Today Personal Capital, a fintech company that had brought in over$265 million in personal financing, announced that it is selling itself to Empower Retirement, a company that offers retirement services to other companies. The offer is worth $825 million upon closing, with another $175 million in what are referred to as” scheduled development” incentives, according to a release. The offer is a most likely win for Personal Capital. According to Forbes the firm was worth$660 million around the time of its Series F round of funds, which it raised in February of 2019. The company was valued at around $500 million in December of 2016, suggesting that financiers who put capital in at that point, or in the past, likely did well on their investment.
Endeavor groups who put capital in later on, unless they had ratchets in location, likely didn’t make as much from the offer as they initially hoped. Regardless, a $1 billion extensive exit is absolutely nothing to discount; Facebook when bought Instagram for that much cash, and the sheer cheek of the transaction at the time almost broke the Internet.
During its life as a private business, Crosslink Capital, IGM Financial, Venrock, IVP, and Corsair each led rounds into the business according to Crunchbase information.
Personal Capital is a consumer service that helps folks prepare for retirement, and invest their capital. The company provides totally free monetary tools, and a higher-cost wealth management option for accounts of a minimum of $100,000. The company doesn’t like being called a robo-advisor, rather claiming to exist in the area in between old-fashioned in-person wealth management relationships, and fully-automated choices.
Regardless, the business’s sale price must assist market competitors price themselves. Here are Personal Capital’s core statistics (data via Personal Capital, precise as a May 31, 2020):
- AUM: $12.3 billion
- Users: 2.5 million
Wealthfront and M1 Finance and others, there are some metrics for you to weigh yourselves again. Obviously, other, completing business have different money making approaches, so the comparison won’t be 100% direct.
The Personal Capital exit suits the style that TechCrunch has actually tracked recently in which savings and investing applications have seen demand surge for their wares. This is a pattern not simply in the United States where Personal Capital is based, but likewise abroad.
Aside from Personal Capital’s exit today, we have actually likewise seen substantial deals in 2020 from Plaid, which sold to Visa for over $5 billion, Galileo’s exit for over $1 billion, and Credit Karma’s sale for north of $7 billion. In action to this specific news item, TechCrunch’s Danny Crichton noted that fintech is “most likely the most popular exit market right now.” He’s ideal.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.