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Banking Briefing: Sinking public neobanks

  • The market hasn't been kind to newly-minted public neobanks.
  • Firms like Dave are experiencing a sinking share price as investors say 'meh' on their prospects and valuations.
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Banking Briefing: Sinking public neobanks

Investors aren’t impressed with the new class of fintech firms hitting public markets. Challenger bank Dave is the latest to go public — it floated its shared via a merger with a SPAC last Thursday. The market originally valued the firm, which saw success with early wage access and credit building, at $3 billion. Shares were down 32% a day after the firm hit public markets.

Dave’s sagging stock isn’t alone in terms of public fintech firms exploring public markets. Firms like eToro (valuation cut 15% on its upcoming SPAC) and MoneyLion (down 17% last week) aren’t seeing much success as public entities, even if their businesses are performing relatively well.

Getting back to Dave, the company says it expects to hit about $200 million in revenue this year, about 60% more than last year.

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