FinTech companies continue to attract lots of attention from investors.
In 2018 alone, U.S. based FinTech companies raised a massive $12.4 billion from investors. They need the money, too. These businesses tend to burn through capital at 2-3 times the rate of other businesses due to regulatory requirements involved in this industry.
Fundraising in the FinTech sector wasn’t the only source of investment in 2018. Transactions related to mergers and acquisitions accounting for $52.5 billion.
Here are the 5 most valuable FinTech companies in the U.S right now and how much each of them are worth.
1) Stripe – $22.5 billion
What is Stripe?
Founded by Patrick and John Collison in Ireland and currently based in San Francisco, California, Stripe is a competitor to PayPal that allows businesses and individuals to accept payments over the internet. Technology companies like Uber and Lyft use Stripe to accept payments because of its ability to accept payments in developer friendly, flexible ways at scale.
How much money has Stripe raised?
Stripe has raised more than $785 million in venture capital rounds. Most recently, Stripe raised $100 million from Tiger Global Management, bringing its valuation up to the $22.5 billion mark, as reported by CNBC.
2) Coinbase – $8 billion
What is Coinbase?
Headquartered in San Francisco, California, Coinbase is a cryptocurrency platform that allows users to buy, sell, and store Bitcoin, Ethereum, and other cryptocurrencies. In addition to their main product where anyone can trade and store their cryptocurrencies, Coinbase operates a Global Digital Asset Exchange (GDAX) called Coinbase Pro where advanced users can trade cryptocurrencies with more access to market analytics and an API for users who want to build their own trading tools.
How much money has Coinbase raised?
Coinbasehas raised a total of $547.3M in funding over 8 rounds. Most recently, Coinbase raised $300 million from Tiger Global Management, bringing their valuation to $8 billion.
3) Robinhood – $7.6 billion
What is Robinhood?
Hailing from Menlo Park, California, Robinhood is a stock trading app that lets users invest in stocks, options, ETFs, and cryptocurrencies commission free. The company makes money by charging for assisted trading services, such as transactions made on the phone with the aid of a live broker, which cost $10, and assisted foreign stock transactions, which cost between $35-$50.
How much money has Robinhood raised?
To date, Robinhood has raised $862 million in 7 rounds of funding. Most recently, Robinhood raised $323 million from DST Global, which raised its valuation to $7.6 billion.
4) SoFi – $4.3 billion
What is SoFi?
SoFi (short for Social Finance, Inc.) is an online lending platform based in San Francisco, California that provides student loan refinancing, mortgages and personal loans. SoFi was founded with the goal of helping students take on debt to fund their education at more affordable rates, and if often praised for their transparency.
How much money has SoFi raised?
SoFi has raised $2.3 billion in debt and equity to date. Earlier this year, they raised $500 million from Qatar Investment Authority while maintaining a valuation of $4.3 billion from their previous round.
5) Credit Karma – $4 billion
What is Credit Karma?
Headquartered in San Francisco, California, Credit Karma is an online personal finance company that helps users track and improve their credit score – all for free. To keep the service free, the company makes money through its system of personalized advertisements from financial companies that are also on the platform.
How much money has Credit Karma raised?
Credit Karma has raised $868 million to date from 7 rounds of funding. Most recently, a round of $500 million from Silver Lake brought their valuation up to $4 billion.