You are most welcome to exchange! If you received this in an inbox, thank for signing up and your vote of confidence. Sign up if you are reading this as a blog post on our site. over hereYou can then pick it up in the future. Every week, I will be taking a look at the most important fintech news. This will include everything, from trends and funding rounds to analysis of a specific area to hot deals on a company or phenomenon. There is a lot of fintech news, and it’s my job keep you informed and understand it so you can stay on top of it all. – Mary Ann
This was one of the most important news stories of the week Lay off 260 employees engravedIt employs about 20% of its workforce. This may seem surprising to some, but not to everyone.
Since May, rumors about Plaid laying off 200 workers have been circulating. When asked, Plaid denied that it had ever laid off any workers. But as the year went on, and the challenges of the macro environment increased, it felt inevitably Plaid—which it was worth $13.4 billionLast year, you joined the long list financial technology companies that are leaving workers.
Zach Perrett, the CEO and cofounder of the company, stated that the decision to reduce staff was made before revenue growth. The current economic slowdown also meant that revenue growth didn’t materialize as quickly and as planned.
It’s become a common refrain that CEOs are responsible for overhiring. optimisticAbout revenue growth Are you optimistic? It seems that there is a fine line.
One of the most surprising things about the recent round of layoffs within the fintech sector is the large number of layoffs being made at the highest-value startups. Klarna was worth $45B last year. This year, testified Significantly lower ratingThen there’s the Broken jobsMultiple times. The $12.3 billion value of Britain’s exit was a result of its membership in the European Union. earlier this year. then Lay off. Stripe was worth $95Billion last year. then Mass layoffs. The value of the Ring was $25 billion in 2013. then Mass layoffs. Now plaid.
Did they get ahead of their own? They were trying to do too many things too quickly. (Co-CEO of BRICS, Henrique Dubograss admit the same Onstage at Disrupt.) They were all onstage at Disrupt.) Did they all believe venture money would flow unassisted forever?
Some of these companies may have believed they would need a lot more workers. Who would have thought that there would be such a drastic downturn?
It could have been a combination all of the above. Naturally, every company is different and I am not privy to their internal discussions. However, it is clear that the reset may prove to be correct.
As a technology journalist, it is troubling to hear and write about such high-profile layoffs. I can only imagine the secrecy of the other startups in this space. My humble opinion is that we all should learn from the mistakes made by others. I’m not specifically pointing fingers at the companies cited above. I mean in general.
I am not a founder or CEO and likely will never be. Here’s some advice that’s probably not requested, but which is likely to be obvious to anyone who has covered startups for years.
- Keep your eyes on the prize. It’s easy for you to get caught up in the competition and want to be ahead of your competitors. However, before you jump into new sectors, make sure you know which ones you are in.
- Be responsible and careful when hiring. This does not mean that you must have at least two to three employees. This means that every job opening had to be carefully evaluated. Is it really necessary? Is this an employee that we need to have? Is it logical to hire a contractor immediately?
- Be humble. Don’t brag. Kicking your arse and calling people names? You are good for yourself. Do not shout too loudly. You can’t be sure of everything. Arrogance is another.
- Reduce or stop trash talking. It’s easy to get swept up in arguing about why your company is better or worse than others, especially when you use social media. It’s a good idea talk about why your offer is better than the rest. But is it fair to name-call and make others feel bad? It usually has the opposite effect. You areLooks bad.
- Be realistic. You can share it on social media (Twitter. Mastodon. LinkedIn. Post. – wherever you are most likely to share it) and when you speak with the media. Credibility is important, and I know that it is valued and appreciated by my fellow CS correspondents. Transparency is key to that, especially within the company. Don’t mislead or leave your employees in the dark.
- Oh, and don’t lie or fake.
Although I didn’t intend to create a list of CEO dos or don’ts when I started this newsletter, I am happy to share them with you. 🙂I appreciate you taking the time to read my blog.
The weekly news
“Fintech was hot in 2021, but looking at it… maybe it was too hot? The sector exploded Last year, it saw record investment — $132 billion globally, according to CB Insights — with many startups reaching high valuations, including Ribbon 95 billion dollars, ClarnaIn the amount of $45 billion Plaid $13 billion. While these companies have very real customer bases and products, it’s not hard to imagine that at least some of these ratings were fueled by hype.” Rebecca Szkotak talks about how difficult it is Fintech valuations are downThis year.
RobinhoodIt launched a waitinglist for its new offering Robinhood Retirement last week. It describes it as the “first and sole” Individual Retirement account (IRA) that offers a 1% match on each dollar contributed. This is a bold bet by the fintech giant that the traditional 9 to 5 employee is no more the norm. It targets contractors and job workers who find it difficult to save for retirement. for a full time job and access an employer-sponsored plan. It is also possible that this strategy was designed to retain users, as the company reported losing 1.8million monthly active users in the quarter. This is down quarter-on quarter by 12.8% to 12.2million, which is “the lowest level since going publicly”. Yahoo news. More information by me over here.
Taj Kane-Okafor stated, “Chipper CashA cross-border payments firm in Africa that was worth $2.2 billion in the last year, has Lay off part of its workforce. A few affected employees and others shared the news on LinkedIn last week. TechCrunch has learned from sources that more than 50 employees have been affected across multiple departments; The engineering team took the biggest hit, with about 60% of the laid-offs coming from the department, according to people familiar with the matter.”
From Manish Singh: “An Indian financial services company PaytmAfter a thorough investigation, you might consider buying back your shares. quivering generalwhich saw its share price fall more than 60%. Paytm said it will discuss with the Board of Directors on December 13 the proposal to buy back the fully paid-up equity shares of the company, the Noida-based company disclosed in the stock exchange filing.”Read More over here.
Fintech is our focus Gilgamesh projectsNamed Paula youAs the platform’s newest (and perhaps third) partner, he is also Chief Operating Officer. The company is approaching the two-year mark of its initial fund. Gilgamesh was founded in 2020 and has invested in more than 30 early-stage fintech companies in the Americas including Xepelin and Klar, Pomelo and Glean.
From Finkestra: “UK mobile bank only Crow Launched its flagship checking account, offering customers 2 per cent interest on amounts up to £85,000. Kroo’s analysis of Bank of England data shows there was £271 billion idle in non-interest-bearing British households’ time deposits as of September 30, 2022. Kroo is targeting Gen Z and Millennials by planting two trees for every new customer who opens a checking through its partner Charity One Tree Plantted.
Adam Newman’s latest venture, the residential real-estate upstart FlowHe is partnershipStartup in the financial technology field WarrantyTo create a digital wallet that Flow residents can use. The digital wallet will include a variety of financial products, with specific capabilities that will be announced at a later time. In case you somehow missed it, Newman—you might remember him from his days at a little place called WeWork—in August made headlines (and a lot of people were pissed off) when he Raised $350 millionFlow, which has a value of $1 billion, is a unicorn even before it goes into business.
Mastercard launched the Open Banking Start Path program earlier this year in an effort give open banking startups “access a range of hands on mentoring, coinnovation opportunities, engagement with Mastercard’s worldwide network of banks and merchants, partners and digital players to help them scale their businesses.” Mastercard selected these eight open banking startups to be part of the program on Friday: AIS Portal (Poland); Corncia (United kingdom); Fego. ai (India); Floyd (shell); Kaushi (United State); level (United kingdom); Percentages(USA) f Rails (Canada). More over here.
As I mentioned Reuters:”dLocal (DLO.O)The CEO of a Uruguayan fintech company facing allegations of fraud from a short seller has applied to the UK for a regulatory license. This is amid claims that the company evaded strict regulatory oversight by relying only on Maltese regulators.
Brazilian startup in financial technology MateraThis is the company that invented instant payment technology and a QR code for financial institution, Headquarters moved to San Francisco. The company informed me via email that this move “comes amid widespread adoption of pix The instant payment system implemented by the Central Bank of Brazil in 2020 and used by 70% of Brazilians.” Specifically, Matera provides an instant payment program for banks that benefit from Pix in addition to providing basic banking services to more than 250 global banks, credit unions and digital banks – serving more With 55 million accounts, the company says its jump into the US market “will enable more financial institutions to expand their payment capabilities”.
From Forbes: “In a year filled with devastating losses in financial markets, these traders, entrepreneurs, and investors skillfully navigate turbulent waters to make a huge impact.”
Paula, Gilgamesh Ventures is your company
Finance and Mergers and Acquisitions
Techcrunch – Seen
Ocho wants to rethink (and rebrand) personal finance for business owners
Andreessen Horowitz Heads $43 Million Series A for Setpoint, Which Aims to Be “Stripe for Credit”
TripActions secures $400 million credit facility from Goldman Sachs, SVB
SBM Bank India, which is building the BaaS platform, is seeking $200 million in financing
And in other locations
Hotel payment software platform Selfbook has announced a strategic investment from Amex Ventures. TechCrunch reported the previous increase over here.
Rival SME-focused bank Allica brings in £100m Series C led by TCV
Avant secures $250 million in funding from Ares Management Corporation
Mortgage infrastructure platform Pylon raises $8.5 million in a seed round
Carputty Wins Millions From Investors To Reduce The Pain Point Of Auto Finance
And so I’m going. I will only publish one newsletter this year, and then I will be taking a break during the holiday season. Have a wonderful week! Mary Ann, xoxoxo
Have news or inside info on a topic you covered? We would love to hear from your. You can reach me at maryann@techcrunch.com. You can also send us a message at tips@techcrunch.com. If you prefer anonymity,And the Click here to contact usSecureDrop (FAQ here) and many encrypted messaging apps.)
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