Fintech firms may struggle to find investor love in rebounding U.S. IPO market
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March 8 (Reuters) - The once high-flying fintech startups looking to go public will have a hard time attracting investor attention, even though a freeze that has gripped the market for new listings is starting to thaw.
Activities related to initial public offerings (IPO) in the United States came to a standstill for more than a year as the U.S. Federal Reserve's aggressive monetary-tightening policy sucked out easy money from the system.
The cautious mood in the market has meant that mostly those startups that are backed by solid fundamentals and steady revenue streams have dared to go public, with roughly 24 companies listing their shares this year and about 140 filing for IPOs.
As investor confidence improves, more companies are expected to reignite their IPO plans this year, but fintech firms may opt out of the race as they face a string of worries, including rising cash-burn rate, mounting losses and poor share performance of some of their listed peers.
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