We knew our readers would want to see this list. What are America’s most valuable fintechs? The list of top 10 fintech unicorns with valuation over $1Billion is an interesting and diverse one – part B2B, part payments, part P2P loans, part credit card, part micro-savings and part HR. Now THAT’S diverse. What we are not seeing – yet – is any firm in the digital currency space this year. We bet that will change by the time we view this same list next year, at the end of 2018.
“The media defines a unicorn is any company that surpasses $1 billion in value, and the booming fintech sector is now chock-full of them. Surprisingly, despite their successes and sky-high valuations, most people haven’t heard of these companies. That’s because they are still very new and have a lot of work to do before they catch the big banks. That’s why we created a new viz showing you the ten most valuable fintech companies that remain privately held.
Our list comes from Forbes, which uses valuations from Pitchbook and CB Insights based on the last round of known venture financing. The graphic ranks in order the most valuable fintech companies—the larger the bubble, the more valuable the company. We also included the year in which each company started together with the latest valuation and the company’s logo. That makes it easy to see how one compares to another at a glance.
It’s worth pausing for a moment to understand how venture capital works. When a company needs a lot of money to start a new project of roll out a different product, they often tap the equity market. Think about it like this: the company’s owner sells a small percentage of the company for an infusion of capital. In exchange, the investor gets a share of the profits going forward. Both sides are armed with lawyers and accountants who do this kind of thing for a living, and whatever number they agree to can be extrapolated to an overall value for the company (all things being equal). If I invest $100,000 in exchange for 10% of your company, then the whole thing is worth $1 million. Pretty simple….”
Full Story at HowMuch.net