[Article] Funding in the Time of Coronavirus: How Fintech Startups are Surviving
Toan Huynh was featured in a recent article by Finance Magnates titled Funding in the Time of Corona: How Fintech Startups are Surviving. Below is an excerpt (for the full article, click on the link here).
…There’s almost no question that the economic fallout from the coronavirus could significantly impact the fintech funding landscape as a whole: Toan Huynh, Venture Partner at Information Venture Partners, a venture capital firm that specializes in fintech, told Finance Magnates that “there is no doubt that we will be talking about the ‘R’ word (recession) very soon.”
“There is no chance that the actions that will be needed to contain the virus will not have a dramatic impact on the economy. We will fall into a recession,” she said. “We have seen the beginnings of the adjustment in the public markets. What is incredible about the recent correction is that the market has adjusted before the negative economic news. It is pricing in expectations of an economic shock.”
Therefore, the outlook for companies in the early stages of growth is quite different now than it was a month ago: “as of just a few weeks ago, everything reflected the expectations of continued growth and healthy valuations,” Huynh said. “The markets have adjusted the valuation metrics to reflect more historical norms, but not yet the impact on revenue, cash flow or profitability (metrics).”