I’ve just been reading The Times’ story about Funding Circle. (paywall but you can read 2 free articles a month if you register for an account)
A year after floating at £1.75 billion, Funding Circle’s is valued at £370 million - just £100 million more than its cash reserves
The valuation sounds overly negative to me, although I can’t think of a suitable benchmark to compare them to, off the top of my head.
One of the main reasons for the fall in their share price is -
In July, Funding Circle sliced forecasts for its revenue growth by half, saying Brexit-driven economic uncertainty had damaged demand for loans. It also said at the time that it had tightened lending to “higher-risk-band businesses”, including start-ups and very small companies. The move is expected to slow the company’s growth but protect returns for investors.
Now one of the co-founders is going to step down.
I’m curious to hear what other people think of their prospects now. It’s a shame to see one of the most recent FinTech IPOs end up like this.