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Komfie Manalo, Opalesque Asia:

The valuation of UK-based FinTechs after the Brexit vote can be questionable, said Philippe Paquet, managing director of Paris-based specialty investment manager NewAlpha Asset Management during the latest Opalesque 2016 France Roundtable.

Paquet told participants of the Roundtable, "My point here is that with what happened with that Brexit vote, obviously the valuation of UK-based FinTechs can be questionable. I don’t think that it is good for France, but certainly for the moment and short-term rather bad for UK startups."

He added that since NewAlpha launched a venture capital fund investing in FinTech startup companies in 2015, one of the things that he noticed was the wide dispersion between valuations of UK-based FinTechs and for example, France-based FinTechs. The value differential can be between two and five times for companies "on the same market, with the same offering, and on the same path." The only rationale for this difference would be that UK companies may be two or three years ahead than the French ones.

Paquet also put put a warning: "As you know, digitalization is based on the idea that the underlying market has no limits, no borders. So if you immediately set up again new borders, it raises the question about valuation. While there’s no point to applaud the UK’s decisio......................

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