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The Billion-Dollar Fintech Club (private companies)

By Jim Bruene on January 23, 2014 6:09 PM | Comments

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With Stripe raising $80 million at a $1.75 billion valuation yesterday, I was wondering how many other private fintech companies have reached that milestone recently. It's not as many as I had hoped, but perhaps I'm missing a few. If so, please tweet @netbanker or email me since blog comments are broken (new system coming in Q1, really). 

Pretty sure:

  • Square valued at $5 billion this month (Techcrunch)
  • Lending Club valued at $2.3 bil in late 2013 (Bloomberg)
  • Wonga has been discussed as a billion-plus company for several years and has annual profit in excess of $100 million (in Sep 2013 Wonga reportedly turned down a $1.6+ billion bid  Sky.com post)
  • Stripe valued at $1.75 billion as of yesterday (Reuters)

Likely:

  • Klarna the Swedish ecommerce giant has raised $250 mil and has a $200 million annual revenue run rate; it recently made a 9-figure acquisition of Sofort (Techcrunch, 18 Dec 2013)

On their way (based on recent fundings):

  • Cardlytics has raised more $100 million and reported a $200 million annual run rate in Q4 2013
  • Credit Karma raised a $30-million series B in April to further its ad-driven free credit report business, which is one of the busiest financial websites and most popular iPhone app (other than the big retail banks) (Finovate post)
  • On Deck Capital raised $42 million in early 2013, bringing the total to $102 million, and projected $80 to $100 million in revenues for 2013 (Venturewire)
  • Paydiant has raised more than $30 million and is powering payments via Subway's mobile app; looking at Stripe's $1.7 bil valuation, it seems plausible that Paydiant is closing in on the billion mark
  • Ping Identity -- it can be hard to evaluate security plays because there often isn't much transparency into their traction, but based on Ping's $78 mil raised, including $44 mil in July ($15 mil of that was debt), they must be doing something very right (Finovate post)
  • Prosper had one-quarter of Lending Club's loan-origination volume in December, making them potentially worth more than $500 million based on the Lending Club $2+ bil valuation
  • Sofi, with $300 million lent to prestige college grads, it could be the Lending Club of high-income 20- and 30-somethings

Made it (recently went public/acquired):

  • Xero, the New Zealand-based cloud accounting company, is valued at US$4 bil on NZ market
  • Qiwi PLC, the Russian payment giant, went public in May 2013 and is currently valued at $2 bil (Nasdaq)
  • Lifelock went public in Oct 2012 and is currently worth $1.8 billion, it recently acquired Lemon to bolster its mobile identity-protection services
  • Trusteer, the online security company, sold to IBM for $1 billion in 2013
  • Climate Corp (formerly Weatherbill), a weather insurance play, sold to Monsanto for $930 mil in Oct 2013 after raising $107 mil (Forbes)
  • Braintree sold to PayPal for $800 million, $200 mil shy of the "club," but not too shabby

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Picture credit: Fakemillion.com

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