When it comes to emerging sectors of the economy, FinTech companies remain in the spotlight. FinTech companies seek to improve inefficiencies in the financial services industry. COVID-19 accelerated these efforts as legacy problems became impossible to circumvent in the environment that the pandemic created. Valuing FinTech companies can be a complex exercise as their market opportunities can be evolving, and their cap tables are often complex. This complexity can be a result of venture capital, corporate, and private equity investors being cobbled together across a number of funding rounds.
Throughout this whitepaper, we look into the payment industry’s place in the larger FinTech ecosystem, macroeconomic factors driving the industry, microeconomic factors pertaining to specific companies, and what valuation methods are most prudent when determining the fair market value of a payments company.
