Welcome to For Millionaires Fintech (formerly The Interchange)! In this edition, I’m going to consider Brex’s round that is latest of layoffs, the state of fintech investing in 2023 and more! I may be taking some right time down in coming months but never worry, For Millionaires Fintech is not going away. We’ll be right back quickly!

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The big story

What goes up must come down. This was the case for its employee headcount for spend management startup Brex. While interest levels had been reduced, the ongoing company saw a bump in business and VC money was easier to come by. Its headcount had swelled to about 1,300 before it laid off staff in of 2022 october. As things attended down-to-earth, Brex is undertaking a reset, announcing this it cut 282 employees, or nearly 20% of its staff, in a restructuring week. The move came after reports the company burned $17 million in cash each month during the quarter that is fourth that its attempting to protect runway.

Analysis associated with the week

Fintech, oh, fintech. Final wasn’t easy on you year. Fintech investors injected $34.6 billion in startups across 2,055 deals in 2023, a –43.8% and –32.4% YoY drop, respectively, according to PitchBook data. Valuations also mostly dropped, with the median of $19.4 million, down –13% from 2022’s median. Exits also took a dive, with just $5.9 billion in exit value generated across 185 deals in 2023, a decrease of –76.1% and –22.3% YoY, respectively. But Q4 was a good one. According to CB Insights, fintech saw eight unicorns that are new the time and equity money enhance by double-digit percentages.

Dollars and dollars

Bilt incentives, whose system is designed to enable customers to make benefits on lease and neighborhood that is daily, announced last week that it raised $200 million at a $3.1 billion valuation. General Catalyst led the financing, which more than doubled the New company that is york–based valuation when compared with its $150 million October 2022 raise. The valuation and raise jump are impressive in an environment were mega-rounds (deals worth over $100 million) are few and far between. CB Insights’ State of Venture Report 2023 found that while mega-rounds “were a hallmark of 2021, with 350+ occurring each quarter . . . in Q4’23, that figure fell to just 78 — the lowest level since 2017.”

What else we’re writing

Swedish fintech company Klarna announced its first subscription plan, “Klarna Plus,” for $7.99 per month, featuring benefits like no added service fees when using Klarna’s One Time Card, double rewards points and access to exclusive discounts with popular brands.

A new list compiled by GGV US highlights 50 fintech startups venture capitalists think are hot stuff. We also spoke to GGV managing partner Hans Tung about what he’s seeing in the sector today.

PayPal will begin piloting a few new upcoming updates to its service, some of which will leverage personalization that is AI-driven. The organization is presenting a“CashPass that is new cash-back offering called “Smart Receipts,” with personalized recommendations, among other things.

Other high-interest headlines

Rainbow raises $12 million

Sequence raises $5.5M in funding

Sunbit Secures US$310m Debt Warehouse Facility led by Citi

Investing platform Public launches options trading—and pays customers for their orders

FinZi, the Colombian fintech company, has been acquired by Girasol Payment Solution

BillingPlatform lands $90m growth equity investment from FTV Capital

Fintech predictions from Plaid’s CEO

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