Plaid Valuation

Nov 9, 2021 39 Comments

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

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  • Datadog
    Storycat

    Go to company page Datadog

    Storycat
    Everything is overvalued.
    Nov 9, 2021 3
    • Google
      __human__

      Go to company page Google

      __human__
      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.
      Nov 9, 2021
    • Plaid
      islandb0i

      Go to company page Plaid

      islandb0i
      Bruh just collect one million dollar receipts of ownership for NFT apes. Those aren’t overvalued at all
      Nov 9, 2021
  • Apple
    mnKe75

    Go to company page Apple

    mnKe75
    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.
    Nov 9, 2021 9
    • Amazon
      melo89

      Go to company page Amazon

      melo89
      Makes sense. It seems like Plaid has a lot of growth ahead over next 24 months so I suppose they’ll be in a better spot to IPO in 2023-2024. However, no guarantee that the market in 2 years will be as hot for IPO’s. Seems like it’s currently a great time to go public
      Nov 9, 2021
    • Plaid
      dhshxbbs

      Go to company page Plaid

      dhshxbbs
      Echo @little_oof the question is that when we ipo, the market may change drastically, e.g. from growth minds to value, and it won’t look rosy for us.
      Nov 10, 2021
  • Amazon
    melo89

    Go to company page Amazon

    melo89
    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.
    Nov 9, 2021 1
    • OP
      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.
      Nov 9, 2021
  • 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.
    Nov 9, 2021 3
  • Airbnb
    irjdncocid

    Go to company page Airbnb

    irjdncocid
    can someone explain Plaid's valuation ?
    Jan 22 2
    • Meta
      iphfdiupas

      Go to company page Meta

      iphfdiupas
      Someone would have to break an NDA to explain it, but it's not hard to find some of the numbers with a quick search in blind.
      Jan 30
    • Airbnb
      hekdibdj

      Go to company page Airbnb

      hekdibdj
      Yes, sharing almost anything including offer numbers is breaking NDA. Sharing some reasonable info is only beneficial for the company. It will help to attract talent
      Jan 30