PitchBook News - Chime claims Robinhood's fintech crown

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The Daily Pitch: VC

September 21, 2020

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Today's Top Stories

Chime passes Robinhood in US consumer fintech hierarchy

(Courtesy of Chime)

Online bank operator Chime has more than doubled its valuation in less than a year to $14.5 billion, making it the most valuable VC-backed consumer fintech company in the US.

The $485 million Chime landed for its latest fundraise underscores how some consumer tech companies have continued to grow during the pandemic. Chime is said to be profitable on an EBITDA basis, with its revenue tripling so far this year:

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Historically low interest rates are hammering the insurance sector. In a search for higher yield, underwriters across the industry are turning to private equity. [Institutional Investor]

Facebook pledged to crack down on the spread of extremist movements and satanic conspiracy theories on its platform. So far, it's failing. [The New York Times]

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Quick Takes


	The Daily Benchmark
	2016 Vintage Global Real Assets Funds
	VC Deals
	Affirm lands $500M for buy-now, pay-later platform
	Next Insurance eyes $2.25B valuation
	Scopely looks toward $3B valuation
	Outschool books $45M
	Portfolio Companies
	TikTok, WeChat blocked from US app stores
	Exits & IPOs
	Unity Software stock jumps more than 44%
	Ericsson to grab Cradlepoint in 5G push
	XL Fleet to go public in SPAC merger

The Daily Benchmark

2016 Vintage Global Real Assets Funds

Median IRR

9.78%

Top Quartile IRR Hurdle Rate

14.35%

1.18x

Median TVPI

Select top performers

Kimmeridge Energy Fund III

Cortland Partners Fund III

Blackstone Edison Managed Partners

*IRR: net of fees

100 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Affirm lands $500M for buy-now, pay-later platform

Affirm, a point-of-sale financing startup, has raised $500 million in a Series F led by GIC and Durable Capital Partners. Returning investors include Lightspeed, Fidelity Management & Research and Founders Fund. The San Francisco-based company, started by PayPal co-founder Max Levchin, has raised nearly $1.5 billion to date, reaching a $2.9 billion valuation last year, according to PitchBook data.

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Next Insurance eyes $2.25B valuation

Next Insurance plans to raise about $250 million in a round led by CapitalG that could value the company at $2.25 billion, according to Bloomberg. Founded in 2016 and based in Palo Alto, the company offers a variety of insurance products via its online platform geared toward small-business owners. In 2019, it reportedly raised $250 million in a round led by Munich Re at a valuation north of $1 billion.

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Scopely looks toward $3B valuation

Scopely, a mobile game developer, is seeking $200 million in funding that would value it at about $3 billion, according to Bloomberg. Wellington Management and NewView Capital are said to be leading the round. Scopely, which publishes mobile games like "Scrabble Go" and "Marvel Strike Force," was reportedly valued at $1.7 billion earlier this year after raising a Series D.

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Outschool books $45M

Lightspeed has led a $45 million round for Outschool, the developer of an edtech platform for students ages three to 18. Reach Capital, Union Square Ventures, SV Angel, FundersClub and Y Combinator also participated in the funding. Founded in 2015, the San Francisco-based company offers virtual classes to more than 500,000 students.

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Portfolio Companies

TikTok, WeChat blocked from US app stores

The US Commerce Department has banned new downloads of Chinese mobile apps TikTok and WeChat as of Sunday. For WeChat, additional restrictions also went into effect that make the app inoperable in the US. Similar prohibitions will apply to TikTok on November 12. Those restrictions could be lifted if TikTok addresses national security concerns, as it looks to finalize a deal with Oracle and the Trump administration regarding its US business.

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Exits & IPOs

Unity Software stock jumps more than 44%

Unity Software began trading Friday on the NYSE at $75 per share, up 44% from its IPO price of $52. The San Francisco-based developer of video game software raised $1.3 billion in the listing. Its shares closed the day at $68.35, resulting in a market cap of $18 billion. Unity is backed by investors including Sequoia (24.1% pre-IPO stake) and Silver Lake (18.2%).

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Ericsson to grab Cradlepoint in 5G push

Swedish telecom powerhouse Ericsson has agreed to buy Cradlepoint in a deal that values the Boise, Idaho-based networking company at $1.1 billion. The purchase will help Ericsson expand its 5G enterprise footprint. Cradlepoint has raised prior funding from investors including TCV, Sorenson Capital and Delta-v Capital, reaching a valuation of $414 million in 2017, according to PitchBook data.

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XL Fleet to go public in SPAC merger

XL Fleet has agreed to merge with Pivotal Investment II, a special-purpose acquisition company led by Jon Ledecky, a majority owner of the NHL's New York Islanders and the uncle of five-time Olympic gold medalist Katie Ledecky. The deal gives the Boston-based business an enterprise value of about $1 billion. XL Fleet builds electric solutions to transform fossil fuel-powered commercial fleet vehicles into hybrids; it was valued at $73 million with a round of venture funding in 2017, according to PitchBook data.

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