From trading sneakers to providing big data insights to retail investors, these five fintech startups all have something to stand out in 2021
We’re not quite out of 2020 yet, but naturally our thoughts turn to the new year as the old one begins to fade and attention turns to possible trends and areas of interest in the year. over the next 12 months.
Over the past few years, Business Insider has asked major VCs what startups they think could ‘take off’ in the coming year and the report is worth reading, especially since this year ago. a separate section for “hot trends” which included many fintech is in their number.
Here are 5 of Business Insider’s choices to watch in 2021:
Albert is an app designed to help people manage their money more efficiently, allowing them to track their bills, spending habits and returns on investments. Albert does this by using human advisers who help guide his users. The company has raised just under $ 72.0 million so far and has added new services such as short-term advances where customers can access $ 100 to facilitate cash flow.
Chime is an online banking tool for consumers, headquartered in San Francisco, offering savings and credit accounts as well as free payday loans and overdrafts. Chime customers can also access mobile payments, automated savings, and a Visa debit card. Chime does not provide the underlying banking services, but works in partnership with two U.S. FDIC-insured banks, Stride Bank and Bancorp Bank. To date, Chime has raised $ 1.54 billion and as of September 2020, the banking app had over 5.0 million account holders, making it one of the fastest growing banking startups. in the USA.
Commonstock is an early stage startup that seeks to harness the massive growth in investment and trading in the stock market seen in 2020. Similar to Public Commonstock of Denmark aims to create social communities in which novice investors can chat with experts and learn to do trades for themselves.
The Commonstock app is still in beta testing, but there are some eye-catching features, such as the ability to link membership to an existing brokerage account, which will allow users to validate the performance of more experienced members and mentors. so that what you are told corresponds to what really happened.
Commonstock has only raised $ 11.20 million so far and any future fundraising will be somewhat of a litmus test for Venture Caps’ appetite for social trading stocks in light of recent events at the market. Robin Hood market leader. They may think it is time for the disruptors themselves to be disrupted.
StockX is an online exchange where traders can buy and sell high value and collectible sneakers and other casual wear. While this may seem like a niche market, it has been growing since the mid-80s and the launch of Nikes Air Jordan one, Limited. Editions of new sneakers are often in high demand, and collectors and traders use algorithms to ensure they secure an allocation of these sneakers at launch that they can then resell on StockX at a profit. A process very similar to the spreading of new issues and IPOs.
The market for rare and limited-edition sneakers is estimated at around $ 2.0 billion per year, but is expected to grow to some $ 30.0 billion by the end of the decade. This growth potential has enabled StockX to raise $ 565 million and achieve a Unicorn valuation of over $ 1.0 billion.
To fall over
Toggle is a service designed to provide financial market information to retail investors. The company was founded and managed by former hedge fund traders who wanted to bring the data benefits they enjoyed to the general investor audience.
Toggle offers a variety of platforms and products such as Copilot which analyzes portfolios and ranks them on a number of ratings and quantitative metrics to provide an overall rating for each credit. These evaluations can then allow traders to optimize their portfolios.
Toggle also provides educational materials, data, and data alerts. as well as a service for professional investors. Toggle did not disclose the amount of external funding it raised, if any.
However, given that its founders worked at Duquesne Capital, Fortress, Brevan Howard and Alliance Bernstein, they will not lack influential and wealthy contacts.
The smart use of market and alternative data in investing and trading is a growing trend and it is a trend that has been accelerated by the pandemic and it is not going to go away any time soon.