We look at why venture capital investors are slowing down, and the dynamics of how their portfolios work under duress. We talk about the incentives of limited partners to derisk exposure, the implication that has on cash reserves, new deals, and fundraising. We also touch on how the various Fintech themes are responding to an increase in digital interaction while seeing fundamental economic challenges. Shrewd competitors will be able to consolidate their positions and gain share during the crisis, but that will have to come from the balance sheet, not intermittent growth equity checks.
This week, we look at:
Over $1 billion in raises announced last week, and over $10 billion in Fintech company value creation: Checkout.com with $450 million at a $15 billion valuation, Affirm more than doubling after its IPO to $30 billion, lending enabler Blend raising $300 million, and payments enabler Rapyd raising $300 million.
A systems theory framework that explains the stocks and flows of goods and services, and what monetization strategies are available to fintechs
How transactional models are thriving and creating 50-100x revenue multiples
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