2021 US fintech IPO review in 4 charts: Most stocks are starting the year in the red
- Most public fintechs that IPOed in 2021 have their share prices down well in the double digits compared to their initial market offering.
- Investors were betting big on fintech startups, but this confidence seems to be dying out.
Last year was a busy year for the US fintech industry, which welcomed 15 new companies on the public markets. Investors were betting big on fintech startups, but this confidence seems to be dying out. Looking at stock performances since the public offerings, it looks like investors are yet to be fully convinced of their worth.
Most public fintechs that IPOed in 2021 are starting the year in the red, with share prices down well in the double digits compared to their initial market offering.
For example, MoneyLion, Remitly and Blend have shedded almost two-thirds of their initial valuation as their respective stocks dropped more than 60%. MoneyLion and Remitly both IPOed at the end of September, and are currently at the bottom of the barrel in our list.
Blend, a mortgage fintech, debuted on the public markets mid-July and raised $360 million in its IPO, earning a valuation of $4 billion. Its market capitalization now stands at around $1.6 billion.
At Robinhood, shares were listed at $38 but fell by 10% on the first day of trading as its Q3 earnings results were below expectations. Investors seem to be skeptical about the long-term performance of the company, as its stock is now trading nearly 60% below IPO at $15.9.
US payments firm AvidXchange was seeking a valuation of nearly $5 billion, listing its shares at $25 a pop, but it’s now trading at $13.2 as of January 7 – a nearly 50% decrease.
Marqeta debuted with $27 a share, setting its valuation at over $15 billion when it launched its IPO on June l9 ast year. Its stock closed at $15.6 last week, a 42% drop since the public offering.
Crypto marketplace Coinbase offered its shares to the public on April 4, trading at $381 apiece at market open. The share price closed at $328, taking the company’s valuation to around $85 billion. Since then, the company witnessed a $35 billion valuation drop, with its market cap currently standing at around $50 billion.
Meanwhile, financial technology company SoFi gained in its first trading day on June 1, following its merger with Social Capital Hedosophia Holdings Corp. V, a special-purpose acquisition company (SPAC). The deal gave SoFi an equity value of $8.7 billion. Half a year later, its shares are down more than 30%.
Toast, a software company that focuses on bringing financial technology to the restaurant industry, also lost about a third of its initial $20 billion valuation which placed its shares at $40, only to drop to $28 as of last Friday.
And NerdWallet, a financial education fintech, went public in November at $18 a share, but has fallen nearly 20% since, cutting its valuation to just under $1 billion.
Turning to the minority of fintechs that actually saw their share price grow since their public market debut, the strongest performances were at Affirm and DLocal.
Affirm was the first company on our list to hit the public markets, announcing its IPO around this time last year at $49 a share to raise $1.2 billion. It has since recorded a 63% increase to close at nearly $80 at the end of last week, taking its market cap to over $22 billion.
Payments fintech DLocal raised nearly $620 million in its June IPO, and its share price has risen nearly 50% to $31.1 last Friday.
At Expensify, a fintech that simplifies expense reporting, investors showed a big vote of confidence as the stock surged 50% from $27 to nearly $40 on the November 9 IPO, as the company raised $70.2 million. It has decreased since, now trading at $32.3, but that’s still a 20% gain relative to the IPO value.
And last but not least, Wise is up 15% since its IPO. Its market cap stood at around $5 billion before the flotation, and grew to just over $9 billion as of last Friday.