Once the insurgents of finance, fintech firms are becoming part of the establishment. The huge cheques from these investors come just as fintech firms are looking to write the next chapter. Acquisitions provide a handy shortcut; their high valuations mean the big firms can often snap up smaller ones on the cheap by swapping equity. Stripe, the most valuable private fintech firm in the West, is a good example of the sector’s coming of age. Banks in particular may find out about promising fintech firms only once they are too expensive.

Source: Stuff July 13, 2021 21:56 UTC