D.A. Davidson’s Technology Group today released its second annual FinTech Herd report featuring the top 100 privately-held financial technology companies based in the U.S. All fall within D.A. Davidson’s core areas of expertise: Bank Tech, Capital Markets Tech, Consumer Finance Tech, Crypto & Blockchain, Data & Analytics, Insurance Tech, Payments Tech, Real Estate Tech, Regulatory Tech, Wealth Tech. These private companies were selected for their disruptive and innovative technology, growing market presence and overall notoriety within their respective sub-sectors.
“The FinTech Herd 2023 demonstrates our continued commitment to helping the top 100 private companies we see as having interesting technology or a differentiated market approach achieve their strategic and financial goals,” said Michael Maxworthy, Managing Director and Co-Head of the Technology Investment Banking Group at D.A. Davidson. “Since The Fintech Herd’s initial release, the market has changed dramatically: IPOs have dried up, SPACs have become a ‘bad word,’ and valuations have been on a roller coaster. These uncertain times also give companies time to exit through an acquisition by a larger strategic acquirer or high-profile financial sponsor and show why they are leading their market niche, why they are creating a new total addressable market, or why their product is faster, stronger and better than others. We expect similar stories to continue for more companies featured in the report over the next six to 12 months. It’s a fun time to be a Fintech banker.”
“Most of FinTech lived through a challenging period over the past year, including many of the top 100 private companies featured in The FinTech Herd 2023,” said Aalap B. Merchant, Managing Director and Co-Head of the Technology Investment Banking Group at D.A. Davidson. “Financing activity was limited as compared to previous years, forcing companies to re-think the ‘growth at all cost’ mantra that perpetuated through the ZIRP era and shifting focus to capital efficiency and profitability, leading many to re-evaluate their strategies. Significant pent-up IPO demand remains, and we expect continued creativity from cross-over investors throughout the course of the year.”
Many of The FinTech Herd 2023 constituents returned from last year’s list. A key reason for the repeated inclusion was a direct result of the changing market dynamic experienced in both 2022 and 2023, highlighting how constituents are staying private for longer. Although deal volume remains low, innovation continues to remain high.
Key findings include:
- Companies in The FinTech Herd 2023 raised more than $34 billion in aggregate across all previously disclosed financing rounds.
- The FinTech Herd 2023 constituents transacted significantly fewer times during 2022 relative to the year prior (124 vs. 73 transactions).
- Constituents waited a median of 15 months between their most recent rounds, highlighting the need across more nascent businesses to continue their cash preservation efforts.
- The median amount of funding in each round from Series A through Series F added up to $516 million for the 10 companies that have reached their Series F financing.
- 51% of The FinTech Herd 2023 was founded less than 10 years ago.
To download a copy of D.A. Davidson’s The FinTech Herd 2023, click here.
D.A. Davidson’s Technology Investment Banking Group has built a leading global platform by using our vertical expertise and extensive network across D.A. Davidson to connect leading-edge companies with innovative sources of capital and strategic partnerships. We serve clients across the technology ecosystem, including all financial technology sub-sectors (i.e., Bank Tech, Capital Markets Tech, Consumer Finance Tech, Crypto & Blockchain, Data & Analytics, Insurance Tech, Payments Tech, Real Estate Tech, Regulatory Tech, Wealth Tech), Application / Vertical Software, Digital Media and Marketing Technology, eCommerce / eRetail, Education Technology, Enterprise IT, HR Tech, Blockchain, Legal Tech, Managed Services, Outsourced / IT Solutions and Cyber Security. Drawing on our 20-plus years of experience and tapping into curated market maps and growth trends across the technology landscape, we help companies accelerate their growth and untapped potential.
Technology Investment Banking Contacts
Ken Marlin, Vice Chairman and Managing Director | kmarlin@dadco.com
Michael Maxworthy, Co-Head of Technology and Managing Director | mmaxworthy@dadco.com
Aalap Merchant, Co-Head of Technology and Managing Director | amerchant@dadco.com
Tom Selby, Managing Director | tselby@dadco.com
Adam Waite, Managing Director | awaite@dadco.com
Fred Johnson, Managing Director, Equity Capital Markets | fjohnson@dadco.com
Josh Nolan, Managing Director, Equity Capital Markets | jnolan@dadco.com
Al Sisca, Vice President | asisca@dadco.com
Jordan Wittbrot, Vice President | jwittbrot@dadco.com
Institutional Research Contacts
Pete Heckmann, CFA, Managing Director and Senior Research Analyst | pheckmann@dadco.com
Gil Luria, Managing Director and Technology Strategist | gluria@dadco.com
Matt Summerville, Managing Director and Senior Research Analyst | msummerville@dadco.com
About D.A. Davidson Companies
D.A. Davidson Companies is an employee-owned financial services firm offering a range of financial services and advice to individuals, corporations, institutions, and municipalities nationwide. Founded in 1935 with corporate headquarters in Great Falls, Montana, and regional headquarters in Denver, Los Angeles, New York, Omaha and Seattle, the company has approximately 1,575 employees and offices in 30 states.
Subsidiaries include D.A. Davidson & Co., a full-service investment firm providing wealth management, investment banking, equity and fixed income capital markets services, and advice; Davidson Investment Advisors, a professional asset management firm; and D.A. Davidson Trust Company, a trust and wealth management company.
For more information, visit dadavidson.com.
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Contacts
Media Contact
Emily Roy, Prosek for D.A. Davidson | (646) 818-9232 | eroy@prosek.com
