20220709 JDM just for fun July 9th, 2022 (Pitchbook 2q2022 Fintech Report and more)

TODAY: Meeting with Partners to brainstorm a new type of fund with focus on profits and fun! #funfund


full menu: Steakhouse in Carlsbad – Ember & Rye | Park Hyatt Aviara

QUOTE DAY:” Constantly choosing the lesser of two evils is still choosing evil “- Jerry Garcia (last Concert with Grateful Dead July 9th, 1995).

More quotes by Grateful Dead: The 60 Most Timeless Grateful Dead Quotes For Your Enjoyment – AnQuotes.com


If you want to speak about Fintech please reach out to JD’s admin by Googling “JD Morris Forbes” or find his staff on linkedin via “S. Mesfin or H. Mesfin” on LinkedIn.

Here is key take aways from Pitchbook research on Fintech 2q2022.

Key takeaways •

• No substitute for core profitability: Investors have become more fearful of risk assets due to rising rates and the threat of recession. As a result, riskier companies (often money-losing businesses) have underperformed profitable firms.
• Investor patience with unprofitable companies could wane: Many mutual and
hedge fund analysts investing in newly public fintechs can hold their positions
for multiple years as they await profitability. However, we believe some investors
will become impatient and agitate for change. We expect investors to pressure
public fintechs to seek new revenue streams, cut costs (several companies have
announced layoffs), exit money-losing businesses, and even to seek an acquirer.
• The market is encouraging late-stage startups to remain private: The recent
market rerating has pressured some late-stage startups to remain private for
longer. Private ownership gives startups the ability to invest in growth over
profitability, whereas public companies are typically pressured to achieve positive
• Analysts’ financial forecasts could trend downward: We believe profit and
revenue forecasts have room to decline as some analysts may be anchoring to
optimistic roadshow projections or have not fully integrated the impacts of slower GDP growth and rising rates. A recession would lower their forecasts. Consumer facing fintechs must significantly expand their customer bases and launch multiple products to grow revenue. Consumer fintechs typically have a single specialty with one or two tertiary products, with the exception of SoFi (NASDAQ: SOFI), which has a fully developed product suite.

JDM & RHC are subscriber to Pitchbook as of July 9th, 2022

Author: JDM

Simi Private

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