{"id":1244286,"date":"2022-11-05T02:52:45","date_gmt":"2022-11-05T02:52:45","guid":{"rendered":"https:\/\/www.ghanamma.com\/2022\/11\/05\/vcs-decipher-the-recent-fintech-layoffs-and-why-theyre-happening-now\/"},"modified":"2022-11-05T02:52:45","modified_gmt":"2022-11-05T02:52:45","slug":"vcs-decipher-the-recent-fintech-layoffs-and-why-theyre-happening-now","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2022\/11\/05\/vcs-decipher-the-recent-fintech-layoffs-and-why-theyre-happening-now\/","title":{"rendered":"VCs decipher the recent fintech layoffs \u2014 and why they&#8217;re happening now \u2022"},"content":{"rendered":"<p><\/p>\n<div>\n<p id=\"speakable-summary\"><span class=\"featured__span-first-words\">Many big companies<\/span> in the fintech world cut jobs in the past month. And yet Stripe\u2019s announcement it would lay off 14% of its workforce still made a splash, proving that unicorns and decacorns are not immune to the challenging economic and fundraising conditions.<\/p>\n<p>The Stripe news closely follows Chime confirming this week that 12% of its employees would be laid off and Brex revealing last month that it was cutting 11% of its workforce.<\/p>\n<p>So what the heck is going on here? Well, according to <a href=\"https:\/\/twitter.com\/SpirosMargaris\" target=\"_blank\" rel=\"noopener\">Spiros Margaris<\/a>, a fintech venture capitalist and founder of Margaris Ventures, the current layoffs by some of these larger fintech companies were \u201ccaused by the challenging geopolitical market environment and inflationary pressures. It affects the whole fintech startup industry \u2014 and globally all industries \u2014 since the prominent players have a strategic ripple effect on the smaller players.\u201d<\/p>\n<div class=\"article-block block--pullout block--right\">\n<blockquote>\n<p>\n\t\t\t\u201cLaying off good employees endangers their strategy to succeed in the grand vision they initially sold to the VC.\u201d\t\t\t\t\t\t\t<cite>Spiros Margaris, founder, Margaris Ventures<\/cite>\n\t\t\t\t\t<\/p>\n<\/blockquote>\n<\/div>\n<p><a href=\"https:\/\/twitter.com\/cameronpeake\" target=\"_blank\" rel=\"noopener\">Cameron Peake<\/a>, a partner at Restive Ventures who recently invested in AiPrise, concurred, noting via email that much of what we are seeing today \u201cwere the dynamics we saw play out last year,\u201d including all of the \u201clarge funding rounds, sunny market projections and a belief that companies needed more people to fuel their growth.\u201d<\/p>\n<p>What resulted was \u201ca lack of discipline around company fundamentals,\u201d she added. While the frenzy was dissipating, it was then that companies \u201crealized they were not only ahead of their skis but that they needed to cut back in order to focus more on profitability,\u201d she said.<\/p>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Many big companies in the fintech world cut jobs in the past month. And yet Stripe\u2019s announcement it would lay off 14% of its workforce still made a splash, proving that unicorns and decacorns are not immune to the challenging economic and fundraising conditions. The Stripe news closely follows Chime confirming this week that 12% [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1244288,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[],"class_list":["post-1244286","post","type-post","status-publish","format-standard","has-post-thumbnail","category-celebrity-gossip"],"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1244286","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/comments?post=1244286"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1244286\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/media?parent=1244286"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/categories?post=1244286"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/tags?post=1244286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}