Private Markets, Angel and Secondary Investing, Sacra

Sacra

Private Markets, Angel and Secondary Investing

Bringing transparency to private markets so investors, founders, and employees can build on conviction. Sacra delivers deeply researched insights on the private companies shaping tomorrow's markets. By surfacing the data, context, and operator perspective that are missing from private markets today, we help secondary buyers and sellers price equity accurately and unlock liquidity for the people building these businesses.

Private Capital Markets

<ul><li>In opposition to incumbent 401(k) providers like Fidelity/Vanguard charged savers 1%-2% of assets under management (AUM), TaskRabbit co-founder Kevin Busque founded Guideline ($80M ARR) in 2015—as an employee-centric 401(k) benefits companies could use to attract talent.</li><li>Guideline’s business model shifted the burden of paying for benefits from the individual to the company—with a flat monthly SaaS fee, a $8 per/mo charge per employee, and a nominal 0.08% take rate on AUM.</li><li>Zooming out, Guideline’s opportunity from here is large—all U.S. 401(k) plans held $7.3 trillion in assets, and Guideline has roughly $8.5B on the platform, or about 0.1% of that 401(k) total.</li></ul>

In opposition to incumbent 401(k) providers like Fidelity/Vanguard charged savers 1%-2% of assets under management (AUM), TaskRabbit co-founder Kevin Busque founded Guideline ($80M ARR) in 2015—as an employee-centric 401(k) benefits companies could use to attract talent.Guideline’s business model shifted the burden of paying for benefits from the individual to the company—with a flat monthly SaaS fee, a $8 per/mo charge per employee, and a nominal 0.08% take rate on AUM.Zooming out, Guideline’s opportunity from here is large—all U.S. 401(k) plans held $7.3 trillion in assets, and Guideline has roughly $8.5B on the platform, or about 0.1% of that 401(k) total.

<ul><li>Direct deposit switching APIs like Pinwheel are redirecting the $10T of payroll deposited in incumbent banks towards neobanks and novel vertical finance apps.</li><li>For neobanks like Chime ($25B), Varo ($2.5B), and Current ($2.2B), direct deposit customers can bump up LTV by 30x-40x.</li><li>Chime found initial product-market fit offering 2 days early paycheck access with $100 in fee-free overdraft to direct deposit customers and spent millions in ads convincing American customers to switch.</li></ul>

Direct deposit switching APIs like Pinwheel are redirecting the $10T of payroll deposited in incumbent banks towards neobanks and novel vertical finance apps.For neobanks like Chime ($25B), Varo ($2.5B), and Current ($2.2B), direct deposit customers can bump up LTV by 30x-40x.Chime found initial product-market fit offering 2 days early paycheck access with $100 in fee-free overdraft to direct deposit customers and spent millions in ads convincing American customers to switch.

Pinwheel, Argyle, Atomic, And The Direct Deposit Switching APIs Funding $10T To Neobanks

<ul><li>Deel launched out of Y Combinator’s Winter ‘19 batch as a way for companies to hire anywhere in the world.</li><li>Today, freelancer earnings represent $1.4T of $25T in annual B2B payments.</li><li>Contractor payroll is quietly becoming a core part of the products of several billion-dollar market cap companies.</li></ul>

Deel launched out of Y Combinator’s Winter ‘19 batch as a way for companies to hire anywhere in the world.Today, freelancer earnings represent $1.4T of $25T in annual B2B payments.Contractor payroll is quietly becoming a core part of the products of several billion-dollar market cap companies.

Contractor Payroll: The $1.4T Market To Build The Cash App For The Global Labor Market

<ul><li>Global payroll companies like Deel ($12B) and Remote ($3B) replicate Gusto’s approach to abstracting away boundaries to hiring on a global scale—positioning themselves to eat up domestic payroll as a use case.</li><li>Gusto drives high margin subscription revenue from SMBs using its payroll/HR services and lower margin commission revenue from insurance carriers for selling medical/vision/dental/life insurance.</li><li>Payroll is still a massive market with several $10B+ giants like ADP ($104B), Paychex ($48B), Paylocity ($14B)—and Gusto is still growing at 50%+ YoY.</li></ul>

Global payroll companies like Deel ($12B) and Remote ($3B) replicate Gusto’s approach to abstracting away boundaries to hiring on a global scale—positioning themselves to eat up domestic payroll as a use case.Gusto drives high margin subscription revenue from SMBs using its payroll/HR services and lower margin commission revenue from insurance carriers for selling medical/vision/dental/life insurance.Payroll is still a massive market with several $10B+ giants like ADP ($104B), Paychex ($48B), Paylocity ($14B)—and Gusto is still growing at 50%+ YoY.

<ul><li>Wingspan is a connected system between companies and freelancers that makes working with freelancers and contractors effortless.</li><li>We're running a couple hundred million dollars of payments right now and doubling every month or two.</li><li>We have an international payments infrastructure we can use to pay people very quickly over local rails throughout the world.</li></ul>

Wingspan is a connected system between companies and freelancers that makes working with freelancers and contractors effortless.We're running a couple hundred million dollars of payments right now and doubling every month or two.We have an international payments infrastructure we can use to pay people very quickly over local rails throughout the world.

Anthony Mironov, CEO Of Wingspan, On Building Financial Services For Contractors

United States

Software for hiring, paying, and managing global contractors and employees compliantly

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Deel (DEEL US)

Guideline: The $80M/year 401(k)

Gusto, Rippling and Deel have turned into app stores for HR, benefits and finance, both enabling new companies through the access to clean payroll...

Sacra

Pinwheel, Argyle, Atomic, And The Direct Deposit Switching APIs Funding $10T To Neobanks

Direct deposit switching APIs like Pinwheel are redirecting the $10T of payroll deposited in incumbent banks towards neobanks and novel vertical...

Sacra

Contractor Payroll: The $1.4T Market To Build The Cash App For The Global Labor Market

Some of the biggest B2B companies in the world are going after the $1.4T market for contractor payroll.

Sacra

Gusto Vs. Rippling Vs. Deel Vs. Check

TL;DR: We did a report on Gusto—check it out here. Sacra members can access our full revenue, growth, and comps dataset here...

Sacra

Anthony Mironov, CEO Of Wingspan, On Building Financial Services For Contractors

Sacra interview with Anthony Mironov, CEO of Wingspan.

Sacra

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