Plaid Valuation
Is Plaid overvalued at 13.5B? How do their future prospects compare to other rising fintech companies like Brex or Stripe? What are their chances of 3xing from here on? Would you join them now, or is it too late? TC 620k E6 #plaid #fintech #preipo #ipo #startup #tech
Future: bright. Majority of fintech in US use their services to some extend. Chance of 3x: only god knows. Personally I doubt it. It’s not easy for a 2B company to have stellar growth.
did you mean b2b ?
Yes. We can omit the first b since it’s always the company.
While I do think there’s an argument to be made that everything is overvalued (market is insane), I don’t think Plaid is overvalued relative to the market. Every major financial app uses Plaid and the Fintech space doesn’t seem to be showing any signs of slowing down. I’ve heard Plaid is already valued @~20B in the secondary market. If you can get your equity at 13.5 and you’re willing to take a risk then why not? They seem to hire extremely smart people and essentially own that space with minimal competition. It’s hard for anything to 3x but I’d say 2x isn’t much a stretch at all.
Heard this too. Take it with a grain of salt though. People are buying stripe at 200B valuation, but VC money isn't buying equity at that valuation. There are middlemen that take a cut on these secondary market transactions, increasing the implied valuation.
Whats’s the offer like ? And level?
Did you already have offer from Plaid or are you interviewing?
Contemplating whether to interview or not? Why?
I am also exactly in same situation, that's why asked :)
Their business model and growth space isn’t super clear to me but in principle they have access to real-time consumer purchase data in addition to whatever fees they can get api clients to pay them. Their valuation is 50x revenue which implies triple digit (revenue) growth year over year. This doesn’t necessarily mean triple digit stock price growth though.
How did you get triple digit rev growth = 50x revenue valuation. What’s the multiple for this industry? Also, would they be able to use that data? Probably hamstrung by regulations and things
Based on some blog that came up with some rough numbers based on past VC funding rounds. Hard to say how relevant those numbers still are. https://microcap.co/startup-valuation-revenue-multiple/#What_Startup_Valuation_Revenue_Multiple_Should_I_Use Don’t know about using data. Walmart and Costco sell market research based on their in store sales, not really the same though.
Can someone explain why Brex is that hyped? Aren’t they one of a dozen neobanks?!
Is brex a neobank? I thought they did corporate credit cards
Sorry. My bad
Lots of interesting comments on this post about Plaid's valuation. Can someone please help me decide between offers -- Instacart vs plaid, instacart's offer is 150k higher. Even given plaid's growth, I wonder if it'll be a match... Is there anyone I can DM to learn more about the two..
Feel free to dm I was in similar situation with instacart and chime
Thanks. Done
I had offer from Instacart and Brex. Instacart offer is 200k higher than Brex but I still prefer Brex. After one month Brex’s valuation increased from 7 to 12b so the two offers are almost equivalent.
True that. However plaid and instacart both more than doubled during pandemic and both plan to ipo in ~2 yrs. So I at best I'm only expecting them to double in 2 yrs, not more.
Hi op, did you end up joining? Can I DM you for details. Thanks
Everything is overvalued.
Elaborate?
Market cap to GDP ratio is the highest it's ever been. It's like 50% higher than the first dotcom bubble, let alone the second, let alone a normal economy. There's a ridiculous amount of money in equities compared to the actual amount of economic activity, which is also reflected in extremely high P/E ratios across the market. There's like nowhere to put money right now that isn't overvalued, because everyone else is also stuck in the same conundrum and has to put their money in anyway.