NEWSLETTER of February 23, 2024

The following content has been added at finexpert:

KPMG
PULSE OF FINTECH: H2 2023
2023 was a difficult year for the fintech market globally, with both total fintech investment ($113.7 billion) and the number of fintech deals (4,547) experiencing their weakest results since 2017. A storm of global challenges — from the high interest rate environment and stubbornly high inflation in many jurisdictions, to conflicts in the Ukraine and Middle East — combined with concerns about valuations and the barren exit environment, saw fintech investors becoming increasingly cautious with their investments. >more

Oliver Wyman
ONLINE-WERTPAPIER-BROKERAGE 2024
The interest of private households in securities remains high: between the end of 2020 and July 2023, more than 5 million securities accounts were added, a growth of more than 20%. The industry now generates annual income of almost EUR 2 billion, with almost 7 million self-directed investors in Germany. Neobrokers and (ETF) savings plans in particular play a significant role in this. At the same time, the market is facing profound change. Although the market continues to grow, inflation and rising interest rates have weakened this growth. In 2023, neobrokers accounted for 40% of transactions, with savings plans accounting for a third of transactions. >more

Alix Partners
2024 ALIXPARTNERS DISRUPTION INDEX
AlixPartners has worked with clients around the world for more than forty years, helping businesses respond to disruptive challenges when everything is on the line. In our findings from the 5th annual AlixPartners Disruption Index, based on a survey of 3,100 senior executives around the world, we look at the challenges those executives identify, as well as the behaviors of those companies that are thriving in this disrupted world. The results show that companies are beginning to develop the mindset, tools, and resources to address these issues. However, this environment is also transforming how (and how quickly) businesses win and lose. >more

Oliver Wyman
THE NEW MONETARY ORDER: EUROPEAN PERSPECTIVES 2024
In Europe, bank balance sheets remained stable and de-risked and return on assets declined, impacting bank profitability. Non-bank financial institutions assumed a more important role as financers, gaining market share in lending from banks and holding the riskier (and more profitable) part of the assets. Central bank balance sheets quadrupled, and governments took advantage of low rates to raise record levels of debt to fund reforms, social expenditures, and economic stimulus measures needed to navigate multiple crises. >more

INVESTMENT WHEN NEW CAPITAL IS HARD TO FIND
Olivier Darmouni, and Andrew Sutherland
2023
We examine how a fixed capital supply shortage affects firm investment. Using equipment transaction-level data, we find pandemic-driven production disruptions significantly altered capital reallocation patterns across firms. A surge in used capital trading activity softened the investment decline, as firms acquired used capital from distant and dissimilar counterparts. Younger firms were disproportionately affected even though they rarely purchase new capital: while in normal times older firms sell their capital to younger firms, following a supply shortage, older firms compete for used capital, pricing out younger firms. Our evidence highlights the crucial role of secondary markets and distributive externalities for corporate investment. >more

COMMON VENTURE CAPITAL INVESTORS AND STARTUP GROWTH
Ofer Eldar, and Jillian Grennan
2023
We exploit the staggered introduction of liability waivers when investors hold stakes in conflicting business opportunities as a shock to venture capital (VC) investment and director networks. After the law changes, we find increases in within-industry VC investment and common directors serving on startup boards. Despite the potential for rent extraction, same-industry startups inside VC portfolios benefit by raising more capital, failing less, and exiting more successfully. VC directors serving on other startup boards are the primary mechanism associated with positive outcomes, consistent with common VC investment facilitating informational exchanges in VC portfolios. >more