Update: An update of this post was published in July 2015.
It’s been a year since we published the first fintech unicorn list. It includes companies (and exits) in the financial sector (either direct services or software) founded since 2000 and worth at least $1 billion (actually we are using $900 million as the floor).
This year, the list has more than tripled to 36 companies, up 25 from the 11 last year. Partly, it’s a reflection of increased transparency into global valuations. For example, China has four alt-lenders on the list compared to zero last year. But mostly it’s a dramatic increase in private company valuations, especially in the lending sector.
In addition, we’ve listed 34 “semi-unicorns” (narwhals?) with estimated values of $500 million to $800 million. In total, there are 70 companies with a total estimated value of about $100 billion (~ 2 Ubers).
Here is the sector breakdown:
1. For private companies (28 of the 36 unicorns), values are hugely dependent on the terms of the deal (read this), so they are not comparable to public company valuations.
2. About half the unicorn valuations are derived from public statements by the companies or investors during recent rounds or acquisitions. However, half are estimated by analysts/algorithms from tracking firms, especially Funderbeam, an Estonian startup that’s relatively new on the scene. So there is a lot of room for error in these valuations.
3. For the “near-unicorn” list we’ve added a number of companies that have recently raised large rounds, but have not made public statements about valuation. We estimated most of those at $500 million, but these are simply educated guesses.
4. We are using a broad definition of fintech including real estate. Also, we’ve included a few Finovate alums that are not pure-play fintech, but that have a significant financial services business.
The Fintech Unicorn List
|Company||Sector||Finovate Alum?||Value ($Bil)||Value Source|
|1. Lufax||Lending||No||10.0||WSJ (4/15)|
|3. Square||Payments||No||6.0||Oct 2014 round|
|4. Zillow||Real estate||No||5.4||Public|
|5. Zenefits||Insurance||No||4.5||May 2015 round|
|6. Stripe||Payments||No||3.5||Dec 2014 round|
|7. Powa Technologies||Payments||Yes||2.7||Nov 2014 round|
|8. Klarna||Payments||Yes||2.5||Mar 2014 round|
|10. CreditKarma (note 1)||Credit Reports||Yes||2.0||Funderbeam|
|10. One97||Payments||No||2.0||Feb 2015 round|
|14. Prosper||Lending||Yes||1.9||April 2015 round|
|16. LifeLock||Credit Reports||No||1.5||Public|
|16. Adyen||Payments||No||1.5||Dec 2014 round|
|21. SoFI||Lending||No||1.3||Feb 2015 round|
|21. Housing.com||Real estate||No||1.3||Funderbeam|
|21. Revel Systems||Payments||No||1.3||Funderbeam|
|25. On Deck||Lending||Yes||1.2||Public|
|26. FundingCircle||Lending||No||1.0||CB Insights|
|26. Kofax||Doc mgmt||Yes||1.0||Acquired (Lexmark)|
|26. TransferWise||Payments||Yes||1.0||CB Insights|
|26. Trusteer||Security||No||1.0||Acquired (IBM)|
|26. Mozido||Payments||No||1.0||Finovate est|
|32. Avant||Lending||No||0.9||Forbes (4/15)|
|32. IEX Group||Investing||No||0.9||Funderbeam|
|32. ClimateCorp||Insurance||No||0.9||Acquired (Monsanto)|
|Oportun (Progreso Financiero)||Lending||Yes||0.7||Finovate est|
|Circle Internet Finance||Bitcoin||No||0.6||Funderbeam|
|CAN Capital||Lending||Yes||0.5||Finovate est|
|Receivables Exchange||Lending||Yes||0.5||Finovate est|
|21 Inc||Bitcoin||No||0.5||Finovate est|
|Financial Software Systems||Risk Mgmt||No||0.5||Finovate est|
|Strategic Funding Source||Lending||Yes||0.5||Finovate est|
|Ping Identity||Security||Yes||0.5||Finovate est|
Personal Capital Investing Yes 0.5 Finovate est
Source: Compiled by Finovate, 8 May 2015
1. Update (24 June 2015): Credit Karma now valued at $3.5 billion (source: Finovate)