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Why Fintech Startups Might Not Want to Become Unicorns

Think twice before crossing this threshold.

In mythology, unicorn sightings are blessed events. In fintech world, they might be increasingly ill-fated.

Striving to achieve a valuation of $1 billion or more may no longer be in a start-up's best interest, according to recent valuation trends and the venture capitalists who invest in the space. Fintech firms in particular are posing a headache for investors as rising valuations create a limbo-like state in which start-ups become too pricey for larger firms to buy, but don’t have business models that are scalable enough for a debut in the public markets.