Why FinTech Companies Are Deciding to Stay Private

FinTech companies have good reasons to stay private these days. 2015 saw investments in FinTech companies increase more than 100%, encouraging FinTech companies to stay private longer. Social Finance raise $1 billion in multiple rounds. Additionally, public FinTech companies have had a tough time lately. LendingClub and OnDeck shares have fallen over 40% since its IPO and LoanDepot is putting its IPO on hold for now.

And Wall Street itself is another major investor in FinTech companies. The big banks such as Citigroup Inc. and Goldman Sachs Group Inc. have invested a significant amount several FinTech companies, including Square Inc. and Motif Investing Inc.

The trend is certainly encouraging many FinTech companies to stay private.

Source: Bloomberg
http://www.bloomberg.com/news/articles/2016-03-09/here-s-why-fintech-companies-are-opting-to-stay-private-funding-just-hit-a-record

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Ken Margolis | Managing Partner Castle Placement, LLC
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