The biggest fintechs in the market
January 23, 2018 8:48 PM
The experience of Social Finance, which announced a new CEO on Tuesday , shows how the biggest names in fintech, while generating massive financial support, still operate in a very volatile world.
Twitter executive Anthony Noto will have to demonstrate to Wall Street he can overhaul the firm's corporate culture, lay the groundwork for an IPO and determine whether to renew SoFi's pursuit of a bank charter.
Not every fintech is a magnet for sensational headlines. Counting down the top fintechs by valuation, partly based on researchaccording to Forbes , the list includes several firms, such as Avant and Stripe, that have managed to attract funding, develop friendly partnerships with banks and mold successful business models.
Twitter executive Anthony Noto will have to demonstrate to Wall Street he can overhaul the firm's corporate culture, lay the groundwork for an IPO and determine whether to renew SoFi's pursuit of a bank charter.
Not every fintech is a magnet for sensational headlines. Counting down the top fintechs by valuation, partly based on research
10. Robinhood
Leadership: Baiju Bhatt (above left) and Vladimir Tenev (above right), co-founders and co-CEOs
Total funding (including debt and equity): $176 million
Valuation: $1.3 billion
Employees: 51-100
Industry ties: Few financial firms can count Snoop Dogg and Jared Leto as first-round investors. Robinhood has previously announced a partnership with the digital-only bank BankMobile.
Total funding (including debt and equity): $176 million
Valuation: $1.3 billion
Employees: 51-100
Industry ties: Few financial firms can count Snoop Dogg and Jared Leto as first-round investors. Robinhood has previously announced a partnership with the digital-only bank BankMobile.
9. Kabbage
Leadership: Rob Frohwein, co-founder and CEO; Kathryn Petralia (above) president and co-founder
Total funding (including debt and equity): $1.6 billion
Valuation: $1.2 billion
Employees: 400-500
Industry ties: The online small-business lending platform has attracted investment from Credit Suisse, Scotiabank, and the fintech investment arms of ING Bank and Santander Bank. It has a partnership with Utah-based Celtic Bank for its small business lending offerings. The fintech's lending platform technology is also licensed out to banks in Canada, South America and Europe.
Total funding (including debt and equity): $1.6 billion
Valuation: $1.2 billion
Employees: 400-500
Industry ties: The online small-business lending platform has attracted investment from Credit Suisse, Scotiabank, and the fintech investment arms of ING Bank and Santander Bank. It has a partnership with Utah-based Celtic Bank for its small business lending offerings. The fintech's lending platform technology is also licensed out to banks in Canada, South America and Europe.
8. AvidXchange
Leadership: Michael Praeger (above), co-founder and CEO
Total funding: $547.8 million
Valuation: $1.4 billion
Employees: 501-1,000
Industry ties:KeyCorp has an equity stake in the company and a board observer seat. In October, Fifth Third Bank partnered with the fintech and Mastercard to offer accounts payable and payment automation to its small and midsize business clients.
Total funding: $547.8 million
Valuation: $1.4 billion
Employees: 501-1,000
Industry ties:
7. Zenefits
Leadership: Jay Fulcher, CEO; Laks Srini, founder
Total funding (including debt and equity): $583.6 million
Valuation: $2 billion
Employees: 501-1000
Industry ties: Once a Silicon Valley darling, then hobbled by controversies, Zenefits now focuses on human resources software. It maintains a number of payroll provider integrations. To process payments, Zenefits has partnered with Plaid. It also has a partnership with the accounting app Xero to allow clients to manage payroll.
Total funding (including debt and equity): $583.6 million
Valuation: $2 billion
Employees: 501-1000
Industry ties: Once a Silicon Valley darling, then hobbled by controversies, Zenefits now focuses on human resources software. It maintains a number of payroll provider integrations. To process payments, Zenefits has partnered with Plaid. It also has a partnership with the accounting app Xero to allow clients to manage payroll.
6. Avant
Leadership: Al Goldstein, co-founder and CEO; Paul Zhang, co-founder and chief architect; Adam Hughes, president and chief operating officer (above)
Total funding: $1.8 billion
Valuation: $2 billion
Employees: 501-1000
Industry ties: The online lender can count some of the biggest names in banking as supporters. Credit Suisse, JPMorgan and Morgan Stanley have all invested in the startup. Regions Bank is also a partner in online loans. In 2016, it appointed former FDIC chief Sheila Bair to its board.
Total funding: $1.8 billion
Valuation: $2 billion
Employees: 501-1000
Industry ties: The online lender can count some of the biggest names in banking as supporters. Credit Suisse, JPMorgan and Morgan Stanley have all invested in the startup. Regions Bank is also a partner in online loans. In 2016, it appointed former FDIC chief Sheila Bair to its board.
Kholood Eid/Bloomberg
5. Oscar
Leadership: Joshua Kushner, co-founder; Mario Schlosser, co-founder & CEO (above)
Total funding: $727.5 million
Valuation: $2.7 billion
Employees: 251-500
Industry ties: Goldman Sachs is a key investor, as is Fidelity. Co-founder Joshua Kushner is the brother of senior White House adviser Jared Kushner. Though the startup has suffered post-Obamacare losses, it has pushed new strategies, including a partnership to offer health insurance through Humana. In January it signed a reinsurance agreement with AXA.
Total funding: $727.5 million
Valuation: $2.7 billion
Employees: 251-500
Industry ties: Goldman Sachs is a key investor, as is Fidelity. Co-founder Joshua Kushner is the brother of senior White House adviser Jared Kushner. Though the startup has suffered post-Obamacare losses, it has pushed new strategies, including a partnership to offer health insurance through Humana. In January it signed a reinsurance agreement with AXA.
Luke Sharrett/Bloomberg
4. Credit Karma
Leadership: Kenneth Lin, founder and CEO
Total funding: $368 million
Valuation: $3.5 billion
Employees: 501-1000
Industry ties: The consumer credit reporting platform has multiple partnerships with banks as part of its lead-generation business model for loans and credit cards.
Total funding: $368 million
Valuation: $3.5 billion
Employees: 501-1000
Industry ties: The consumer credit reporting platform has multiple partnerships with banks as part of its lead-generation business model for loans and credit cards.
3. GreenSky
Leadership: David Zalik, CEO
Total funding (including debt and equity): $350 million
Valuation: $3.6 billion
Employees: 501-1000
Industry ties: Fifth Third Bank is one of GreenSky’s strategic partners and lead investors, having provided $50 million in funding to the commercial lending fintech. Since its launch in 2006, GreenSky has made numerous alliances — SunTrust, Synovus Bank, Regions Bank and Cross River Bank are among its 14 banking partners that provide loans through retailers and medical practices for a variety of personal needs, from home renovation projects to surgical procedures.
Total funding (including debt and equity): $350 million
Valuation: $3.6 billion
Employees: 501-1000
Industry ties: Fifth Third Bank is one of GreenSky’s strategic partners and lead investors, having provided $50 million in funding to the commercial lending fintech. Since its launch in 2006, GreenSky has made numerous alliances — SunTrust, Synovus Bank, Regions Bank and Cross River Bank are among its 14 banking partners that provide loans through retailers and medical practices for a variety of personal needs, from home renovation projects to surgical procedures.
David Paul Morris/Bloomberg
2. SoFi
Leadership: Tom Hutton, interim CEO; Anthony Noto, incoming CEO (above)
Total funding (including debt and equity): $2.2 billion
Valuation: $4.3 billion
Employees: 501-1000
Industry ties: Since its launch in 2011, the education lender’s bank investors include Morgan Stanley, East West Bank and The Bancorp. In addition to raising millions in credit lines from banks, Social Finance also sells student loans it originates back to banks. SoFi acquired the mobile banking app Zenbanx last February but shut it down six months later. Though it withdrew its banking charter application, the company is expected to start offering SoFi Money, an account offered in conjunction with WSFS Financial in Delaware.
Total funding (including debt and equity): $2.2 billion
Valuation: $4.3 billion
Employees: 501-1000
Industry ties: Since its launch in 2011, the education lender’s bank investors include Morgan Stanley, East West Bank and The Bancorp. In addition to raising millions in credit lines from banks, Social Finance also sells student loans it originates back to banks. SoFi acquired the mobile banking app Zenbanx last February but shut it down six months later. Though it withdrew its banking charter application, the company is expected to start offering SoFi Money, an account offered in conjunction with WSFS Financial in Delaware.
1. Stripe
Leadership: Co-founders John Collison (above) and Patrick Collison
Total funding: $440 million
Valuation: $9.2 billion
Employees: 501-1000
Industry ties: Positioned as a challenger to PayPal, Stripe enjoys the financial and business support of multiple banking allies, including American Express, Visa and Silicon Valley Bank. Since launching in 2010, the online payments firm has expanded globally, including by adding support for Alipay and WeChat Pay. In November, Stripe invested in the U.K. mobile bank Monzo.
Total funding: $440 million
Valuation: $9.2 billion
Employees: 501-1000
Industry ties: Positioned as a challenger to PayPal, Stripe enjoys the financial and business support of multiple banking allies, including American Express, Visa and Silicon Valley Bank. Since launching in 2010, the online payments firm has expanded globally, including by adding support for Alipay and WeChat Pay. In November, Stripe invested in the U.K. mobile bank Monzo.
