It’s a win for Boston, but a question mark for fintech kicks out more widely
It is big Today morning for fintech startups: Flywire, a Boston-based magnet for venture capital, has filed to go public.
FluWire is a global payments company that attracted more than $ 300 million as a startup, according to Crunchbase, which recently raised a $ 60 million Series F last month. We do not have a recent valuation of this, but the Pitchbook data show that the company’s February 2020, round value of $ 120 million is $ 1 billion on a flywire post-money basis.
So what we are seeing here is a fintech unicorn IPO. A great way to kick off the week, to be honest, though I thought Robinhood would be the next such debut film.
The fintech venture capital activity has recently heated up, making the Flywire IPO interesting. Its success or failure can normally determine the speed of fintech exits and fintech startup valuations, so we have to care about that.
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Regardless, we are doing our regular work this morning. First, what does Flywire do and who does it compete with? Then, take a closer look at its financial results as we expect to get our hands around our revenue quality, overall economics and growth prospects.
After that, we will discuss valuation and which venture capital groups are set to perform well in its plotting. The company had several backers, but Spark Capital, Temasek, F-Prime Capital and Bain Capital Ventures made up the major shareholder list with Goldman Sachs. Therefore, many firms and funds are expecting large flywire exit. Let’s dig in
What is flywire?
Flywire is a global payment company. Or, as stated in its S-1 filing, it is “a leading global payment enablement and software company.” And it thinks that its market, and by extension itself, has a lot of room to grow. While “substantial progress [have been] “In the payment technology in retail and e-commerce industries,” the company wrote, “large sectors of our global economy — including education, healthcare, travel, and business-to-business, or B2B, payments – The stages of digital transformation are still in the early stages. “
The same logic is behind Stripe’s epic valuation and the rising value of payment-focused companies like Phoenix.