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Fabric Fold: Is Your Valuation Too High?

Laurel Mintz, GP

Are you a fintech founder? If so, this question is for you: is your valuation too high?

We are seeing a real shift in terms of valuations across the board in VC land. But specifically, as it relates to fin tech start ups, I think historically, in the last few years, people were throwing kind of dumb money at dumb valuations. And now what we're seeing are discount rounds and down round specifically in the Fintech space. So you really need to ask yourself is your valuation too high.

The reason you wanna ask yourself that is are you pushing people like me who are smaller checks who are still interested in participating and supporting you? But not of these blown up valuations. Are you pushing us out of your market? So much money is in the fintech sector that they created this kind of false idea of what valuations should be at this point. And so I think what we're seeing is a drop in fintech investments because the valuations haven't normalized yet.

So make sure you ask yourself this question and don't get left in the cash flow dust.