Private companies face challenges in valuation reset

Many private companies are struggling with valuations as the market experiences a valuation reset. Fintech companies, in particular, have faced difficulties as investor focus shifts towards growth with unit economics and efficiency. The crisis in the market has led to a decline in IPOs and challenges in raising funds for startups. Startups that have not achieved profitability or have raised large funding rounds at peak market valuations are finding it especially difficult. The situation has been further exacerbated by the changing exit comps and the need to right-size valuations across the board. The focus on profitability and cost control has become increasingly important, and companies that have achieved profitability have more options available to them. Overall, the market conditions are creating challenges for startups and venture firms, and a valuation reset is underway.