Business News Highlights: PE-VC Funds' 5x Gains from Fintech IPOs
Wednesday, 2 October 2024, 16:39
Business News on Fintech IPO Returns
In recent business news, private equity and venture capital (PE-VC) firms have reported impressive median returns of around 5x from fintech IPOs over an average holding period of 5-6 years. This finding comes from a detailed study conducted by JM Financial and Beams Fintech Fund.
Key Findings from the Study
- The participating companies included major players like PolicyBazaar, Paytm, Tracxn, Angel One, KFintech, CMS Info Systems, and Newgen.
- The measured returns align with industry expectations, showing consistency across various segments within the fintech sector.
- Investors indicated that these returns reflect substantial internal-rate-of-return (IRR) of over 30% for venture capital firms. A 30% IRR is considered a benchmark for technology investments, illustrating significant profitability.
These findings highlight an exciting trend in business news concerning the performance of PE-VC funds in the fintech space.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.