Frankel: [laughs] Most of the big tech companies that have gone public recently, are founder-led. Then COVID happens, so we didn't actually do it. It was a really fun conversation. I get why they see a big use case at it, I really do. SoFi has a lot of operations. There's data there that shows more and more consumers, particularly even younger consumers, really are trusting of a lot of these tech companies that partner with financial service providers in order to ultimately get done whatever they need to get done. It's not a surprise that the shares of the stock took off after this announcement. NOTICE: THIS WEBSITE IS FOR ACCREDITED INVESTORS ONLY. EquityZen is a marketplace for shares of proven pre IPO tech companies. At the present moment, it is possible to invest in SoFi … Moser: I guess. For Matt Frankel, I'm Jason Moser. Social Finance (“SoFi”) was founded in 2011 by Mike Cagney, Ian Brady, James Finnigan, and Dan Macklin. Branchless banking and decentralized finance? And last but not least, we discuss the recent correction in bitcoin and other cryptocurrencies, and why Matt and Jason aren't likely to buy bitcoin anytime soon. That sentiment rises to 81% for Americans aged between 18 and 34 years. That seems to be the case. I'm not saying it's not special. We wanted to dig into this one today for listeners. [laughs] I get it. And while banking will likely always exist in some fashion, they may be in the process of killing conventional financial institutions, with branches and physical locations potentially on their way out. Moser: [laughs] Yeah, it seems that way every week for you. Day trading is the ultimate hobby which can actually pay your bills, as opposed to things like “Second Life” which can actually ruin your “real life” that is IRL, lol .. As more participants come to the market, more players will emerge and the unfair practices of Robinhood will be kept in check. JUST is a Pre IPO food company Non GMO disrupting the food industry. Another really interesting part of the business is the Galileo Financial that they acquired in 2020. [laughs] You've got it figured out. We're going to take a look at what's in store for banks here, as earnings are set to begin on Friday, and a little bit more. Call Pre IPO Market Place To Learn About Buying & Selling Pro IPO Stocks (646) 941-8820. The initial public offering (IPO) market overcame a lightning-quick bear market in 2020 to bounce back to levels not seen since the dot-com boom. Without a doubt, America’s 73 million millennials  are changing the entire mindset around how money should be managed, saved, and spent. This week, because banks are getting ready to kick off earnings season on Friday, we wanted to just go ahead and get your take on a couple of things you are watching here for banks this coming earnings season. But it just showed me really even back then, the power of using that data in order to assess risk better. At the present moment, it is possible to invest in SoFi for as little as $25,000 if you are accredited. The growth of Robinhood has been a testament to this trend: Stock trading app Robinhood has revealed recently surpassed the 13 million active users mark. The new CEO, Charlie Scharf, has prioritized expense reduction, saying he wants to cut I think $10 billion of expenses off the bank. Moser: Well, Matt, speaking of fintech and banking of the future and all that jazz, we've seen over the past 24 hours, we don't get into bitcoin very often on this show. Frankel: Like I said, I'd make all those points with all due respect to the bitcoin fans, people who love the technology, I get it. But it still sounds pretty reasonable when you consider what some of these other fin techs are trading for, considering just the wide scope of what they do. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. Thanks for listening and we'll see you next week. No, I won't do that. I'm not saying there is not a use case. But what they have done is created a branding for Millenials that works, powered by PR and stats: LevelX also offers Pre IPO investing for accredited investors in companies like SoFi. They claim there are millions of potential borrowers that are creditworthy, but not by traditional FICO scores, and other bank metrics. If approved, they're going to be a bank. No. PreIPOSwap.com 1/9/2021 — New York, NY — With the news of another Pre IPO company going public via SPAC (SoFi) investors are … I don't need actual U.S. dollars to pay in U.S. dollars anymore. Sign up today to learn more about SoFi stock. Moser: Yeah. Frankel: I understand the concept. They are growing pretty impressively. I'm with you. You gave it the old Ricky Bobby. An IPO is when a company’s shares trade on a public market for the first time. Joining me this week, it's my man, [laughs] Certified Financial Planner, Matt Frankel. Frankel: That's not going to prevent a Reddit thread from popping up. [laughs] Well, Matt, before we wrap things up here, we normally like to wrap our shows up with ones to watch for our listeners. Pre-IPO Syndication Planning Large IPO’s are underwritten by a syndicate of investment banks. Frankel: There's a reason that there's over $100 billion in the second largest cryptocurrency. Everyone at least knows the term bitcoin since about 2014-2015. For one reason, may people now trading from home will simply get addicted to the habit of what many day traders have known for years. But as you mentioned, that can be a real source of capital, which is their business. I mean, you could say that inflation over time will fluctuate, but not by 20% in a day. We've got another company looking to IPO here very soon in SoFi. When we get to SoFi, you'll see there are in a bunch of different types of financial businesses. I just leave it at that. But if millennials aren’t happy with what’s always been, what’s their new definition of normal? Matthew Frankel: Pretty good, as you can see by the background, it's another day in paradise. Is this the beginning of a new trend? I'd call it the mid-level credit, like the people with fair credit that all the other companies are overlooking, and they tried to do that area of the market better than everyone else. Not only that, I checked right before we came on here, there are 4,308 different cryptocurrencies that are officially recognized right now. If you can make your own loans and not go through an intermediary, that's one less person you have to pay, so it can save money. II personally don't own any bitcoin. LevelX also offers Pre IPO investing for accredited investors in companies like SoFi. A banking charter really makes sense for them. Zero Hedge broke the story on how SoftBank has been a major participant in the options market. There are three arguments that I often hear in favor of bitcoin. The idea is that it simplies the traditional process of IPOs, the IPO roadshow, the need to hire new underwriters, things like that. It's not really what we cover here, but by the same token, we've seen bitcoin pull back considerably here over the last 24 hours. The Company primarily caters to early-stage professionals and offers variable, fixed rate … By combining it with an already public company, it makes it easier for some of these companies to go public. It's essentially a payment processing business with about 50 million accounts. But what is SoFi (Not to be confused with “Sophie” a popular toy dog name) ? I understand how it works. This reminds me a little bit of a company from a little while back. Xoom was a company, I think it was really a little bit ahead of its time almost, in that it was at the forefront of this AI powered finance model. Frankel: On a similar note, that age group you were just referring to, a lot of them skewed toward being self employed, myself included. I don't buy the use case for bitcoin. I did go through the process of getting some small business administration loans done for folks who were self employed, 15 years ago, maybe even more. 2,300 different retailers. The financial landscape is changing. Market data powered by FactSet and Web Financial Group. Frankel: That's a big motivation. They applied for and received conditional approval, like you said, in October, they got conditional approval for a bank charter. Or you can drop us an email at MFindustryfocus@fool.com. The last time we heard from Wells Fargo was the third quarter when the pandemic had not subsided, but it was definitely at a low. That sounds impressive, right? The Innovation Economy. [laughs] I'm not in the 18 -29 age group anymore, that'd be nice. Moser: Remember, as always, you can reach out to us on Twitter at @MFIndustryFocus. I/We represent a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes. Their revenue grew 44% in 2020, which I wouldn't expect a lender to grow that much in 2020. It's not a no-risk investment and it's really priced for a lot to go right in the next couple of years. But they rested on their laurels, and Xoom got in there, and essentially started using artificial intelligence, and data points, and automation in order to make this an easier experience. I don't want to store a value that can fluctuate by 20% in a day. But [laughs] SoFi does have a big mortgage operation. I don't see the use case that's going to appeal to main street. Like I mentioned in other posts, some platforms allow investors to invest in pre-IPO companies. Virgin Galactic was another one. Pre-IPO shares … sofi.com | FinTech | Founded: 2011 | Funding to Date: $3.28B. Upstart as a personal lender, unlike most of these Fintechs, their main premise is that traditional banks either are not convenient enough, or just don't serve the population well enough, and they aim to solve that problem. We're going to get the fourth quarter earnings. I know money is not the biggest motivating factor for everybody, but you got to think it's there. EquityZen is a marketplace for shares of proven pre IPO tech companies. But that is a big advantage, especially when one of them still has a lot of skin in the game like that. But for the time being, it's not a stored value. Listen, man, I appreciate you taking the time to jump on as always. Since 2009, SharesPost has successfully closed thousands of client investments. Another company that we talked about on this show before, and a firm, I think John Maxfield and I did show a little while back when we went through a firm's S-1, and there was just an interesting data point in there that really spoke to how consumers view the state of finance today. Prior to an IPO, a company is “private,” which means that shares of stock are not available for sale to the general public. It's been around for a little while, and it's interesting to see how these businesses evolved because it really started out as an alumni funded lending model that ultimately it was just helping students and graduates deal with student loans. You have some opinions on the matter. It goes public, raises usually a few $100 million, then it seeks an acquisition target. The stock trades for about twice its par value, which implies a market cap of about $17 billion once it actually goes public. I mean, I think we've seen some adjustments to the FICO score in order to make it a little bit more modern, and account for today's consumer. 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Frankel: So far, to my knowledge, Upstart has no desire to become a bank. SoFi IPO. I don't care. The unemployment benefits, in a lot of cases, were still going onto the third quarter, for example. I appreciate you digging into Upstart and teaching us a little bit more about that business. Let's talk a little bit about what the advantages of this business really are. Ultimately, what it resulted in, Xoom was really taking a lot of share, PayPal saw that, jumped in there, made the acquisition before they got too big. The things I'm watching are the default rate. It's a volatile asset. That's pretty impressive. I don't see widespread adoption happening. Then it will be interesting to see how the Robinhood traders ebb and flow the market cap of their own trading platform, in real time. link Pre IPO Shares Available We have access to Pre IPO shares of SpaceX, Impossible Foods, Sofi, Grab, Ripple Labs, Stripe, automation Anywhere, UI Path, Robinhood, Data Bricks and more. 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That have at least one employee, there 's an insurance division that partners with other insurance companies to the.

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