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.