The entrepreneurs of the tech industry have been dealt a difficult hand in recent months with headlines about investment cooldowns and mass layoffs. In this Macropay review, let us look into the very real valuation crisis in the tech space.
Drop in Funding
2022 is the record low year for investments in tech, since 2018. As seen throughout most recently available data sets from 2018 to 2022, there has been a consistent decline that started right after the pandemic hit and didn’t show any signs of slowing down until now.
Research firm CB Insights has said that there was an 18% drop in fintech funding between the last quarter of 2021 and the first of 2022. The fintech industry is growing increasingly concerned as investors put less money into the sector. This could be a sign that things are getting tight for startups and businesses, which would mean bad news for everyone involved.
Falling Stocks
Covid-19 was a game changer for the buy now, pay later industry. In years past social restrictions had been slowing down adoption of online shopping but this disaster accelerated it and helped propel BNPL’s popularity even further!
The fintech industry is currently facing an uphill battle. Apple and Microsoft have seen some relief, but other companies such as Meta have not had as much success with their business model choices due in part to larger macroeconomic trends that seem poised for prolongation by government policy changes around the world which could potentially dampen demand from potential investors or consumers who may choose differently should they see prices rise too quickly.
Mass Firing
The recent mass layoffs have sent shivers down the spine of many people, with fears that something is up in this sector.
Market volatility has been intense this year, and it’s not over yet. The coming months will be even worse for many companies as they continue to struggle in the face of decreasing demand from customers who are increasingly worried about their finances and are controlling their spending. The result? We may see more fintech businesses cutting staff because of the decreasing revenue.
Macropay In Review
Macropay is a fintech company that is experiencing success despite the downward trend in tech valuation. This is because of their cutting edge technology and essential services.
For more Macropay reviews and insights into important topics, keep tabs on their website: www.macropay.net
