For anyone who may be lost, IPO stands for initial public offering. It is when a company changes from private to public, and offers shares of their company to the public as well as public investors. 🤝
GenZ Tea ☕️:
GenZ appears to spend more time on the short riskier investments rather than the long passive ones. That’s some food for thought! 💡
Hey Tea Sippers,👋
I hope everyone’s excited for the holiday weekend. We don’t want to keep you for too long, so we’ll keep it short and sweet for you. There’s one major news story: The US has proposed a global minimum tax for multinational corporations. This will effect major companies such as Facebook and Amazon who have global presences. The Biden administration is on the move. 🏎
Tea Pods ☕️:
In this week’s rendition of Tea Pods ☕️, I would like to introduce the podcast Acquired. It talks about what makes great acquisitions successful, and gives you an inside scoop of the origin of these major tech companies. If you have free time, then I encourage you to take a listen! I recommend you start off with this one. The origin and success of Airbnb.
Hope you enjoy it, cheers!
What’s the Tea Today? 🤔
Ready for this week’s tea?☕️ We are talking Robinhood filing to go public 🤑, and LendInvest raising during their upcoming IPO 🤝.
Anyways, short and big stories ahead, get your tea ready and start sipping. ☕️
Also, before you get reading, don't forget to join our waitlist! Thanks. 😝
Steal from the Rich 🤌
Robinhood 🧑🎤
Robinhood is one of the biggest fintech companies to exist right now and they are set to IPO. They are that stock trading app that your grandma, little cousin, and even dog are talking about. They filed back in March and now it’s time for them to make their debut.
Their margins are crazy, and they have well exceeded the goals they were hoping to hit. Are they democratizing stock trading?
Revenue. Their revenue went from $277.5 million in 2019 to $985.8 million in 2020. (Drastic Inrease)
Robinhood was profitable with a net income of $7.4 million.
Robinhood generated revenue of $522.1 million.
While there are many positives, there are a few negatives…
Net Loss. They posted a recent loss of 1.44 billion dollars due to a legal issues.
Operting Expenses. They had 463.8 million in operating expenses…
The Big Gulp ☕️:
After reading all those numbers you’re probably concerned for Robinhood, but believe it or not they have still come out profitable. They closed the first quarter with a $2 billion dollar annual run rate! Overall, everyone has been intrigued by Robinhood’s success and many are curious to see how they will be able to maintain this run rate, and keep scaling as a business.
Let’s make a Deal 🤝
This UK startup is now profitable, and is expected to raise during their IPO in the next few days. What do they do? They are a fintech company that provides short term financing for UK properties.
The housing market is booming right now, and they are taking advantage of this opportunity!
Raise. They are expected raise 300 million Euros during their IPO.
Market. Since 2008 they have originated over 3 Billion Euros in mortgages.
It will be interesting to see how they leverage their present success to expand it and make their company even better.
The Pandemic did not set them back. They had a record breaking Q3 for applications signed, and that persisted within Q4 as well..
The Big Gulp ☕️: The fintech industry keeps getting bigger and bigger. There are companies trying to tackle a various array of problems, but it all circles back to one thing. Getting the consumer some money. LendInvest is currently profitable now let’s look to see what they do in the future after their IPO.
Extra Tea ☕️:
American Express: This big financial company is partnering with fintechs to help consumers get their mortgages.
Kikoff: This financial literacy + credit product raises $30 million dollars.
JPMorgan Chase: Just took a 40% stake in a Brazilian digital bank.
Orum: A bank-to-bank transfer company that rose a $56 million dollar series B round.
Sencha “Tea” Fact of the Day 🍃:
If you have $10 in your pocket and you have no debt, you are wealthier than 25% of Americans.
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