruption, all led by private investors,” he said. “So 2021 was huge because the IPO window was open when we had a really mature cohort of fintech companies.”

Indeed, in 2021, 75 fintech companies went public 2022 was the first year that F-Prime could even compile a Fintech Index.

It was striking that the decline was particularly pronounced for the 10 largest exits during the peak years 2020-2021. In other words, the bigger the exit, the bigger the decline. The cumulative drop in market capitalization for the top 10 recent exits totaled more than $220 billion; Coinbase, NuBank, Robinhood, SoFi, Affirm and Wise all saw their valuation fall.

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