Valuations of fintech companies have become " frothy " , detached from the underlying business performance , according to Andy Stewart , co - founder at fintech - focused investment company Motive ventures . He attributes the frothy valuations to the success of previous fintech firms and the amount of capital that 's invested in the sector . Rather than funding start - ups with a big block of capital , he suggests venture capital firms could be more creative with their investments by layering capital over time , adding that opportunities for investors can be found in start - ups ' later development stages , or in buyout transactions .
Valuations of fintech companies have become "frothy", detached from the underlying business performance, according to Andy Stewart, co-founder at fintech-focused investment company Motive Partners. He attributes the frothy valuations to the success of previous fintech firms and the amount of capital that's invested in the sector. Rather than funding start-ups with a big block of capital, he suggests venture capital firms could be more creative with their investment by layering capital over time, adding that opportunities for investors can be found in start-ups' later transformation stages, or in buyout transactions.