Fintech Valuations Valuations????? That very word is so subjective and open to discussion (actually, arguments) of what is high or low. So, are tech companies "overvalued or undervalued"? One relatively new investment company's managing partner makes a point that "anything that has machine learning, AI or blockchain in it" increases the valuation by 2x to 5x. I totally agree. Lets get markets to

EXPLODE upward with a name change; General Motors Blockchain, U.S. Steel Machine Learning, Shake Shack Artificial Intelligence, etc. Can you just see S&P 50,000?

"Valuations of financial technology companies are "frothy," according to one of the cofounder of a new fintech-focused investment company. Andy Stewart, a managing partner at Motive Partners, said at the International Fintech conference in London last week: "I would call valuations right now frothy in general... tech generally is frothy."

A frothy market is one where valuations become detached from the underlining performance of a business. Stewart said: "I think that's a result of the success of many of the financial technology companies out there, I think it's a result of the amount of capital that's flown in, if you look at the last two years you've had record amounts of capital flowing into financial technology."

Stewart complained that many companies were now latching on to buzzwords that were inflating their value. He said: "One thing that people have to be careful of is buzzwords. Anything that has machine learning in it or blockchain in it, the valuation goes up, 2, 3, 4, 5x. We've seen companies come back to us multiple times and originally it's an AML/KYC engine which looks pretty interesting. Then it turns out to be AML/KYC [anti-money laundering/know your customer] engine powered by machine learning and using blockchain, and it's a much more valuable company.

Motive is a relatively new player in the market, announcing itself at the start of the year. The new investment company, which has offices in London and New York, is aiming to raise a $1 billion... "

Source: BusinessInsider