Brex’s efforts to reduce cash burn | TechCrunch

Welcome to TechCrunch Fintech (formerly The Interchange)! In this issue, I’ll take a look at Brex’s latest round of layoffs, the state of fintech investing in 2023, and more! I may be taking some time off over the next few weeks, but don’t worry, TechCrunch isn’t going away. We will be back soon!

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big story

What goes up must come down. For spend management startup Brex, that’s the headcount. Although interest rates were lower, the company’s business grew and venture capital funding became more readily available. Its headcount has swelled to approximately 1,300 layoffs by October 2022. As things progress, the UK is attempting a Brexit reset, with 282 staff, or nearly 20% of its workforce, announced this week in a restructuring. The move comes after reports emerged. The company burned through $17 million in cash per month in the fourth quarter and is struggling to preserve its runway.

Analysis of the week

Fintech, oh, fintech. Last year wasn’t easy for you. According to the data, fintech investors injected US$34.6 billion into new startups in 2,055 transactions in 2023, representing year-on-year decreases of –43.8% and –32.4% respectively. brochure dataValuations are also mostly down, with a median of $19.4 million, down –13% from the 2022 median. Exits have also fallen significantly, with just $5.9 billion in exit value generated across 185 deals in 2023, down –76.1% and –22.3% year-over-year respectively. But the fourth quarter was good.according to CB InsightsFintech added eight new unicorns during the period, and equity funding grew by double-digit percentages.

dollars and cents

birt rewardIts platform is designed to allow consumers to earn rewards on rent and everyday community purchases, the company announced last week Raised US$200 million, valued at US$3.1 billionGeneral Catalyst led the financing, which values ​​the New York-based company at more than Raise $150 million in October 2022In an environment where large funding rounds (deals worth over $100 million) are few and far between, this jump in funding and valuation is impressive. CB Insights 2023 Risk State Report The study found that while large rounds “were a hallmark of 2021, with more than 350 taking place each quarter… in Q4’23, that number dropped to 78 – the lowest level since 2017.”

What else should we write?

Swedish fintech company Klarna announces First subscription plan“Klarna Plus”, $7.99 per month, comes with benefits such as no additional service fees when using Klarna’s one-time card, double bonus points and access to exclusive discounts on popular brands.

A New list compiled by GGV US Focus on 50 new financial technology startups that venture capitalists consider hot.We also Interview with Tong Shihao, Managing Partner of GGV Capital About what he sees in the industry today.

PayPal will start Pilot some upcoming service updates, some of which will leverage artificial intelligence-driven personalization. The company is launching a new “CashPass” cash back product called “Smart Receipts,” which includes personalized recommendations and more.

Other high profile headlines

Rainbow raises $12 million

Sequence raises $5.5 million in funding

Sunbit secures US$310 million in debt warehouse financing led by Citi

Investment platform Public launches options trading and pays customers for orders

Colombian financial technology company FinZi has been acquired by Girasol Payment Solution

BillingPlatform secures $90 million in growth equity investment from FTV Capital

Plaid CEO’s predictions for fintech

Follow me on X @bayareawriter Breaking news about fintech, posts about coffee, and more.

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