But fintechs are different. And here’s why. Nowadays, the valuation of fintech companies isn’t so much dependent on their economic valuation, revenue or profitability. Their valuation is based on the probability of future higher valuations and ultimately liquidity for the investors. A quick reminder of where the exit doors are located.
Management Buyout: Probability – Zero to very low. IPO: Probability – [...]
Even the most experienced private equity investors see startups as a very particular class of asset. They are completely right – no doubt about that. But even if investing in startups is a very particular job because of the great risk involved and the non-liquid aspect of the shares, there are still a few simple rules that are as true for startups as they are for public stocks or any other investment.
Stick to what you know: A robot advisor or algorithmic trader could achieve great results in Bonds, FX, etc. But in venture capital or private equity: forget it. Startups are typically disruptive digital tech companies, [...]
Early Metrics is one of the most innovative companies on the market. Launched in France in May 2014, it is the first rating agency for startups and innovative SMEs that aims at measuring their potential. Analysing startups free of charge, Early Metrics has been well-received by founders and CEOs – so much that already 500 companies have been studied and rated. With an international outlook, the company is eager to grow and expand its activities; already present in London, Early Metrics will open new offices in [...]