Is the ‘fintech bubble’ about to burst? And a day in the life of Balance CEO Bar Geron – Tearsheet
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Drying up investments, falling valuations, increasing layoffs: Is the “fintech bubble” bursting?
In 2021, VCs funneled an unprecedented amount of funding into fintech startups early and late. VCs invested a record $121.6 billion in 2021 — up 153% year-over-year, and made a total of 4,987 investments in the space — up 54% year-over-year, according to PitchBook data. Since the start of 2022, however, things have taken a grim turn.
Rising interest rates and fears of a looming recession have become roadblocks for the economy, forcing the fintech industry to take survival measures. Giants like Robinhood are reeling after a strong 2021. Earlier this month, the firm announced a 44% drop in revenue, and a decision to lay off a further 23% of its staff, after laying off 9% of its workforce earlier this year.
There could be more dark days ahead for the industry, as experts say the bear market could last another two years. Funds continue to dry up and companies are taking measures to stay afloat and not accumulate too much debt and losses.
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“It’s about balancing things”: A day in the life of Bar Geron, CEO and co-founder of Balance
Balance is a payment platform in the B2B e-commerce area that facilitates digital payments specifically for business transactions. The company is led by CEO and co-founder Bar Geron.
Juggling being a new parent with being the CEO of a new company is challenging to say the least. But with a balanced lifestyle and a solid approach to time management, Geron makes it work.
From practicing meditation to learning to play the piano, Geron has found his own way of keeping his day structured.
We take a look at a day in his life.
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Today’s stories
Galaxy Digital terminates agreement to acquire BitGo
Galaxy Digital has terminated its acquisition agreement with crypto platform BitGo, but still intends to go public. The termination of the agreement comes as BitGo did not submit audited financial statements for 2021 that comply with the requirements of the agreement by July 31. (Blockworks)
Klarna launches new purchase history dashboard for UK customers
Klarna is expanding its app to allow UK consumers to view their entire order history online, regardless of whether they were purchased with Klarna, as part of their bid to become a companion for general shopping. (Finextra)
MoneyLion, Zogo partner to promote financial literacy
MoneyLion has teamed up with financial literacy company Zogo to provide financial education to its over 3 million customers. With this partnership, MoneyLion users gain access to Zogo’s “bite-sized educational modules” through the MoneyLion app’s Today Feed content. (PYMNTS)
Central Payments raises $30 million in equity
Central Payments, which provides payment technology and issues prepaid cards, has raised $30 million in a growth equity raise, joining other BaaS providers to raise capital. The investment will enable the company to grow and separate from Central Bank of Kansas City, which will remain an investor, issuer and strategic partner. (paid dive)
Another China-based company, Lufax is seeking listing in Hong Kong to hedge its US exposure
Fintech firm Lufax Holding Ltd. plans to list in Hong Kong, the latest in a wave of New York-traded Chinese companies seeking alternative IPOs to hedge against the risk of being barred from US markets. The company aims to apply for an IPO in Hong Kong in the second half of this year. (Bloomberg)
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