BEFORE VIEWING ITS CONTENTS YOU MUST SELF-CERTIFY YOURSELF AS AN ACCREDITED INVESTOR. To put it another way, if an existing shareholder wants to sell some of their shares, they … link Pre IPO Shares Available We have access to Pre IPO shares of SpaceX, Impossible Foods, Sofi, Grab, Ripple Labs, Stripe, automation Anywhere, UI Path, Robinhood, Data Bricks and more. How do they make their money? To be fair, it's not the only tech company with a high-value. But it still sounds pretty reasonable when you consider what some of these other fin techs are trading for, considering just the wide scope of what they do. I want to see their expenses. That's a big cost of capital advantage for a lender. Moser: Just a reminder for all of our bitcoin bull listeners, you can reach Matt on Twitter @TMFMathGuy. Moser: Yeah, I've never been self employed, but I worked at Bank of America for a couple of years, and I was a loan officer there. It's because the valuation is lower than a lot of people thought so far it would end up going public for. If bitcoin got to that level of stability, I might buy the stored value argument a little bit more. With contactless payments I can pay by just tapping my phone on something. I don't see widespread adoption happening. 3 Recommend SoFi: Based on a survey of 1,642 SoFi members from 02/21/2019 to 03/13/2019 who funded a loan with SoFi within 6 months of the survey date, 98% of participants would recommend SoFi to a friend. SoFi has a reputation of staying hip with the millenials offering services like student loans, fractional share ownership, mortgages, and Crypto. They were founded by former Google [Alphabet] people, if that helps. Moser: I think that's probably right. The new CEO, Charlie Scharf, has prioritized expense reduction, saying he wants to cut I think $10 billion of expenses off the bank. Frankel: Upstart is trying to become a financial technology company that partners with banks and just to help them do their existing business better. But even then, I was just astounded at how difficult it was, and you could see the frustration from the clients when they came in, and you had to call them back in, and we had to call for more documentation, and needed another signature. Because of this it is highly risky, as organizations do not have … I'm with you. Moser: Well, Matt, speaking of fintech and banking of the future and all that jazz, we've seen over the past 24 hours, we don't get into bitcoin very often on this show. The initial public offering (IPO) market overcame a lightning-quick bear market in 2020 to bounce back to levels not seen since the dot-com boom. IPOE, Social Capital Hedosophia V is the official name for it, but just call it an IPOE, let's keep it simple, they raised about $800 million and the various other investors are contributing another $1.2 billion to acquire SoFi, which is an online financial business. You said all due respect, man. Listen, man, I appreciate you taking the time to jump on as always. You said about a 16% stake. At the present moment, it is possible to invest in SoFi … Upstart's not a bank itself like a lot of these fintechs. These are two very similar businesses, so I'm going to be interested to get your take on then both. They use over 1,600 data points, not just the FICO score, they use 1,600 consumer data points to get a really good picture of someone's risk profile. This week, because banks are getting ready to kick off earnings season on Friday, we wanted to just go ahead and get your take on a couple of things you are watching here for banks this coming earnings season. Frankel: Well, like you said, they are pretty recent IPO, and given the times, like every other IPO, they've shot through the roof since they [laughs] went public. Joining me this week, it's my man, [laughs] Certified Financial Planner, Matt Frankel. I'm going to stick with that as my one to watch because they report their earnings on Friday, which is the first day of bank earnings. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. [laughs]. Pre-IPO Syndication Planning Large IPO’s are underwritten by a syndicate of investment banks. Ultimately, what it resulted in, Xoom was really taking a lot of share, PayPal saw that, jumped in there, made the acquisition before they got too big. They partner with banks. Matt, as I said in the intro there, we're going to talk a little bit about a brand new IPO, and then a company that's talking about getting ready to IPO. They use their algorithms to find creditworthy borrowers that the system has overworked, and partners with banks who make the actual loans, and Upstart gets a referral fee for its services. No, I won't do that. And while banking will likely always exist in some fashion, they may be in the process of killing conventional financial institutions, with branches and physical locations potentially on their way out. Frankel: Now you're going to make me be the bad guy again. Let's wrap up with some of the risks or things that we're just keeping our eyes on here. I want to see any commentary toward when that might start to happen and to what extent. Matthew Frankel: Pretty good, as you can see by the background, it's another day in paradise. Pre-IPO shares … I think you make a lot of good points there and I'm sure there are folks out there who would take the other side of the coin, so to speak. Upstart is a company that just IPOed, I believe in December, so this is brand new to the public markets. As the name implies, the special type of company [laughs] that it's formed for one reason, to acquire a private business and take it public. I've mined bitcoin, I've used bitcoin, I lived off bitcoin for a day just to see if it was possible. Let's start just from the 50,000 foot view here. Frankel: That's a big motivation. There's nothing wrong with that at all. Frankel: Well, for one, well, bitcoin is still several times more than it was at this time last year, so take it with a grain of salt. Okay, so let me give you one statistic. Game on! Let's pivot over to another business that plays, it seems, in the same sandbox, maybe a little bit of a different focus there on who they are lending to, but we're looking at SoFi, Social Finance, also known as SoFi, looking to go public here possibly soon through the SPAC vehicle. Or you can drop us an email at MFindustryfocus@fool.com. It's not a no-risk investment and it's really priced for a lot to go right in the next couple of years. Moser: [laughs] Money makes people do a lot of things. While many have never heard of Social Finance or SoFi, it’s valued at $8 Billion USD which puts it not exactly at the bottom of the list. An IPO is when a company’s shares trade on a public market for the first time. I don't buy the use case for bitcoin. Then that's a big competitive advantage all by itself. Now that companies like Palantir, Airbnb, and many others have filed for IPO; investors are looking further down the line at companies like SoFi that may eye an IPO at some point in the near future. Prior to an IPO, a company is “private,” which means that shares of stock are not available for sale to the general public. My time is better spent doing something else. | Crowdfund Insider: Global Fintech News, including Crowdfunding, Blockchain and more. It's a $1 billion-dollar SPAC that is still looking for its acquisition target. The stored value I think I don't really buy at the moment. That's the brief overview of how SPAC works. I think that with any of these types of businesses, particularly in this current market, the way IPOs have been received, at least in the near-term valuation, has to be at least a concern. Much of that growth, rising from 10 million at the start of 2020, has been fueled by the coronavirus pandemic as millennials have increasingly seen opportunity in the beaten-down stock market. Frankel: I thought you were about to give out my address or something. Before we get into SoFi real quickly, let's just give our listeners a quick rundown on how SPACs work. That sounds impressive, right? Now, it's easier than ever to switch from one currency to another. From A SPAC goes public, it has no business operations when it goes public. Now that the bank is allowed to pay dividends and buy back shares, the Federal Reserve said banks can start doing this in the first quarter. Frankel: The first three were Virgin Galactic, like I just mentioned, Opendoor Technologies, which just finalized, and Clover Health, which just finalized. A banking charter really makes sense for them. Upstart gets referral fees. Moser: I was just kidding. I hereby self certify that I am an Accredited Investor because: Late Stage Mature Pre IPO Unicorns - PreIPOSwap.com, Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on Reddit (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on WhatsApp (Opens in new window). I think it's a testament to the power of all of those data points that you were talking about. A lot of other lenders, SoFi, which we're about to talk about in a few minutes, follows a non-traditional lending model, but also wants to pursue generally high credit borrowers. What does Upstart do? Why don't you elaborate a little bit for us? It's become easy to transact in foreign currencies. If someone else figures out how to address that market equally well or better, then you could see a lot of competition risks. We're going to get the fourth quarter earnings. Finance that “an IPO … Usually, a company's pre-IPO shares are hard to come by unless you’re an institutional investor or an accredited investor. That's --. Moser: Yeah, it can be, and certainly it does seem like this is another business with, I don't want to say founders leading the way is necessarily competitive advantage, but it's certainly a sign that leadership is in the same boat as investors. This is his fifth SPAC. It's really gone beyond just banks, and it's more about tech companies partnering with banks. Moser: SoFi is popular. It's an interesting business model. A company that goes through the IPO … Private Equity “Pre IPO” – Investing in companies before they go public Private Equity is an asset class which involves unregistered securities. That's what it boils down to, is I just don't care. The idea is that it simplies the traditional process of IPOs, the IPO roadshow, the need to hire new underwriters, things like that. I want to see how that's playing out. Upstart, it's not taking out a lot of credit risk, in other words. It hasn't proven as a useful currency over the U.S. dollar, especially with all these fintech innovations that we're talking about. But what is SoFi (Not to be confused with “Sophie” a popular toy dog name) ?

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