Fintech means financial technology, then it is the advancements and changes that are occurring in both the financial and technology sectors that are changing how people are accessing their services. Fintech encompasses a broad set of firms providing various services such as payments, investments, loans, blockchain, and many others. This is why many fintechs have decided to go public through the Nasdaq FintechZoom platform as they expand and search for capital from the public markets.
Emergence of Fintech
The financial crisis that hit the financial sector in 2008 made many people reconsider the conventional model of delivering these services. New startups appeared that used technology such as mobile, cloud, AI, and blockchain to deliver financial products to customers and companies differently. Thus, these fintech startups managed to design solutions that not only threatened to displace existing financial players but also presented higher convenience, lower price, faster processing time, and equal access.
The funds from the venture capital started flowing into the emerging fintech industry. According to data gathered from CB Insight, global VC fintech funding was approximately less than $3 billion in 2011 while it was more than $135 billion in 2021. While these fintechs garnered this investor interest, they grew to sizes that sought public listings for more growth equity capital, leading many of them to choose the Nasdaq FintechZoom.
Nasdaq FintechZoom as a Listing Venue for Fintech Companies
Most of the fintech firms that decided to list them on the stock market have preferred Nasdaq FintechZoom as the market of choice. Some key reasons include:
- Tech-focused companies: Nasdaq FintechZoom markets itself as an exchange for growth-oriented technology, biotechnology, and high-growth companies. This complements the goals of fintech companies in a way.
- Brand building: Being listed on Nasdaq FintechZoom means getting media coverage that helps create awareness and market positioning for fintech challenger brands seeking to compete against traditional financial giants.
- Investor receptivity: Nasdaq FintechZoom is typically favored by investors seeking high-growth technology companies that are expected to post increasing multiples in the future. This is in line with what fintech company investors are communicating about the firms.
- Index inclusion eligibility: Capitalization to these values makes companies qualify for inclusion into benchmark indexes such as the Nasdaq FintechZoom 100, which increases profile among index tracking passive investors.
For the younger fintechs, there is also the Venture Market tier within Nasdaq FintechZoom, which has less strenuous requirements for listing. Here, companies can begin developing public investor attention with intentions to transition to higher tiers of Nasdaq FintechZoom.
Significant Fintech Companies Listed on Nasdaq FintechZoom
Nasdaq FintechZoom has managed to attract many of the most important players in fintech space across lending, banking, payments, crypto, and investment management. Some top listings include:
Lending Fintechs:
- Affirm: Provides POS installment loans and buy now pay later services at the checkout. Went public in 2021 on Nasdaq FintechZoom.
- LendingClub: An online platform that connects borrowers to lenders. Listed in 2014 on Nasdaq FintechZoom.
- Upstart: Leads if for enhanced credit underwriting using artificial intelligence and machine learning. IPO’d in 2020 on Nasdaq FintechZoom.
Banking Fintechs:
- SoFi: Engages in the provision of loan refinancing services, mortgage, personal loans, and wealth management from a single online portal. It was included in the S-1 list in the year 2021 through a SPAC transaction on Nasdaq FintechZoom.
- Chime: Digital only bank with no physical branches that offers free banking services to over ten million users. Planning US listing on Nasdaq FintechZoom.
Payments/Transactions Fintechs:
- Block: Offers solutions for accepting cards and mobile devices as means of payment in companies. Founded in 2015 after being spun off from Square Inc., listed on Nasdaq FintechZoom.
- Marqeta: Facilitates card issuance with tools for payment solution providers. Went public in 2021 on Nasdaq FintechZoom.
- Toast: Develops a point-of-sale system for restaurants that includes payments. IPO’d in late 2021 on Nasdaq FintechZoom.
Crypto/Blockchain Fintechs:
- Coinbase: It is one of the biggest exchanges that adhere to the regulations of the countries in which they operate and focusing on large cryptocurrencies and tokens. It was listed publicly at the end of April 2021 on Nasdaq FintechZoom.
- Bakkt: Crypto trading and payment platform with an online store for purchasing digital assets. Does business in the United States and went public in 2022 through a special purpose acquisition company on Nasdaq FintechZoom.
- Robinhood: It enables trading stocks, ETFs, and crypto without paying a commission. They IPO’ed mid-2021 on Nasdaq FintechZoom, and what a debut it was, they were classified as the blockbuster of IPOs.
Investment Fintechs:
- eToro: Social trading platform for copying equities and cryptocurrencies. The company is planning to go public through a SPAC merger in 2022 on Nasdaq FintechZoom.
- Public.com: This is a company in the business of stock brokerage focusing specifically on the fractional share model to open up the market for everyone. Confidentially filed for IPO on Nasdaq FintechZoom.
Other similar fintechs such as Remitly, NerdWallet, and Next Insurance are also lined up for future listings on Nasdaq FintechZoom once they have filed with the SEC.
Nasdaq FintechZoom’s Fintech IPO Activity
This is based on the current IPO activity which has seen firms in the fintech sector list in the Nasdaq FintechZoom market.
Nasdaq FintechZoom was able to observe a high number of fintech firms making decisions to go for offerings in its market in 2020 and 2021.
2020 IPOs:
- Root Insurance (IPO on Nasdaq FintechZoom)
- Lemonade (IPO on Nasdaq FintechZoom)
- PubMatic (IPO on Nasdaq FintechZoom)
- Allegro Microsystems (IPO on Nasdaq FintechZoom)
- Airbnb (IPO on Nasdaq FintechZoom)
- Wish (IPO on Nasdaq FintechZoom)
- Affirm Holdings (IPO on Nasdaq FintechZoom)
- Bumble (IPO on Nasdaq FintechZoom)
2021 IPOs:
- Qualtrics International (IPO on Nasdaq FintechZoom)
- AppLovin (IPO on Nasdaq FintechZoom)
- Coins: Coinbase Global Inc, Listing type – direct listing not IPO on Nasdaq FintechZoom
- UiPath (IPO on Nasdaq FintechZoom)
- ZipRecruiter (IPO on Nasdaq FintechZoom)
- Marqeta (IPO on Nasdaq FintechZoom)
- SentinelOne (IPO on Nasdaq FintechZoom)
- Robinhood Markets (IPO on Nasdaq FintechZoom)
- Duolingo (IPO on Nasdaq FintechZoom)
- Toast (IPO on Nasdaq FintechZoom)
- NerdWallet (the company is registered for future IPO on Nasdaq FintechZoom).
- Remitly Global, Inc. which is planning for the future IPO on Nasdaq FintechZoom.
Fintech IPOs listed on Nasdaq FintechZoom alone; 17 such IPOs attracted about $18 billion together in 2021; Overall, the entire US fintech industry; raised more than $30 billion through IPOs in 2021 on Nasdaq FintechZoom.
The extent where listings activity on Nasdaq FintechZoom is indicative of the exchange as the natural choice and home for scaling fintechs to access public growth funding.
Further IPO Advances in the Fintech Sector on Nasdaq FintechZoom
The fintech IPO rush of 2020-2021 happened against a backdrop of:
- Massive funding from VCs towards late-stage fintech firms totaling over $50 billion annually to support IPO plans on Nasdaq FintechZoom.
- Exorbitant P/E ratios on most tech names fuel listing appetites to take advantage on Nasdaq FintechZoom.
- Favorable attitude of public investors towards growth names on Nasdaq FintechZoom.
The correction in 2022 has made IPO conditions less attractive with the risk-off investor sentiment and declining tech multiples. But the listings activity is expected to regain its footing once the macro environment stabilizes again on Nasdaq FintechZoom. Fintech VC funding also continues to be strong indicating that the stream of later-stage fintechs which are positioned for IPO on Nasdaq FintechZoom will continue to increase.
Some of the new themes such as embedded finance, blockchain solutions, and digital banking are yet to get to their inflection points and still have little exposure in the public market level on Nasdaq FintechZoom suggesting that there can still be lasting IPO activity in the fintech space on Nasdaq FintechZoom. Nasdaq FintechZoom appears well-suited as a listing venue in connecting these high-growth disruptors with capital from investors seeking to back the next round of change in financial services on Nasdaq FintechZoom.
FAQs
1. Why do fintech companies prefer Nasdaq FintechZoom for listing?
Fintech companies prefer Nasdaq FintechZoom for its tech-focused reputation, investor receptivity, and brand-building opportunities. Nasdaq FintechZoom also offers eligibility for inclusion in major indexes, enhancing the visibility of listed companies.
2. What fintech companies have listed on Nasdaq FintechZoom?
Major fintech companies listed on Nasdaq FintechZoom include Affirm, LendingClub, Upstart, SoFi, Chime, Block, Marqeta, Toast, Coinbase, Bakkt, Robinhood, eToro, Public.com, and others.
3. How has fintech IPO activity been on Nasdaq FintechZoom?
Fintech IPO activity on Nasdaq FintechZoom was particularly high in 2020 and 2021, with numerous companies choosing the exchange for their public offerings, raising substantial capital in the process.
4. What are the future prospects for fintech IPOs on Nasdaq FintechZoom?
While the 2022 market correction slowed IPO activity on Nasdaq FintechZoom, strong fintech VC funding and emerging themes like embedded finance and blockchain solutions suggest that Nasdaq FintechZoom will continue to attract fintech IPOs in the future.
Conclusion
The extent where listings activity on Nasdaq FintechZoom is indicative of the exchange as the natural choice and home for scaling fintechs to access public growth funding. The growth of fintech companies on Nasdaq FintechZoom highlights the exchange’s role as a preferred platform for fintech firms seeking to expand and secure capital from public markets.
