I dig deeply into the $5.3 billion acquisition of data aggregator Plaid by $500 billion payments network Visa. We examine why this deal is worth 25-50x revenue, while Yodlee's sale to Envestnet was priced much lower. We also look at how Plaid could be an existential threat to Visa, and why paying 1% of marketcap to protect 200 million accounts may be a good bet. Broader implications for product manufacturers across payments, investments, and banking also emerge -- the middle is getting carved out, and infrastructure providers like Visa or BlackRock are moving closer to the consumer.
Credit Karma is seen as one of the hottest fintech startups in the world and a potential 2020 IPO candidate;...
Credit Karma has had huge success in the US providing free credit scores and recommending products for their users; they...
Autonomous finance isn’t a well known term within fintech, but it may be the biggest innovation in the consumer finance...
Credit Karma is positioning itself to be more than just a place to check your credit score; the company currently has 80 million customers and currently has advantages in significant scale and the data it houses; they are now looking at using chatbots with their acquisition of “Penny” to further their relationships with their customers. Source
Credit Karma is best known for offering free credit scores; they now have 100 million users and are valued at...
After the Bust, Are Bitcoins More Like Tulip Mania or the Internet? Google’s Ulku Rowe on how innovative financial services...
Lend Academy profiles a real borrower who recently went through Credit Karma to apply for a debt consolidation loan; the...
Credit Karma’s main feature has been allowing users to see their credit score; the company launched a identity monitoring tool last year and is now expanding the data it scans to include the dark web; the tool will now search through 13 billion data breaches, up from 4.5 billion. Source
According to the WSJ, Credit Karma isn’t receiving any proceeds or issuing new shares as part of the deal; Silver Lake will instead be purchasing shares from early investors and employees in a secondary sale; the investment values the company around $4 billion; Credit Karma generated $500 million in revenue in 2016 and according to CEO Kenneth Lin they have been growing at a double-digit pace since; Credit Karma last raised money in 2015. Source


