The Most Valuable Fintech Startups in the US

The Most Valuable Fintech Startups in the US

The companies we are looking at have an impact on the way taking loans, shopping and investing money affects people. Fintech companies are financial technology companies that have brought about a change in the way that things are done by the use of apps, sites, and services. Consumers can use them to get loans, pay for goods or services, and even manage retirement accounts.

There are many startups and venture capital-backed deals that have cropped up, making fintech a multi-billion-dollar industry, with the fintech startups we are mentioning in this article estimated to be more than $1 billion. In this article, we are going to try and understand the importance of fintech as compiled by Pitchbook.

Clover Health ($1.2 billion)

Founded by Kris Gale and Vivek Garipalli, Clover Health is a health insurance company that is valued at $1.2 billion. The company aims at customers with Medicare Advantage, with Alphabet Inc.’s investment arm GV, backing it. the company takes advantage of user data to identify loopholes so as to seal them and making it less costly to the insurance provider. Since the launch of the company in 2013, it has managed to raise $425 million.

Kabbage ($1.3 billion)

This is an automated lending platform that was founded in 2009 and got an injection of $250 million in August 2017. With more than 100,000 clients, and having lent out more than $3.5 billion, Kabbage has $1.35 billion in investments and debt financing, making it the leader of well-funded startups in Georgia.

Robinhood ($1.3 billion)

This is a zero-commission, US-focused stock brokerage company that was founded in 2012, now valued at $1.3 billion. In April 2017, it got funding of $110 million. The company offers $0 commission fee on its trades, earning commissions on the interest from the money that is left in their customers’ accounts.

Avidxchange ($1.4 billion)

Launched in 2000, Avidxchange deals with on demand invoice management and accounts payable. It was valued at $1.4 billion when it joined the unicorn club this year, having gotten a $300 million funding in June 2017. Through traditional venture capital and private equity, Avidxchange has raised $545 million. One of the things that makes the company worth mentioning is the remarkably high latest funding, for a company that is nearly two decades old. In North Carolina, it is the best-funded startup.

Coinbase ($1.6 billion)

A $108 million funding in August 2017 brought the value of Coinbase to $1.6 billion, making it gain unicorn status this summer. This is a leading cryptocurrency exchange company that was launched in 2012, raising $217 million in funding.

Apttus ($1.9 billion)

In September 2017, Apttus got an investment of $55 million, making it worth $1.9 billion. Founded in 2006, Apttus is a tech company that utilizes artificial intelligence (AI) to make sales contracts run smoothly, something that they refer to as “quote-to-cash software”. In the first 7 years in operation, Apttus didn’t raise any money, but after 2013, they raised $329 million.

Avant ($2 billion)

Avant was valued at $2 billion after a $325 million funding round in September 2015. This is a personal loan company that comes up with interest rates based on consumer data and AI. Despite being among the most valuable companies, it has had its fair share of troubles, even laying off staff and cutting the monthly lending in two, in June 2016.

Oscar ($2.7 billion)

Oscar is a branding company that was launched in 2013 at the time when Obamacare was being launched. It sells individual healthcare insurance plans using a digital interface that is user-friendly. In 2016, they got funding of $400 million, giving it a value of $2.7 billion.

Credit Karma ($3.5 billion)

Issuing free credit scores and reports, this is a personal finance company that was founded in 20017, ruling over the digital credit monitoring space. In June 2015, the company got funding of $368 million after an injection of $175 million, giving it a total valuation of $3.5 billion.

SoFi ($4.4 billion)

SoFi, short for Social Finance, is valued at $4.4 billion, having gotten funding of $500 million in February 2017. The online lender targets student loans as well as mortgages for low-risk borrowers. The company has raised more than $2 billion in funding, making it stand out.

Stripe ($9.2 billion)

Allowing businesses to accept payment methods such as credit cards, Google Pay, Apple Pay, and other similar payment methods, Stripe is a payments processing startup. It boasts of customers such as L the most recent valuation is $9.2 billion, having raised a total of $440 million, the most recent funding in November 2016 bringing in $150 million. Some of their main competitors in this space include Braintree and PayPal.

Summary

The 11 companies mentioned in this article make up for more than $1 billion in the united States, and are the most valuable fintech startups.

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