Investors are betting that consumer trading of equity and crypto is rebounding and are consequently pushing the value of some former startups higher.
For a great number of private fintech startups that operate businesses similar to companies like Coinbase and Robinhood, this is great news. Consumer trading platforms have historically generated much of their revenue from trading, and more trading activity in turn leads to healthier businesses. And for startups that have yet to reach self-sufficiency, more revenue is a potential lifeline and a feather in the cap when they go out to raise more capital.