Finance
After Multibillion-Dollar Fintech Binge, Wall Street Has a Writedown Hangover
Blue-chip firms spent big on companies promising new ways to make payments or manage money. Now they understand they overpaid.
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Over the past few years, venture capitalists and Wall Street giants paid eye-popping prices for companies that promised new ways to bank, borrow or buy insurance. In 2021, global spending on these so-called fintechs reached a fever pitch at $139.8 billion, almost triple the previous year’s level, according to researcher CB Insights.
But in 2022 that money dried up as a broader bear market took hold. And with fintech valuations falling precipitously, some big players are admitting they paid too much.