The Toronto-based fintech co-founded by Michele Romanow is in advanced talks with investors on an equity deal that would value the company at US$200 million including the cash raised, a tenth of its previous US$2-billion valuation, The Globe and Mail reported, citing sources familiar with the matter. (The Globe and Mail)

Talking point: The recapitalization plan, which is not finalized, would be one of the biggest ever valuation wipeouts of a private Canadian tech company in dollar terms, according to The Globe. Based on the reported structure of the possible deal, Clearco’s effective valuation could be even lower than US$200 million. Tech valuations have been battered by high interest rates and economic uncertainty. Clearco is also one of many startups entangled in the failure of Silicon Valley Bank, with investors reportedly waiting on assurances a US$70 million line of credit will not be affected by the bank’s sale. Romanow stepped down as CEO of Clearco in January following a series of layoffs.