Lisa Maree Williams/Getty
Everyone likes money.
But technology that handles money is what’s really popular these days.
The rise of “fintech,” or, financial technology, has unleashed a new breed of apps, sites and services designed to help consumers pay for goods, get loans and manage their retirement accounts.
Fintech is a multi-billion dollar industry, with startups in the US raising around $ 18 billion since 2015, according to PitchBook and nearly 1,400 venture capitalist-backed deals. Two of the most valuable startups in the country — Stripe and SoFi — are in the fintech sector. And there are 11 fintech startups valued at more than $ 1 billion.
To get a sense of why fintech is so hot right now, we took a look at the 11 most valuable VC-funded US fintech startups, as compiled by PitchBook.
Like any fast-growing industry, fintech hasn’t been without its bumps. Some companies on the list have had layoffs and scaled back from their initial success. One in particular — SoFi — forced out its CEO over summer following allegations of sexual harassment at the company.
But all 11 startups have made a dent in the space and give credence to venture capital’s multi-billion dollar bet that fintech isn’t going away anytime soon. Here’s why:
11. Clover — $ 1.2 billion
Clover
Clover is valued at $ 1.2 billion since its $ 130 million financing round in June 2017.
Clover offers a cloud-based platform for processing credit cards both online and in-stores. The company works with large payment processors and hardware designers to develop digital payment stations — not unlike the cash registers of the olden days.
If you’ve ever bought a cup of coffee and thought the cashier set up seemed futuristic, it was probably a Clover product.
The company has raised a total of $ 8 million since it launched in 2014.
10. Kabbage — $ 1.3 billion
Glassdoor/Kabbage
Kabbage is valued at $ 1.3 billion, according to PitchBook estimates, thanks to a $ 250 million investment round in August 2017.
Founded in 2009, Kabbage is an automated lending platform for small businesses. It’s since raised $ 1.35 billion in investments and debt financing — making it the most well-funded startup in the state of Georgia.
The company currently has more than 100,000 clients, and has lent more than $ 3.5 billion to small and medium sized businesses since it launched.
9. Robinhood — $ 1.3 billion
Robinhood
Who said Robinhood only gives to the poor?
The zero-commission, US-focused stock brokerage is valued at $ 1.3 billion following a $ 110 million funding round in April 2017.
In total, Robinhood has raised $ 176 million, which is quite a lot considering the founders were initially rejected by 75 different venture capitalists.
Robinhood, which was founded in 2012, is popular with Millennials who appreciate the $ 0 commission fee on its trades. Despite rejecting the common revenue model of its legacy competitors like Charles Schwab and E*Trade, the company makes money on interest from dollars and cents left in its customer’s accounts, and it also offers a premium product called Robinhood Gold, which has additional perks, like extended trading hours, in exchange for a $ 6 monthly subscription fee.
See the rest of the story at Business Insider
