Synapse’s collapse could spell trouble for nearly 100 fintech startups | TechCrunch Minute

The fintech company synapse has Officially collapsed synaps provided Banking services to other companies Mostly other fintechs which means that It's failure has wider reaching Implications for the other businesses That relied on it last year synaps laid Off 40% of its staff and this April it Filed for chapter 11 bankruptcy the Company tried to sell its assets for $9.7 million to another fintech tabapay But tabapay didn't do the deal that's a Huge blow because synaps raised over 50 Million in VC including a 33 million Series B led by inre and Horwitz Pitchbook estimated that the company was Valued at 180 million after the raise From a16z and if we run with that number Then basically synapse tried to sell Itself for less than 5% of what it was Once worth yikes now the companies that Used synapse are caught up in its Downfall it's like janga where if one Brick comes loose then the others just Kind of tumble too as Tech crunch senior Reporter and Equity co-host Maran Oedo Reported a teen banking startup called Copper had to discontinue both banking Deposits and its debit card accounts That means that copper customers lost Access to their money and even though The company is working to make sure they Get their money back it's still kind of A big deal if your debit card account

Just stops working something similar Happened at the crypto app Juno a Teacher from Maryland Chris buckler said In a filing quote I am increasingly Desperate and don't know where to turn I Have nearly $38,000 tied up as a result of the Halting of transaction processing this Money took years to save up mainvest a Fintech lender for restaurant businesses Had to shut down altogether if that's Not bad enough of course customers can't Even access their funds in the meantime According to synapsis filings as many as 100 fintech companies and 10 million Customers could be impacted but a Fintech industry expert Jason mikula Told Tech crunch that the real number of People impacted might be even higher Some of those customers do things like Running payrolls for small businesses as Usual when Silicon Valley companies Implode ordinary people get caught in The crossfire Maryanne said that this Isn't a sign of Doom for all banking as A service companies but it should be a Sign that you can't cut Corners when it Comes to compliance I think we've Learned by now that move fast and break Things rarely works but I would propose Move at a reasonable pace and grow your Company without RIS severe risk to your Customers