Consumer fintech: billions raised and more satisfaction
June 5, 2019 | Blog

Consumer fintech: billions raised and more satisfaction

Perhaps one of the most iconic consumer fintech company, PayPal, has still got it– at least with consumers polled over April. It’s always interesting to flashback to PayPal’s early history, when as a private company it raised just over $210 million over the course of two years, went public at a $778 million valuation, and was acquired for about twice that at $1.5 billion the same year. Of course, a lot has changed since 2002. While technology has improved and fintech solutions have expanded, venture-backed companies face an equally impactful reality– an abundance of capital in the private market. As such, the next PayPal will likely be much older by the time it reaches public investors. To give investors greater perspective, we surveyed over 1,000 consumers to gain insights into consumer fintech trends. Read the complete report.

Private fintech funding

The innovation economy continues to attract funding at generational highs. This observation holds for fintech companies. During the first four months of 2019, fintech-focused firms raised nearly $8 billion in primary funding. While the exact deal structure for some non-U.S. based companies is difficult to uncover, we do know European companies generally, and UK domiciled companies specifically, have raised a significant amount of capital– just behind the U.S. Notable fintech verticals include Real Estate Technology, Credit and Banking Technology, and Business Productivity Technology.

PayPal & Venmo lead Mobile Wallets

Mobile wallets are used by consumers at the highest rate when compared to other fintech verticals. 52 percent of respondents are likely to adopt using mobile wallets in the future. This observation could bode well for PayPal’s Venmo, which has the current plurality of users. Other top used services include AndroidPay and PayTM. Compared to traditional firms, mobile wallet users are 49 percent more satisfied.

Respondents clamor to Coinbase

One in five crypto buyers use Coinbase to access this fast-changing and volatile as ever asset class. While only 11 percent of consumers have used an online cryptocurrency broker or exchange, 40 percent claim some interest. Users claim 21 percent greater satisfaction compared to traditional institutions.

PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

This article does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

Securities referenced in this article may be offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2020. All rights reserved.

PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

This article does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

Securities referenced in this article may be offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2020. All rights reserved.