Risk is increasingly being priced into the valuations of private fintech companies. Klarna’s latest valuation of 5-6x revenue compares with a 7.5x revenue multiple achieved 2-1/2 years ago. Similarly, iZettle, the point-of-sale technology vendor, looks valued at 8-9x revenue, while Adyen, a competitor, priced at 10x revenue in a January 2017 funding round, all according to PitchBook. While these multiples are still much higher than so-called legacy players, they are no longer at “altitude sickness” levels completely unrelated to performance. It’s clear that fintech investor over-exuberance has cooled somewhat.

https://ftalphaville.ft.com/2018/04/16/1523849400000/What-happens-when-fintech-valuations-come-back-down-to-Earth--/