The corona pandemic has triggered a real surge in digitization.
It's not just grandma who suddenly masters video telephony.
Much more is paid by card and more is ordered online.
Fintechs in particular benefit from this - young companies that have specialized in the financial sector.
It is therefore only logical that they should be valued higher than before the crisis - their potential has become more evident.
But the fear of exaggeration is no coincidence: How justified is it that the British neobank Revolut, for example, is valued at 28 billion euros with earnings of just 260 million euros and a loss of almost 200 million euros? N26 will also increase significantly soon. You have to know that the valuation of a company not only indicates the current value, but also the expected value in the future. But then how do you price the future? In fact, Revolut's earnings are also rising sharply, and losses are factored in, especially in the first phase of companies.
This is also not a phenomenon of unlisted fintechs, Tesla is also valued higher on the stock exchange than the mere indicators would suggest. That is the price of the future: uncertainty because you don't know what it looks like. Only time will tell whether the evaluation is justified. Perhaps we are currently witnessing the birth of several global players. Or maybe a huge bubble is growing right now.