Over the past two years we have seen the valuations of the United States most valuable venture capital backed fintech companies soar. As of March 19th, 2021, a total of six financial technology companies were among the country’s top 20 most valuable venture capital backed companies, with a combined worth of US $145.1 billion, up over 68% from their worth in 2020 of US $86 billion, as data from Pitchbook shows.
The biggest of these Fintechs is online based and payment processing platform Stripe which is currently valued at US $95 billion. Not only is it the largest in the United Statesbut only second to Bytedance’s social media and networking platform TikTok that is valued at US $140 billion, according to April 2021 data.
What is truly remarkable about stripe is that it’s valuation has almost tripled after it announced a massive US $600 million funding round in March of 2021. This new valuation launched Stripe past billionaire Elon Musk’s SpaceX, which was the United States previous most valuable venture capital backed company.
Stripe has set its eyes on Europe, Asia, and Latin America to grow its client base. This is attracting the likes of corporate clients such as Facebook’s Instagram and software provider Atlassian.
Following Stripe, Chime is the United States second most valuable fintech company valued at US $14.5 billion. The neobank providing fee-free financial services through its mobile app. What has attracted a lot of attention is how fast Chime’s valuation has grown sincebeing valued at US $1.3 billion in 2019 to US $6 billion in March, 2020 to passing US $14.5 billion late last year. The neobank has also passed a major milestone early in 2021 when it announced that it had grown its customer base to 12 million, growing 50% during the pandemic alone! According to a recent study by Cornerstone Advisors and Strategy Corps, this makes it the largest online bank in the United States.
Coming in third is commission free stock trading app Robinhood, valued at US $11.9 billion since late 2020. This is a massive surge, some 56%, since its valuation of US $7,6 billion in 2019. From its humble beginnings in 2013 to the end of 2020, Robinhood has amasses some 13 million users, and it add another six million in the first two months of 2021 alone! Robinhood filed recently with the United States Securities and Exchange Commission to file for its initial public offering, or IPO later this year.
Fourth on the list is Blockchain startup Ripple Labs, with a valuation of US $10 billion. Ripple has developed a payment protocol and exchange network but unlike Robinhood their dealing with the opposite side of the Securities and Exchange Commission as they are currently being sued by the government entity.
Finally, fifth on our list is cryptocurrency startup Coinbase, that before its IPO on the New York Stock Exchange, was last valued at US $8 billion dollars. Coinbase operates one of the world’s largest cryptocurrency exchanges, that has amassed a whopping 56 million users, and 6.1 million of them use Coinbase monthly.
“6 Fintechs Make Top 20 US Valuation Leaderboard; Worth a Combined US$145B.” European Fintech News, 19 Apr. 2021, fintechnews.eu/6-fintechs-make-top-20-us-valuation-leaderboard-worth-a-combined-us145b.