fintech digest
US VC Investors, Fundraising Woes, AT&T Payables, Monzo & More
Research Team
14 July 2023
Fasanara has a front row seat to the evolving asset class of Fintech Lending and investing in the Digital Future. We’re constantly assimilating information, speaking with innovators, and developing our theses. Here’s a selection of important topics Fasanara has been discussing internally:
US investors ditch European VC for domestic deals
US investors are scaling back on European venture investments as they refocus their attention on domestic opportunities. At the beginning of this year, PitchBook analysts predicted that European VC deals with US participation would represent over one-quarter of 2023 deal count. It would have been the highest level ever. Yet as the numbers stand currently, US presence in European deals is likely to come in lower.
TCV Raised 50% to 75% Less Than Planned For New Venture Fund
TCV, a 28-year-old mainstay of the venture capital industry, has raised 50% to 75% less capital for its next flagship fund for private investments than the $5.5 billion target it set last year, according to new securities filings and a document compiled by one of TCV’s limited partners.
AT&T’s $13bn pile of puzzling payables
AT&T has a lot of debt. The US telecommunications company’s total borrowings stretch well north of $130bn, a bigger debt pile than many countries. AT&T also has a lot of what could be termed “hidden debt”. Hidden, that is, until a recent accounting change cast a light on billions of dollars of liabilities buried in its books for the first time.
London fintech Monzo preparing merger deal with Nordic rival Lunar
London fintech Monzo is preparing a bid to merge with its Nordic rival Lunar as it turbocharges its European expansion. The mobile bank is holding discussions with Denmark-based Lunar over the terms of the deal, according to a report by Bloomberg. It is also considering other acquisitions in Europe.
Shares of Startups Are Turning Dirt Cheap, Attracting Venture Funds
Investment firms are bolstering stakes in closely held companies. ‘It’s a sea change’ from a year ago. It’s a bargain-hunter’s dream, and for sellers it’s sometimes the only good option left. Cash-strapped founders, employees and investors are under pressure to sell their stakes amid awave of tech job cuts, a tepid IPO market and rising interest rates. That has helped to drive downprices. As of May 31, shares of startups were trading at a median discount of 61% compared tovaluations at their latest funding rounds. That’s the hottest opportunity in the secondary markets since the 2008 financial crisis.