Lending Club IPO Shows The Profit Potential For Financial Technology Investments

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Lending Club’s $5.4 billion initial public offering on the New York Stock Exchange is more than just the largest IPO for a U.S.-based tech company this year, it’s also planting the flag for an entire ecosystem of startup companies engaged in overturning the ways in which the world deals with money.

“This is not some narrow addressable market, it’s trillions of dollars and represent billions of dollars of opportunity,” says Matt Harris, a managing director with Bain Capital Ventures who specializes in backing financial services technology companies.

Norwest Venture Partners is the largest holder with 50.8 million shares, and a roughly 14% stake in the company. EquityZen has a breakdown of how much investors from each round stand to gain on their participation in each of the rounds here.

So which businesses could be the next wave of financial technology companies to go public? The financial advisory services companies like WealthFront, which manages over $1 billion in assets, and Betterment, which now has over 50,000 customers using its service and has a partnership with Fidelity, are still too early.

 

To read the full article, visit http://techcrunch.com/2014/12/11/lending-club-ipo-shows-the-profit-potential-for-financial-technology-investments/

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