The ten most valuable fintech companies in the world are mostly 6-10 years old, with hundreds of millions raised, and multibillion-dollar valuations. Yet, not one of them seems particularly close to an offering.
PitchBook Emerging Tech analyst Robert Le, who covered the industry in depth in a recent fintech report, points to several reasons for the IPO aversion. "The litmus test for fintech IPOs has been inconclusive, so investors are wary," Le said. "2018 IPOs like Adyen and IntegraFin are doing well, but GreenSky or EverQuote are down significantly. There is also plenty of available capital and investor appetite for mega-rounds." Some notable fintech mega-rounds within the past year include SoFi, Robinhood, Affirm, or Coinbase. "These companies will still scale much slower than other tech sectors due to highly regulatory environments," Le added.