25 fintech unicorns stumble, but they’re still stampeding

25 fintech unicorns stumble, but they're still stampeding. Image: Rob Brewer, CC
Written by Chris Skinner

What happened to the fintech unicorns following yesterday’s financial market ‘bloodbath’, now known as Black Monday. Story by Chris Skinner.

I’ve discovered lots of lists of fintech unicorns. The main list is from Jim Bruene; there’s a nice list that is from a European’s perspective by Bernard Lunn; and a UK list published by me the other day. In fact, in preparing some charts yesterday, I scraped the list of unicorns and valuations as of last week and compared them with their valuations this week, after the Chinese meltdown that’s now being called Black Monday (shouldn’t we call it the Black Tiger Monday?).

I’m sure you already know this but, if you look at today’s headlines, here’s the summary of what happened yesterday:

Severe losses in Chinese markets prompted a global sell-off. Many expected the Chinese government to take measures such as cutting interest rates or injecting liquidity to stop further losses after the Shanghai Composite Index fell nearly 12% last week. No action prompted further losses of 9% on Monday. Monday’s bloodbath marked the 10th day of consecutive losses, the longest straight period of decline since 2003.

It’s not great. Lending Club is now valued at half of its IPO price, and most fintech unicorns lost 5% in value over the weekend. Nevertheless, there are some major titans out there. For example, the ‘Top 25 Fintech Unicorns’ have a combined value of over $63bn (£40bn). That’s around the same as Barclays Bank (market cap: $66bn, £42bn). Not bad for an industry that’s just 10 years old.

A list of fintech unicorns based on their most recent valuations according to Business Insider.

LufaxChinese P2P lender.2011$10bn
SquareSmartphone card readers, small business loans, and online payments.2009$6bn
MarkitFinancial information and data provider.2003$5.1bn (21 Aug 15), $4.85bn (25 Aug 15)
StripeOnline payment processing.2010$5bn
Lending ClubAmerica's biggest P2P consumer loans platform.2007$8.9bn at IPO (18 Dec 14) $4.7bn (21 Aug 15), $4.5bn (25 Aug 15)
ZenefitsFree HR software for small businesses.2013$4.5bn
Credit KarmaFree credit scores.2007$3.5bn
Powa TechnologiesMakes mobile payment products.2007$2.7bn
KlarnaOnline payment processing.2005$2.25bn
CommonBondP2P student loans marketplace.2011$2bn
One97Bill payments and online shopping.2000$2bn
ProsperP2P lending platform for consumers.2005$1.9bn
ZuoraSoftware that lets companies take subscriptions.2007$1.5bn
FinancialForce.comSells cloud-based accounting apps.2009$1.5bn
Oscar HealthOnline health insurance.2013$1.5bn
AdyenOnline payment processor.2006$1.5bn
XeroMakes cloud-based accountancy software for small businesses.2006$1.4bn (21 Aug 15), $1.25bn (25 Aug 15)
iZettleMakes card readers for smartphones.2010$1.4bn
SoFiMarketplace for student loan refinancing.2011$1.3bn
Housing.comOnline Indian real estate platform.2012$1.3bn
QufenqiLets Chinese consumers buy electronics in installments.2014$1.3bn
Funding CircleP2P loan platform for small businesses.2009$1bn
JimuboxChinese P2P loan provider.2013$1bn
TransferWiseInternational money transfer service.2010$1bn
MozidoMobile payment and wallet provider.2005$1bn

This article is reproduced with kind permission. Some minor changes have been made to reflect BankNXT style considerations. You can read the original article here. Image: Rob Brewer

About the author

Chris Skinner

Chris Skinner is an independent commentator on the financial markets through the Finanser, and chair of the European networking forum the Financial Services Club, which he founded in 2004. He is an author of numerous books covering everything from European regulations in banking through to the credit crisis, to the future of banking.

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