Venture Backed IPOs in FinTech

Monsters of Growth: Lessons From Publicly Traded FinTechs

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The largest Insurtech company in the world isn’t in San Fransisco or Silicon Valley — but in Shanghai. As a matter of fact, Zhongan has more customers than any other insurance company in the world. Zhongan was founded in 2013 and 4 years later, went public.

The average company in our cohort has a market cap of $6.5b, founded 9 years ago, and is growing at 65% YoY. What makes these companies so successful?

It may surprise you to learn:

• FinTechs are some of the fastest growing listed companies, as PurpleBricks grows @ 150% YoY, Zhongan @ 84%, Qudian @ 70%, and RedFin @ 43%.
• Zhongan — arguably the worlds most successful InsurTech business, has an average gross written premium of $1.97, writing billions of policies to hundreds of millions of customers.
• Chinese entrepreneurs are building $10b FinTech businesses in the span of 4–5 years. Zhongan began selling insurance in in 2014 and Qudian began making loans in 2015.
• Square generated $452m in revenues in their last quarter, as they grow 21% YoY. Its market cap is now $20b.
• Subprime lending is out of favour as shares of Qudian dropped 40% since the IPO. Elevate completed its IPO at 50% of its expected valuation range.
• Valuations for lending companies vary greatly as LendingClub trades at 2.3x their quarterly revenue run rate, Qudian @ 3.8x, Elevate @ .4x, and Credible @ 16x (pro-forma at IPO).

Find this, and much more in our 47-page slide deck.