Connect with us

Tech

Here are the fintech startups that could go public in 2024

Published

on


Could 2024 be the year for fintech IPOs? Quite possibly, according to F-Prime Capital’s State of Fintech 2024 report.

F-Prime a VC firm with over $4.5 billion in assets under management that tracks the performance of emerging, publicly traded and privately held financial technology companies — naturally remains bullish on the fintech space, noting that: “In aggregate, fintech companies have captured <10% of financial services revenue, yet many scaled private fintech companies are generating $1B+ revenue, still growing rapidly, and expected to list in public markets.”

“Many sizable companies are now filing or considering going public,” says F-Prime.

To be clear, when F-Prime refers to fintech, it lumps together financial technology and crypto/blockchain startups. Here at TC, we have tended to separate our coverage of the two, although arguably, crypto undoubtedly falls under the fintech umbrella. For the purposes of this article, though, we are going to focus on just some of the the non-crypto focused companies that have the potential to go public this year.

Whether any of these companies actually take the plunge remains to be seen; we have to say we’d be excited for even just one to file that S-1 to give us greater insight as to just how much money these companies are (or are not) really making.

Apex

As reported by Dallas Innovates last December, “two years after attempting to go public via a SPAC merger that valued it at $4.7 billion post-money, Apex is looking to do it the old-fashioned way with a direct SEC filing…The stock trade clearance firm filed confidentially with the SEC, saying that “the total number of shares to be offered and the price range for the proposed offering have not yet been determined.”

Stripe

In January of 2023, it was reported that Stripe had set a 12-month deadline for itself to go public, either through a direct listing, or to pursue a transaction on the private market, such as a fundraising event and a tender offer.

Well, it’s been 12 months and we haven’t heard anything about an IPO. But the payments giant did raise more capital last year. Last March, Stripe announced that it had raised over $6.5 billion in Series I funding at a $50 billion valuation. It had been previously valued at $95 billion, giving it the status as one of the highest valued privately held fintech companies in the world. In November of 2022, Stripe laid off 14% of its staff, or around 1,120 people. But the fintech continues to branch out. Last June, TechCrunch reported that Stripe had acquired a (non-fintech!) startup and announced an expansion of its issuing product into credit.

Klarna

Swedish fintech Klarna confirmed to TechCrunch last November that it was taking steps “toward an eventual IPO.” The company said it had initiated a process for a legal entity restructuring to set up a holding company in the United Kingdom “as an important early step” in its plans for an initial public offering, according to a Klarna spokesperson. The move came on the heels of a positive third quarter in which Klarna swung to a profit and reported 30% higher revenue of around $550 million. Creating a new legal entity at the top of the company’s corporate structure would enable it to list on a stock exchange more easily, the spokesperson added. Its most recent valuation was $6.7 billion, which was down 85% from a $45.6 billion valuation it had boasted a year prior.

Sebastian Siemiatkowski

(Photo by Noam Galai/Getty Images for TechCrunch)

Lendbuzz

Lendbuzz, a fintech company applying artificial intelligence to provide auto loans to people who lack a credit history, in December “hired investment banks for an IPO that could value it at more than $2 billion,” as reported by Reuters. In June of 2021, TechCrunch had reported that the auto finance platform had raised $300 million in debt financing and $60 million in funding.

Chime

Rumors have swirled for some time that Chime is eyeing the public markets. Once valued at $25 billion, the neobank was initially, as TickerNerd reports, “all set for a March 2022 debut with a valuation between a whopping $35 and $45 billion,” but then the markets turned. By November 2022, the company had announced it was laying off 12% of its workforce, or about 160 people. Recent reports peg the company’s valuation at closer to $6.7 billion, and it’s possible that Chime could decide to take the plunge this year, considering it was slated for a market entry in late 2023, according to Investing.com. 

Image Credits: F-Prime Capital

Plaid

Last October, TechCrunch reported that Plaid had hired former Expedia CFO Eric Hart to serve as its first chief financial officer — usually a crucial step in a private company moving toward the public markets. Then today, the company announced it had snagged Cloudflare’s chief product officer, Jen Taylor, to serve as its first president. When asked if the move meant that the company was planning to go public, a spokesperson told TechCrunch: “I can confirm that an eventual IPO is a milestone we’re tracking towards, but we don’t have any details or a timeline to share beyond that.” Plaid got its start as a company that connects consumer bank accounts to financial applications, but has since been gradually expanding its offerings to offer more of a full-stack onboarding experience. It was almost bought by Visa for $5.3 billion before regulators put the brakes on that deal — which some call a blessing in disguise.

Plaid founder Zack Perret in conversation with Ingrid Lunden at TechCrunch Disrupt 2023. Ross Marlowe/TPG for TechCrunch

Image Credits: Ross Marlowe/TPG for TechCrunch

Rippling/Gusto/Deel

The HR tech space got really hot, really fast and these three companies are among the hottest in the space. Rippling last March was able to secure $500 million in fresh funding as SVB was melting down. Last June, we found out that Gusto in its most recent fiscal year (the 12 months ended April 30, 2023) had generated revenue of more than $500 million. In January 2023, Deel revealed it had reached $295 million in annual recurring revenue (ARR) by the end of 2022. By November, that number had reportedly reached $400 million. Interestingly, Rippling has been vocal about its rivalry with the other two companies. At TechCrunch Disrupt in 2022, CEO Parker Conrad talked about the fact that Rippling was entering into Deel’s territory. Even as far back as 2020, Rippling went after Gusto with a billboard stating: “Outgrowing Gusto? Presto change-o.”

Brex/Ramp/Navan

The spend management space is another crowded one with multiple players clamoring for market share, including Brex, Ramp, Airbase, Navan (formerly TripActions) and Mesh Payments, among others. So far, Navan is the only one to go as far as filing confidentially for an IPO at a $12 billion valuation. But, that was in September of 2022 and we haven’t really heard anything on that front since. Last December, the company laid off 5% of its staff, or 145 people. Brex, which was valued at $12.3 billion two years ago, has had two rounds of layoffs in the past 18 months, and is reportedly working to reduce its cash burn. Ramp raised $300 million at a 28% lower valuation of $5.8 billion last August. So far, it has not laid off staff. When asked about IPO plans, CEO and co-founder Eric Glyman recently told TC that the company was “excited to explore the IPO process eventually, but have no active timeline around that.”

Want more fintech news in your inbox? Sign up for TechCrunch Fintech here.



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Tech

Intrepid spacecraft beams back vivid photo before moon landing

Published

on

By


An uncrewed private spacecraft has reached the moon’s orbit, one day ahead of its attempt to land at the lunar south pole.

Intuitive Machines’ robotic spacecraft, which launched from Cape Canaveral, Florida, on Feb. 15, beamed back a view of the near side of the moon to flight controllers just six days later. The craft took a speedier path through space to get to the moon than its predecessors over the past year.

On Wednesday, the spacecraft completed its planned main engine burn to get into a circular orbit about 57 miles above the moon. NASA and its contractor intend to broadcast the landing on their respective websites. The event is scheduled for 5:49 p.m. ET Feb. 22.

“Odysseus continues to be in excellent health,” the company said on X, formerly known as Twitter, referring to its name for the lander.

If Intuitive Machines touches down without crashing, it will be the first U.S. spacecraft to complete the quarter-million-mile journey since the last Apollo mission in 1972. Though NASA isn’t controlling this spaceflight and doesn’t own Odysseus, the agency is paying the company $118 million to deliver six instruments to the moon, among other customers’ payloads.

The proposed landing site is Malapert A crater, just under 200 miles from the south pole. Several spacefarers have set their sights on this general region because of its ice. The natural resource, thought to be buried in permanently shadowed craters, is coveted because it could supply drinking water, oxygen, and rocket fuel for future space voyages.

Throughout history, about half of lunar landing attempts have failed, and only one out of three missions that tried to touch down on the moon in 2023 made it without a crash.

Odysseus, the Intuitive Machines’ moon lander, takes a photo of Earth in space.
Credit: Intuitive Machines

Already this year, another NASA contractor, Astrobotic Technologies, tried to get to the moon but never reached lunar orbit due to a detrimental fuel leak discovered early in the flight. In January, Japan became the fifth nation ever to land a spacecraft on the moon, but not without incident: It got there upside down and suffered significant power-generation problems.

NASA selected Intuitive Machines as one of several vendors for its Commercial Lunar Payload Services initiative to explore the moon over the next few years. The program has recruited the private sector to help deliver cargo, conduct experiments, and demonstrate new technology, as well as send back crucial data. Through these contracts, NASA wants to see a regular cadence of moon missions to prepare for astronauts’ return to the moon in 2026 or later.

“What we’ve asked industry to do, which is soft land and operate on the moon’s surface, is not easy at all. It’s extremely difficult, as you probably have seen for lunar landing attempts just in the month of January,” said Joel Kearns, NASA’s deputy associate administrator for exploration, during a call with reporters.

No commercial company has achieved this feat so far, although a few have tried.

SpaceX’s Falcon 9 rocket upper stage deploys Intuitive Machines’ Nova-C lander, aka “Odysseus,” in space.
Credit: SpaceX

Landing on the moon is hard because its exosphere — an extremely thin atmosphere of gasses barely held by the moon’s gravity — provides virtually no drag to slow a spacecraft down as it approaches the ground. Furthermore, there are no GPS systems on the moon to help guide a craft to its landing spot.

Despite numerous failures anticipated from the new, inexperienced players in space exploration, people can expect to be dazzled by their cosmic views, such as the stunning Intuitive Machines images of the past week.

“Pretty cool when a lunar lander takes a picture of its ride to space!” SpaceX said in a post on X last week. “Wishing @Int_Machines and IM-1 a safe and soft landing on the Moon.”





Source link

Continue Reading

Tech

How to watch the moon landing live: See the Intuitive Machines landing attempt

Published

on

By



We might be watching a historic moon landing today.

Intuitive Machines’ IM-1 spacecraft, the uncrewed Odysseus, could potentially land on the surface of the Moon on Feb. 22 at around 4:24 p.m. ET, after an eight-day journey through space. While we can’t be completely sure that the landing will be successful, on Wednesday Intuitive Machines said Odysseus “continues to be in excellent health in lunar orbit.”

You can watch the official stream on Intuitive Machines’ site, on NASA’s website, NASA Television, the NASA app, or on NASA+. You can also keep up by following blog updates on NASA’s website. The live coverage begins at around 3:00 p.m. ET, will continue through the potential landing, and ends with a news conference held by NASA.

The spacecraft is expected to land near Malapert A crater in the south pole region of the moon.

Odysseus launched on Feb. 15 on a SpaceX Falcon 9 rocket from Launch Complex 39A at NASA’s Kennedy Space Center. Its landing would make the first commercial moon landing and is quite the feat. Landing on the moon is an infamously difficult task for a variety of reasons, including the lack of GPS systems and atmospheric drag. Only five countries, including the former Soviet Union, the U.S., China, India, and Japan, have landed on the moon without a significant wreck.





Source link

Continue Reading

Tech

U.S. company makes history with first commercial moon landing

Published

on

By


A small American company’s robotic spacecraft has brought the United States back to the surface of the moon for the first time in more than a half-century.

Intuitive Machines, a Houston-based space company, landed on Thursday, becoming the first commercial company to reach the moon intact. The unprecedented achievement is a win for NASA, which has invested $2.6 billion in contracts with Intuitive Machines and several other vendors to deliver instruments to the moon over the next four years.

It wasn’t all smooth sailing. A few hours before the landing, flight controllers discovered the spacecraft’s laser rangefinders, which help it avoid hazards on the ground, weren’t working. The team decided to take one more lap around the moon, which bought engineers a couple more hours to troubleshoot the problem. During that orbit, they uploaded a software patch to use onboard NASA lasers, which hadn’t previously been tested in space.

Then, there were some communication challenges, but NASA was quick to call the landing a success, even before a photo was beamed back to Earth.

“Today, for the first time in the history of humanity, a commercial company — an American company — launched and led the voyage up there,” said NASA administrator Bill Nelson in a pre-recorded message during the broadcast. “Today is a day that shows the power and promise of NASA’s commercial partnerships.”

The moon lander dubbed Odysseus touched down on Malapert A crater, about 200 miles from the lunar south pole, just before 6:30 p.m. ET. Many nations and private ventures have set their sights on the region because of its ice, thought to be buried in the polar craters. The natural resource is coveted because it could supply drinking water, air, and rocket fuel for future missions, ushering a new era in spaceflight.

The success lends legitimacy to the Commercial Lunar Payload Services initiative (CLPS), a private sector recruitment program to support NASA’s lunar ambitions. Through several contracts, the U.S. space agency wants to establish a regular itinerary of moon missions to prepare for putting Artemis astronauts on the moon in 2026 or later.

Thomas Zurbuchen, NASA’s former head of science, once described each of the first CLPS endeavors as “taking a shot on goal.” The sports analogy means not every attempt will be victorious, but overall the program will give NASA a lot of chances to achieve its moon-to-Mars goals. By outsourcing NASA’s lunar deliveries — rather than fully owning each mission — the agency believes it will save money. The contract with Intuitive Machines for this mission was $118 million.

Odysseus, the Intuitive Machines spacecraft, passes over the near side of the moon on Feb. 21, 2024.
Credit: Intuitive Machines

“We don’t know how many of the early attempts will be successful,” said Joel Kearns, NASA science’s deputy associate administrator for exploration, during a news conference in November. “But I can tell you that these American companies are technically strong and rigorous, savvy, they’re resourceful, and they’re driven to be successful. They want to secure that first mover advantage in generating this new lunar economy.”

But observers have questioned how cost-effective the initiative will truly be, given the riskiness of flying on inexperienced spacelines. In January, Astrobotic Technologies, the first of the CLPS vendors, tried to get to the moon, but never reached lunar orbit due to a detrimental fuel leak. NASA spent $108 million on that mission and lost five payloads in the process.

“If we’re flying missions at one-tenth of the cost of a NASA mission, and we fail two of them, we still get eight missions for that same price,” Kearns said in a pre-recorded statement during the landing broadcast. “Even with one or two or three failures, this is still a very economical proposition.”

Intuitive Machines’ Odysseus moon lander snaps a photo of Bel’kovich K crater, a 30-mile-wide pit with mountains in the center from lunar orbit.
Credit: Intuitive Machines

The likelihood of success, especially for novice space programs, is still slim. Historically, less than half of all missions to land on the moon have arrived without crashing. The lunar exosphere — an extremely thin atmosphere of gasses barely held by the moon’s gravity — provides virtually no drag to slow a spacecraft down as it approaches the ground. Furthermore, there are no GPS systems on the moon to help guide a craft to its landing spot. Engineers have to compensate for these shortcomings from 239,000 miles away.

Over the past five years, the private sector has tried and failed. An Israeli nonprofit and company collaborated in 2019 on the so-called Beresheet moon mission, which crashed on the lunar surface after an orientation component malfunctioned. Last April, Japanese startup ispace ran out of fuel on its descent and ultimately crashed. Astrobotic’s Peregrine lander never made it that far and ultimately broke apart as it crashed back to Earth.

But Intuitive Machines’ landing could instill confidence in the burgeoning lunar economy.

“I know this was a nail biter, but we are on the surface, and we are transmitting,” said Stephen Altemus, Intuitive Machines’ CEO. “Welcome to the moon.”





Source link

Continue Reading

Trending

Copyright © 2023 Dailycrunch. & Managed by Shade Marketing & PR Agency