The majority of our fintech cohorts underperformed the market in Q3 2023. However, the neobanks, brokers, and crypto group as well as high-growth fintech delivered median returns of 12.3% and 19.1%, respectively, during the quarter, outpacing the S&P 500’s -0.4% and the Nasdaq’s 2.0% returns. Not all high-growth companies performed well, however, as the median return for high-growth payments companies trailed at -9.8%.IPOs drag and some SPACs outperform: Returns for recent fintech and payment IPOs were -5.3% in Q3 2023, underperforming the S&P 500 and the Nasdaq. Conversely, shares of recent fintech and payment SPACs significantly outperformed in Q3, returning 10.0%. SPAC outperformance was primarily driven by the increase in share prices for MoneyLion (131.2%), Pagaya (40.2%), and Dave (32.3%), though Q2 2023 results from these companies were mixed. Still, not all SPACs have performed well, as illustrated by the -97.1% plummet in Better.com’s shares since merging with its SPAC partner Aurora. Investors still value quality and profitability, and IPOs have still outperformed SPACs YTD returning 34.5% versus 14.8% for SPACs