While venture capital has been pouring into fintech startups, the exit door has also been pretty busy. According to a report by CB Insights, the first quarter of 2021 set a record not only for new investments in fintechs but also for exits, with 67 mergers and 11 fintechs going public, many through SPACs transactions (there was a ” Blank Check “Company takes money from the public and uses it to buy an operating company like a fintech).
Sales on the Advance Guide Fintech 50 list reflect this hot public market. Seven startups on the 2020 list have since gone public, so they are not eligible for the 2021 edition. (Advance Guide only considers privately held US-based companies or with significant US business.) Four of our graduates went public and two more chose the faster SPAC route. The seventh, Coinbase, took the unusual route of being directly listed on the stock exchange.
The 2021 list is also likely to have plenty of graduates, with one – Marqeta – slated to begin public trading this week via an IPO. (We don’t remove companies until they actually go public.) “All tech companies are finding ways to go public because there are a lot of investment funds wanting to invest in these companies,” said Robert Le, a senior analyst at Pitchbook. “If you look at the entire fundraising cycle, from the early phase of venture capital to the exit from the public market, there will be activities in this entire spectrum, at least for the next few years.”
Here are the seven:
As part of the booming “buy now, pay later” segment, it went public at $ 49 on Jan. 13 and ended the day 98% higher. Affirm’s stock is currently trading around $ 61, giving a market cap of $ 16 billion and co-founder and CEO Max Levchin a net worth of $ 1.6 billion. If the Advance Guide The Fintech 50 list for 2020 was released, Affirm had a private valuation of just $ 2.9 billion. But the segment (which includes list member Klarna from 2021, whose valuation of $ 31 billion makes it the second most valuable company on the list) soared during the pandemic as more purchases went online. Affirm particularly benefited from its deal with Peloton to fund the purchase of the expensive exercise bike, which became a hot commodity when the pandemic forced gyms to close.
Coinbase, the largest crypto exchange in the United States, listed its stock directly on NASDAQ on April 14, which was the largest direct listing ever. At one point on its first day of trading, it was briefly worth $ 105 billion. The stock closed that day at $ 328, a market cap of $ 86 billion. No surprise that Coinbase’s price has fallen with the price of Bitcoin; it is now trading at $ 231, which equates to a still hefty market cap of $ 60 billion. Coinbase won a spot on the Fintech 50 for the first time in 2016 and was valued at $ 8.1 billion in 2020, the last year on the list as a private company. Currently, Coinbase co-founder and CEO Brian Armstrong is worth $ 8.6 billion.
This New York-based company, aiming to revolutionize the traditional property insurance industry with a millennial-friendly app, went public last July and saw its price soar from $ 29 to $ 65 on opening day. It is now trading at $ 98, which equates to a market cap of $ 6 billion. Prior to its IPO debut, it was valued at $ 2.1 billion.
This San Francisco-based fintech enables home sellers to request a cash offer online and then list their homes on its platform. It went the SPAC route and was floated on the stock exchange on December 21 and traded as an OPEN. It currently has a market cap of $ 9.4 billion, compared to a private valuation of $ 3.8 billion on the 2020 Fintech 50 list.
This Ohio-based auto insurance fintech, which uses a smartphone app to qualify drivers and set their rates based on their driving behavior, went public on October 28th. Unlike other Fintech 50 graduates, its stock opened lower than the original offering price of $ 27. With its stock now trading below $ 10, it has a market cap of just $ 2.5 billion – below the $ 3.65 billion valuation it had on the list for 2020 as a private company. .
This San Francisco-based fintech started refinancing student loans in 2011 and has gradually grown into a one-stop shop offering loans, investments, a cash management account, credit card, and even insurance. It took advantage of the SPAC boom and went public on June 1st. Now trading as SOFI, it has a market capitalization of nearly $ 17 billion. When it was on the Fintech 50 list as a private company, it was valued at $ 4.3 billion.
This Silicon Valley lending firm, which uses artificial intelligence to draw personal loans, took the traditional IPO route when it went public on December 15. Its shares, which originally traded at $ 20, rose 47% on the first day of trading and are now trading at $ 170. That gives him a market cap of $ 13 billion, a staggering increase over his private company valuation of $ 750 million.