VC investors have exhibited a voracious appetite for alternative lenders over the past decade, believing these fintech companies offer the best chance to loosen the grip incumbent financial institutions have held on the lending industry. But despite investor optimism and elevated enterprise valuations, alternative lenders have not seen the same success in public markets. This analyst note examines valuation trends, multiples and public market performances to account for public investors’ reluctance and ruminates on the future of alternative lenders currently in the IPO pipeline.
