Negative Fintech Landscape Providing Buying Opportunity?

Lately, LendingClub Corp LC and On Deck Capital Inc ONDK shares have been under scrutiny from much of the market for their business models. However, Bessemer Venture Partners Vice President Charles Birnbaum says regulators and journalists may have swung the pendulum too far in the bearish direction.

To better understand value of emerging lenders, Birnbaum said on TechCrunch this simple list can be applied across the non-bank, alternative-lending industry:

• Innovative underwriting
• Low-cost, capital-lite loan facilities
• Sustainable growth
• Cost of capital
• Valuation

While the market is experiencing "soberness" after a large amount of hype over the years, Birnbaum still believes many great companies can come from fintech. It could potentially even provide a buying opportunity, as negative sentiment leads to lowered valuations and potential opportunities will be overlooked.