When Will More FinTechs Go Public? Are There FinTech IPOs in the Near Future?

When Will More FinTechs Go Public?

Number of New FinTech Unicorns by GeographyFor the past several years, even as there’s been plenty of chatter about FinTechs entering the mainstream, only a few of these companies have taken the step of going public. Of course it’s easy to see why when you consider that both Lending Club and OnDeck have struggled to retain their market valuations after going public (although Square has fared much better since their November 2015 IPO). These disappointing performances coupled with an overall draught in tech IPOs may have dissuaded some emerging FinTechs from following suit, but there is some reason to think that could change.

As Business Insider notes, tech IPOs are on the rise once again. In fact 2017 has already seen 11 tech startups go public compared to just four in 2016. At the same time the FinTech sector has some newly certified unicorns — a term that implies a certain rarity that is hardly applicable at this point —  with Coinbase, Robinhood, and more than a dozen others joining the billion-dollar valuation club in the past year. So could more FinTech IPOs be on the horizon?

One recent IPO that many FinTechs will surely be monitoring is Elevate Credit ($ELVT). The subprime lender with an emphasis on analytics went public in April of this year with a price of $6.50 per share. As of this writing, the stock is trading for about a quarter above that price. Unfortunately it should also be noted that Elevate was originally expected to debut with a price in the $12 to $15 range before settling for nearly half that. While that’s not an assuring sign for FinTechs, it’s hard to say if investors’ aversions are to the alternative lending field itself or the subprime market that serves as Elevate’s specialty.

Looming over the FinTech IPO field nearly as much as who did go public is who hasn’t: SoFi. That online lender, which is valued at over $4 billion in the private market, had been eyeing a late 2016 initial public offering but later pushed back their plans indefinitely. Sources recently told CNBC that an IPO from the company could now be more than a year away. Naturally the aforementioned Lending Club and OnDeck stocks are often mentioned when articles about SoFi’s public potential are written, with analyst Bob Ramsey telling Bloomberg, “Lending Club and OnDeck were the two pioneers in the marketplace to go public and those stocks haven’t worked. That does mean investor appetite is muted. So it’s not surprising that guys like SoFi will say ’we liked LendingClub’s IPO valuation better than the current valuation so let’s wait until the market is receptive, then we will do it’.”

With all that said, there still seems to be some hope for FinTech IPOs in the coming years. Afterall that term casts a wide net, including everyone from the market-maligned alternative lenders to consumer services brands like Credit Karma (another rumored IPO candidate). However, with private valuations continuing to prove a hard sell on the public market, many of these emerging unicorns might elect to simply wait and watch how others perform. Sadly, until some more brave companies come forward to try their luck on the open market, it seems less likely that FinTech will not reach the mainstream levels it’s long been expected to.

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

FedEx Announces Winners of 11th Annual 2023 Small Business Grant Contest

Nearly three months after the entry period ended, FedEx has announced the winners of its 11th annual Small Business Grant Content. This year's event saw more than $300,000 in funds going to a variety of small businesses across the nation. Last month, the company revealed 100 finalists, with that list now being narrowed down to just 10 winners. This year's grand prize winners included KindVR, The Cupcake Collection, Up In...
H-E-B and Central Market  credit cards

Imprint Launches Credit Cards from H-E-B and Central Market 

The FinTech Imprint is partnering with the popular Texas-based grocery chain H-E-B for a pair of new rewards credit cards. This week saw the launch of the H-E-B Visa Signature Credit Card as well as the Central Market Visa Signature Credit Card. With these two (nearly identical) options, customers will be able to earn rewards on groceries and beyond. First, both versions of the card earn up to 5% back on select...
Summer app

Student Loan Benefit FinTech Summer Raises $6 Million

For years, student debt has been one of the most talked about financial topics. What's more, while the debt itself has become a major part of many Americans' lives, discussion of student loans has become political due to efforts to forgive certain loan repayments. However, while we wait for resolution on that front, a FinTech that brings student debt benefit solutions to employers and consumers has raised a new round...
Choice Privileges Select Card

Choice Hotels, Wells Fargo Debut Choice Privileges Select Card

With spring well underway and the summer travel season now just around the corner, Choice Hotels and Wells Fargo have unveiled their latest co-branded credit card offering. Today, the two companies announced the Choice Privileges Select Mastercard. Carrying an annual fee of $95, this card will serve as the premium option in the hotel brand's new lineup. Looking at the Choice Privileges Select, it offers a mix of rewards categories....
Melissa Urban holding a Ness card

Health and Wellness Rewards Card Ness Partners with Whole30

In recent years, several unique rewards cards have come to market. These include offerings from FinTech startups as well as brands looking to do something special for their loyal fans. On that note, a recently-announced rewards credit card offering is now working with a popular brand to introduce new benefits for customers. This week, the Ness Card (which is issued by The Bank of Missouri) unveiled a new partnership with...