Public Markets Recover; Private Markets Lag

In 2023, public markets showed signs of recovery, with the F Prime FinTech index increasing by 110% despite being down 60% from its peak in 2021. While public markets stabilized, the IPO market remained closed and M&A activity reached a five-year low. In contrast, private markets continued to struggle without significant recovery, except for artificial intelligence investments. High-performing private companies could still raise funds, albeit with more challenges, while many startups faced difficulties, as evidenced by only 30% of Series A companies progressing to Series B funding. This reflects the overall distress in private markets and indicates the potential for shutdowns, showcasing a lagging recovery process.