The COVID Effect and Fintech Liquidity Gap
The COVID Effect and Fintech Liquidity GapAs has been said in many recent deal memos, the financial services industry is on the verge of the greatest revolution since the inception of electronic banking services. These KPIs demonstrate the turbulence in the global markets, which in turn will undoubtedly create liquidity constraints in venture capital and will accelerate fintech failures. A year from now, we will be looking at COVID as the trigger event that became the primary driver for the proliferation of fiat digital currencies and the “reset” of the fintech venture landscape. COVID will continue to materially affect M&A activity for the next 18 months, and venture capital investors will become more selective in their choices in order to preserve cash. Dealmaking In The FutureWhat is on the horizon is the fear and real possibility that hundreds of fintech companies will run out of money in 2020.