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 talked to Andy to get his perspective on the last 8 years of evolution in the tech-enabled bookkeeping space, the geographical labor arbitrage behind the business models of InDinero and Pilot, and the steelman case for the upside of companies like Pilot.</li><li>We opened the office in The Philippines and we did that labor arbitrage.</li><li>Another platform that does really well is Xero.</li></ul>

We talked to Andy to get his perspective on the last 8 years of evolution in the tech-enabled bookkeeping space, the geographical labor arbitrage behind the business models of InDinero and Pilot, and the steelman case for the upside of companies like Pilot.We opened the office in The Philippines and we did that labor arbitrage.Another platform that does really well is Xero.

Andy Su, co-founder Of InDinero, On tech-enabled Bookkeeping's 14-year Evolution

<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

<ul><li>ChatGPT took 2 months to reach 100M global monthly active users (MAUs), making it the fastest-ever to that milestone ahead of TikTok (9 months), Instagram (30 months) and Pinterest (41 months).</li><li>Built to power semantic search and recommendations for ecommerce, Pinecone has hit an inflection point in its growth with social developer signals showing a 20x increase in usage thanks to ChatGPT and the rise of generative AI, all of which operate on vector embeddings.</li><li>With usage-based pricing, Pinecone is indexed on the upside of rapidly increasing AI workloads, and with the high switching costs and high net dollar retention characteristic of database businesses, Pinecone has the potential to build a reinvestment moat where it rides the tailwinds of high sales efficiency and revenue expansion to pour investment into R&amp;D.</li></ul>

ChatGPT took 2 months to reach 100M global monthly active users (MAUs), making it the fastest-ever to that milestone ahead of TikTok (9 months), Instagram (30 months) and Pinterest (41 months).Built to power semantic search and recommendations for ecommerce, Pinecone has hit an inflection point in its growth with social developer signals showing a 20x increase in usage thanks to ChatGPT and the rise of generative AI, all of which operate on vector embeddings.With usage-based pricing, Pinecone is indexed on the upside of rapidly increasing AI workloads, and with the high switching costs and high net dollar retention characteristic of database businesses, Pinecone has the potential to build a reinvestment moat where it rides the tailwinds of high sales efficiency and revenue expansion to pour investment into R&amp;D.

Chime Financial / Private Capital Markets

<ul><li>As the revenues grew so much, I think you got these crazy valuations.</li><li>In the Chime world, there would be times where we would basically have to prioritize which thing to put in front of the bank first because there just weren’t enough resources to get them all done in time.</li><li>Chime is probably in a better position than most companies to handle a recession because they have a lot of cash flow and a lot of investor money and they haven&#39;t blown it all.</li></ul>

As the revenues grew so much, I think you got these crazy valuations.In the Chime world, there would be times where we would basically have to prioritize which thing to put in front of the bank first because there just weren’t enough resources to get them all done in time.Chime is probably in a better position than most companies to handle a recession because they have a lot of cash flow and a lot of investor money and they haven&#39;t blown it all.

Ex-Chime Employee On Chime's multi-product Future

<ul><li>Plaid (2021 valuation: $13.4B) grew 47% in 2021 to reach $250M in revenue and crossed 500M+ connected bank accounts acting as a middleware for fintechs like Block (NYSE: SQ) and Robinhood (NASDAQ: HOOD) to connect to their customers’ bank accounts for moving money to their app or fast-tracking customer onboarding.</li><li>Plaid became a consumer brand—going beyond serving as a white-label account linking service—by putting its logo on the bank linking experience inside fintech apps, sitting in the middle of a 3-sided, Visa-like network of 500M customers, 11,000 banks, and 2,600 fintechs.</li><li>In recent years, data aggregation has stagnated and become commoditized—the major players Plaid, Yodlee, Finicity (acquired by Mastercard for $825M) and MX (2020 valuation: $1.9B) build proprietary connections with only the top ~500 banks while outsourcing development to offshore software companies in India or reselling connections from other data aggregators for the long tail of 11,000+ banks.</li></ul>

Plaid (2021 valuation: $13.4B) grew 47% in 2021 to reach $250M in revenue and crossed 500M+ connected bank accounts acting as a middleware for fintechs like Block (NYSE: SQ) and Robinhood (NASDAQ: HOOD) to connect to their customers’ bank accounts for moving money to their app or fast-tracking customer onboarding.Plaid became a consumer brand—going beyond serving as a white-label account linking service—by putting its logo on the bank linking experience inside fintech apps, sitting in the middle of a 3-sided, Visa-like network of 500M customers, 11,000 banks, and 2,600 fintechs.In recent years, data aggregation has stagnated and become commoditized—the major players Plaid, Yodlee, Finicity (acquired by Mastercard for $825M) and MX (2020 valuation: $1.9B) build proprietary connections with only the top ~500 banks while outsourcing development to offshore software companies in India or reselling connections from other data aggregators for the long tail of 11,000+ banks.

The Future Of Plaid's $250M Screen Scraping Business

United States

API for fintechs to access and enrich consumer-permissioned bank account data

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Plaid (PLAID US)

Andy Su, co-founder Of InDinero, On tech-enabled Bookkeeping's 14-year Evolution

Sacra interview with Andy Su, co-founder of InDinero.

Sacra

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

Pinecone: The MongoDB Of AI

TL;DR: ChatGPT hit 100M users in 2 months, spawning hundreds of startups and projects built on a combination of OpenAI’s APIs and vector databases...

Sacra

Ex-Chime Employee On Chime's multi-product Future

Sacra interview with an ex-Chime employee.

Sacra

The Future Of Plaid's $250M Screen Scraping Business

Plaid (dataset) indexed on the explosive growth of consumer fintech, growing 50% annually for the last 5 years and hitting $250M in revenue in...

Sacra

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