D.A. Davidson’s Technology Group has released its second annual FinTech Herd report, featuring the top 100 privately-held financial technology companies based in the U.S. The selected companies are known for their disruptive and innovative technology, growing market presence, and overall notoriety within their respective sub-sectors. The report covers various areas of expertise, including Bank Tech, Capital Markets Tech, Consumer Finance Tech, Crypto & Blockchain, Data & Analytics, Insurance Tech, Payments Tech, Real Estate Tech, Regulatory Tech, and Wealth Tech.
According to Michael Maxworthy, Managing Director and Co-Head of the Technology Investment Banking Group at D.A. Davidson, the release of The FinTech Herd 2023 demonstrates the company’s commitment to helping the top 100 private companies achieve their strategic and financial goals. Maxworthy explains that the market has changed dramatically since the initial release of The Fintech Herd, with IPOs drying up and SPACs becoming a “bad word.” However, he believes that these uncertain times provide opportunities for companies to exit through acquisitions or to demonstrate their leadership in their market niche.
Aalap B. Merchant, Managing Director and Co-Head of the Technology Investment Banking Group at D.A. Davidson, highlights the challenges faced by FinTech companies over the past year and how they have shifted their focus to capital efficiency and profitability. Despite limited financing activity, there remains significant pent-up IPO demand and creativity from cross-over investors.
Key findings from The FinTech Herd 2023 include the fact that these companies raised over $34 billion in aggregate across all previous financing rounds, with a significant decrease in the number of transactions compared to the previous year. The report also emphasizes the need for nascent businesses to focus on cash preservation efforts and highlights the funding amounts in each round for companies that have reached their Series F financing. Furthermore, it reveals that more than half of the companies featured in The FinTech Herd 2023 were founded less than 10 years ago.
The report is available for download from D.A. Davidson’s website for those interested in learning more about the top 100 privately-held financial technology companies in the U.S.
D.A. Davidson’s Technology Investment Banking Group offers a global platform to connect leading-edge companies with innovative sources of capital and strategic partnerships. They serve clients in various sectors of the technology ecosystem, including all financial technology sub-sectors, Application/Vertical Software, Digital Media and Marketing Technology, eCommerce/eRetail, Education Technology, Enterprise IT, HR Tech, Blockchain, Legal Tech, Managed Services, Outsourced/IT Solutions, and Cyber Security.
D.A. Davidson Companies, an employee-owned financial services firm, offers a range of financial services and advice to individuals, corporations, institutions, and municipalities nationwide. The company has various subsidiaries, including D.A. Davidson & Co., Davidson Investment Advisors, and D.A. Davidson Trust Company.
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