Correcting Poor Investor Decisions: Another way to view this decline in valuation is as a correction of the overvaluation that led to the overinflated valuation in the first place, a common occurrence with internet-based technology. The fact that we have seen this before in the dot.com bubble does not speak well of the decision-making process of venture capital firms and other investors. #fintech #valuation #internet #investments #decisionmaking #investmentdecisions #financialbubbles
Tuesday, July 19, 2022
Monday, July 18, 2022
FinTech Haphazard Valuations
FinTech Haphazard Valuations
https://on.ft.com/3RHadAr
The immense decline in the valuation of FinTech companies, pegged at around 50%, reflects the overly optimistic assessment of the firms' future profitability, especially in the outlook for future revenues. This is a chronic problem in the valuation of newer high-tech companies where little or no performance data exists. The same problem occurred during the dot-com period in the late 1990s.
The immense decline in the valuation of FinTech companies, pegged at around 50%, reflects the overly optimistic assessment of the firms' future profitability, especially in the outlook for future revenues. This is a chronic problem in the valuation of newer high-tech companies where little or no performance data exists. The same problem occurred during the dot-com period in the late 1990s.
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