Why An Unsustainable Bubble Is Growing Inside Fintech

A bubble is forming in the fintech industry, characterized by a growing disparity between private and public company valuations. Private fintechs like Stripe and Ramp are achieving "nonsensical" valuations, far exceeding their public counterparts. Stripe, with $6.9 billion in net revenue in 2025, is valued at $159 billion privately, nearly five times Adyen, a close public competitor. Ramp, a corporate card company, announced $1 billion in annualized gross revenue in September 2025 and fetched a $32 billion valuation two months later, despite its net revenue likely being 40% lower. This trend is fueled by a broader shift towards private capital markets, with thousands of private equity firms and venture capitalists driving up valuations, especially in AI-focused areas. The collective market value of the top 10 largest private fintechs jumped 164% in the past year, compared to a 2% rise for the top 10 publicly traded fintechs. Many fintechs that have gone public recently have seen their stocks stagnate or slump, with only three of last year's 11 IPOs trading above their initial price. Skillfully crafted narratives around AI are a key driver. Stripe and Ramp promote AI agents and features, convincing investors of future growth.