In May, S&P Global reports that since 2012, only 3 deals by Banks surpassed $1 billion in deal value, whereas in 2021 alone, a total of 16 FinTech deals worth over $1 billion were made by FinTech firms and private equity investors.? In other words, Traditional Banks do not have a strong track record of targeting FinTechs.? Read C-Innovation's “Value Creation for Banks, FinTechs and Non-FinTechs through FinTech M&A“ article by Isabel Richardson through the link in the comments below?? #donedeal #fintech #banking #banks #bankingindustry #financialtechnology #financialservices #payments #paytech #digitalpayments #digitalbanking #bankingtechnology #banktech #digitalbank #neobank #challengerbank #fintechinnovation #fintechstartup #privateequity #bankingandfinance #neobanks #fintechstartups #fintechnews
Thanks for sharing Marcel ?
Fair point that banks are not participating in the deals (or trying to) which early stage focused vcs and pes are doing but how many of the companies involved in the 16 "1b" deals done in 2021 referenced: 1) will ever deliver windfalls (realized cash returns) based on >1b valuations to the investors involved at these stages? 2) will maintain >1b valuations in their next rounds? If 16 fintechs got lucky and got "dumb money" or took advantage of bubble market valuations in those >1b valuation rounds then some of them may be facing harsh realities when they need additional runway and go out in the market in the next 12-18 months and have to raise at 50-80% down from 2021 levels....
Great share Marcel van Oost and great research Isabel Richardson. I always think that Incumbent Banks have yet to start copying each other in terms of Fintech M&A. This used to be the case in the past when Fintech was categorized as software for financial services.
Thanks for sharing Marcel van Oost! For more insights and update analysis on FinTech and Digital Banks visit www.c-innovation.eu
Definetly a great piece Isabel Richardson! We can expect much more M&As to come. As there are warnings that some start-ups may struggle, creating attractive targets as rising interest rates and tighter credit restrict flows of venture capital globally. Thanks for sharing Marcel van Oost!
Connecting the dots in FinTech...
2 年Link to the full article: https://www.c-innovation.eu/post/value-creation-for-banks-fintechs-and-non-fintechs-through-fintech-m-a