The fintech sector has had its ups and downs as of late, with Klarna experiencing hefty valuation cuts, Fast shutting down, and Robinhood and Better conducting mass layoffs. Despite the market turbulence, investors remain bullish on the potential value that financial technology startups can bring worldwide.
To understand how fintech startups are preparing to weather the current downturn, we talked to eight investors who shared thoughts on the market as a whole – both today and in the future.
Most of the investors agreed that there is opportunity in a downturn and that a correction of sorts is actually not a bad thing.
“Despite the current market sentiment, our bias at Lightspeed points in the direction of optimism. That doesn’t mean we’re sugarcoating things for our founders – to be clear, the road ahead will be hard,” said Justin Overdorff, partner at Lightspeed Venture Partners. “But we see the silver lining for companies who don’t let a good crisis go to waste, revisit their assumptions on talent, cut non-essential activities, hone their business model, and consolidate their lead. Those who do survive whatever comes next will emerge stronger.”
The group also agreed th …
