Note from the CEO: A very good article on startup fintech companies (Unicorns) finding out that (gasp) they will all not be the huge success they imagined. Each unicorn is formed as a great idea to “disrupt” an existing business that has not kept up with new trends/technology, but existing businesses are entrenched and may make better partners than targets for replacement. FintekNews wants to be the next Bloomberg BUT is the WSJ wants to buy us……………hello partner.
“I was chatting about unicorns recently. I won’t say which one we talked about, but one specific firm was being picked on as unsustainable and incorrectly valued. I was particularly surprised to hear that their cost of customer acquisition is estimated to be $400 per customer. For a startup firm that’s dealing in high-volume, low-cost transactions (a small clue), that’s a shocker if true.
We’ve already seen some unicorns stumble of late – Lending Club, Powa, Monetize – and there will be more. In fact, there will be a large number of dead unicorns. In January, I said….’Some are already predicting a landscape full of dead unicorns. I’m not one of them, but it’s quite clear that so many will not survive.'”