The FinTech & PropTech Weekly Round-Up: Week 5
We(NoLonger) work for WeWork, Chime chimes up at a $1.5bn valuation, and JLL Spark lights its fuse. Plus a couple other bits and pieces.
We(NoLonger) work for WeWork
WeWork (now officially known as ‘The We Company’) is a behemoth in the CoWorking / Living space, and it is backed by another behemoth, SoftBank. With all its cash ($8bn or so), it has been able to, and continues to, grow fast. However, this growth results in the occasional cull of under performers, 3% (approximately 300) of its global workforce as of late. More to come?
Our verdict: It’s all a little crazy over there at WeWork. Big investment, big burn… Big fail?! We still can’t quite get to grips with its tech-like multiples.
Investors: With 14 funding rounds under its belt, alot. But their main patron remains the SoftBank Vision Fund
Source: Kate Clark, TechCrunch
Chime chimes up at a $1.5bn valuation
Led by DST Global, Chime raised another $200m in funding, upping its valuation three-fold to $1.5bn. Chime is one of a number of neo banks, which seem to be raising big sums on a nearly weekly basis. In this case though, the amount seems to trump that of Monzo, N26, Revolut, et al. This is possibly justified by the fact that Chime has managed to attract 3m users to date.
Our verdict: Neo banks continue to be hot, especially as a number of European players are now turning their attention towards the US, Chime’ home market.
Investors: Cathay Innovation, Coatue Management, Dragoneer Investment Group, DST Global, Forerunner Ventures, General Atlantic, ICONIQ Capital & Menlo Ventures
Source: Madeline Shi, Business Insider
JLL Spark lights its fuse
JLL and Concrete VC are teaming up for the latest iteration of JLL Spark. This is hot on the heels of Colliers International’s announcement last week, that its second accelerator programme is going live shortly (see, previous article). The good news here, is that by partnering with Concrete VC (a prolific adviser / investor of late), JLL is moving its focus beyond the US and towards EMEA.
Our verdict: We are PropTech, we love PropTech . So anything to do with PropTech, is well, ‘golden’.
Investors: Concrete VC
Source: Linda O’Flanagan, Real Estate Weekly
Raisin turns the tables
On the back of its notable funding round last month (see, our previous article), Raisin has gone and bought a bank, MHB Bank. This isn’t too surprising, as those who use Raisin know that MHB Bank is its fronting bank in Europe (ex. the UK). Plus, with Raisin having the cash to spend, why not buy the company you’re paying to process all of those deposits.
Our verdict: We’re not too surprised at this, as the two companies have always been operationally close. I’m just jealous Raisin now have a banking license!
Investors: Index Ventures, PayPal, Ribbit Capital & Thrive Capital
Source: Editorial Team, Finextra
Ant Financial at its core
Ant Financial just can’t stop making the headlines, and why not when they are taking over the financial world one acquisition and product at a time! This week, they announced a new core banking product, which allows financial institutions to run their systems on top of their solution. I imagine the US government will have a sneaking suspicion at this announcement.
Our verdict: Should we be surprised, probably not.
Investors: Index Ventures, PayPal, Ribbit Capital & Thrive Capital
Source: Henry Vilar, Fintech Futures
