FinTech Fund Portage is a collection of structured equity funds focused on helping late financial technology start-ups.
As Reuters reported Thursday (July 28), the Toronto-based company is targeting FinTech, which is wary that the fund will hurt their valuation as the market declines. Said.
Portage wants to raise up to $ 1 billion by blending debt and equity characteristics and investing in securities that don’t fix valuations like traditional equity financing for startups, the company co-founded. And CEO Adam Felesky said. Reuters.
“We are a liquidity provider in otherwise very difficult environments,” says Ferresky.
A source familiar with the matter told Reuters that Portage is aiming to raise $ 750 to $ 1 billion in capital commitments of $ 200 million.
Read more: The once hot FinTech sector loses $ 500 million in valuation
The report said startups are reluctant to accept lower valuations when it comes to traditional funding in a financial recession.
As reported by PYMNTS, Swedish settlement company Klarna lost 85% of its valuation this year, while its postpaid rival Affirm Holdings has lost 80% in value. PayPal and Block lost a total of $ 300 billion in market capitalization, but Stripe reduced its valuation by more than 25%.
Overall, this once-popular space was down $ 5 trillion in valuation as the cumulative value of shares in newly listed companies in the sector fell by $ 156 billion in the first half of this year. Initial public offerings (IPOs) escalated in FinTech spaces when the pandemic began in 2020, but public offering plans are now at a loss as companies seek to reduce costs, and valuations plummet. I am.
The value of IPOs around the world has fallen 71%. In the United States and Europe, 157 companies raised a total of $ 17.9 billion in the first five months of 2022, while 628 companies raised $ 192 billion in the same period last year.
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A new PYMNTS survey found 3 out of 4 consumers with strong demand for super apps
about: PYMNTS’new survey, Super App Shift: How Consumers Want to Save, Shop, and Spend in the Connected Economy, analyzes responses from 9,904 consumers in Australia, Germany, the United Kingdom, and the United States. did. Rather than using dozens of individual apps, it showed strong demand for a single multifunctional super app.
