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Digital Bank Chime Goes Public, Sparking Capital Frenzy! Early Investors Achieve 67x Returns, Creating a 'Wealth Myth'
American digital bank Chime will go public on NASDAQ on June 12, with a valuation exceeding $11 billion. Its early investors have received substantial returns, such as Crosslink Capital, which invested $6.4 million in the Series A funding round in 2014, and this investment is now worth about $430 million. Even after selling over $80 million worth of shares in the secondary market, the return remains over 67 times. PivotNorth Capital, founded by a former partner at Sequoia Capital, sold all its shares in 2019 for nearly $6 billion, achieving about 100 times return.
Chime was founded in 2013 and is headquartered in San Francisco, primarily serving Americans with monthly incomes below $100,000. It partners with Bancorp Bank and Stride Bank to offer no-fee accounts and early access to paychecks, and by March 2025, it had 8.6 million active members, a 23% increase in user base compared to 2024, with 67% of members using it as their primary account. Furthermore, starting in 2023, Chime launched a MyPay small loan product similar to 'Huabei', contributing 12% of its revenue in the first quarter.
However, well-known investment institutions that entered later, such as Sequoia Capital Global Equities Fund, SoftBank, and General Atlantic, are now facing paper losses or significant reductions in earnings due to Chime's inflated valuation during the pandemic.
Follow me @CHAIN news for more latest news! #chime
American digital bank Chime will go public on NASDAQ on June 12, with a valuation exceeding $11 billion. Its early investors have received substantial returns, such as Crosslink Capital, which invested $6.4 million in the Series A funding round in 2014, and this investment is now worth about $430 million. Even after selling over $80 million worth of shares in the secondary market, the return remains over 67 times. PivotNorth Capital, founded by a former partner at Sequoia Capital, sold all its shares in 2019 for nearly $6 billion, achieving about 100 times return.
Chime was founded in 2013 and is headquartered in San Francisco, primarily serving Americans with monthly incomes below $100,000. It partners with Bancorp Bank and Stride Bank to offer no-fee accounts and early access to paychecks, and by March 2025, it had 8.6 million active members, a 23% increase in user base compared to 2024, with 67% of members using it as their primary account. Furthermore, starting in 2023, Chime launched a MyPay small loan product similar to 'Huabei', contributing 12% of its revenue in the first quarter.
However, well-known investment institutions that entered later, such as Sequoia Capital Global Equities Fund, SoftBank, and General Atlantic, are now facing paper losses or significant reductions in earnings due to Chime's inflated valuation during the pandemic.
Follow me @CHAIN news for more latest news! #chime
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