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>We felt like we were one of the only companies where our value prop was heavily centered around quality.</li><li>Pilot's ability to influence what you're using is real because it impacts the cost of doing the books.</li><li>The Pilot-takes-over-the-world scenario is where they automate more and more and more of it.</li></ul>

We felt like we were one of the only companies where our value prop was heavily centered around quality.Pilot's ability to influence what you're using is real because it impacts the cost of doing the books.The Pilot-takes-over-the-world scenario is where they automate more and more and more of it.

Pete Belknap, ex-engineering Manager At Pilot, On Gross Margin In software-enabled Services

Chime Financial / Private Capital Markets

<ul><li>Chime (launched 2012) found initial product-market fit marketing to millennials and the 75% of Americans living paycheck-to-paycheck with no-fee accounts and 2 days early access to their wages.</li><li>Chime can grow ARPU from the ~$30-$120 of a top interchange-based neobank to the $1,200 of a full-service consumer retail bank like a Bank of America and increase LTV by turning on additional features like crypto, investing, insurance, and most importantly, lending.</li><li>Chime’s lead gives it the chance to build the CNBC of finance superapps, positioned against Cash App’s meme-y, Wall Street Bets-adjacent finance superapp.</li></ul>

Chime (launched 2012) found initial product-market fit marketing to millennials and the 75% of Americans living paycheck-to-paycheck with no-fee accounts and 2 days early access to their wages.Chime can grow ARPU from the ~$30-$120 of a top interchange-based neobank to the $1,200 of a full-service consumer retail bank like a Bank of America and increase LTV by turning on additional features like crypto, investing, insurance, and most importantly, lending.Chime’s lead gives it the chance to build the CNBC of finance superapps, positioned against Cash App’s meme-y, Wall Street Bets-adjacent finance superapp.

<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.

United States

Payroll software for SMBs to manage employee and contractor payments, taxes, and benefits

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Gusto (GUSTO US)

Pete Belknap, ex-engineering Manager At Pilot, On Gross Margin In software-enabled Services

Sacra interview with Pete Belknap, former engineering manager at Pilot.

Sacra

Chime: The $1.3B/year could-be Superapp

Chime (dataset) built the #1 neobank in the United States by focusing on lower-income consumers looking for early access to paychecks. Now, they...

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

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