Venture Capital: Accel Gets Sweet 4X Returns on $1.2B Galileo Exit

https://dailyalts.com/wp-content/uploads/2020/04/exit-387227_640.jpg

Pandemic or not, the FinTech M&A juggernaut rolls on as SoFi snaps up Galileo Financial Technologies.

It’s the third big one in the fintech space within a space of barely four months. In January, Visa (NYSE: V) acquired Plaid for $5.3 billion, followed by Intuit (NASDAQ: INTU) paying $7.1 billion for Credit Karma in February. In the current deal, personal finance company SoFi is buying up Galileo, a Utah-based financial services API and payments platform, for $1.2 billion in cash and stock. Accel, an investor in Galileo, has reportedly romped home with 4X returns. (Crunchbase)

Accel’s bumper IRR on Galileo

Accel has a history of investing in mostly bootstrapped companies.

Galileo is true to type. Clay Wilkes founded the startup in 2000 and bootstrapped it to profitability since. In April 2014 it raised $8 million led by Mercato Partners.

Last October, Accel led Galileo’s $77 million Series A at an undisclosed valuation.

In effect, therefore, Accel has held its investment in the fintech for just half a year. According to TechCrunch, a source knowledgeable on the transaction claimed Accel generated a 4X return on investment.

Sofi and Galileo

Galileo’s API and payment platform enables financial functionalities including account set-up, funding, direct deposit, ACH transfer, IVR, early paycheck direct deposit, bill pay, transaction notifications, check balance, and point of sale authorization as well as dozens of other capabilities.

The fintech processed over $53B of annualized payments volume in March 2020, up from $26B in September 2019.

SoFi is already a customer of Galileo. So are several global digital banks. These include Chime, Robinhood, TransferWise, Varo, Revolut, and Monzo (also Accel-backed).

“SoFi has established itself as a leader in the fintech sector, providing our more than one million members a full array of financial products to help them get their money right,” said Anthony Noto, CEO of SoFi on the Galileo buyout. “The response by our members to our innovation across borrowing, saving, spending, and investing has motivated us to think bigger, bolder and more expansively given the insatiable consumer appetite for financial services innovation.”

Related Story:   FinTech: Visa Snaps Up Fintech Network Plaid for $5.3 Billion

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2020/11/mockup-5288033_640.jpg
Alternative Investments: Accelerate Launches An ETF For Alternative Assets
November 25, 2020     Alternative Investments, News

Accelerate Financial Technologies launched its OneChoice Alternative Model Portfolio in September. Aimed at hard-pressed advisors and portfolio managers, the strategy offered a quick and easy way to put together a…

https://dailyalts.com/wp-content/uploads/2020/11/bitcoin-4852534_640.jpg
Digital Assets: Japanese Financial Group SBI Launches Crypto Lending
November 25, 2020     Digital Assets, News

SBI Group (TYO: 8473) is launching a crypto lending service through SBI VC Trade, its crypto-focused exchange subsidiary. SBI said it will initially allow customers to tender only bitcoin (BTC),…

https://dailyalts.com/wp-content/uploads/2020/11/screenshot-www.hippo_.com-2020.11.25-17_21_34.jpg
FinTech: Hippo Insurance Gets $350M Funding From Mitsui Sumitomo Insurance
November 25, 2020     FinTech, News, Venture Capital

Hippo, the home insurance unicorn, announced Tuesday an investment of $350 million from Mitsui Sumitomo Insurance Company, Limited, a subsidiary of MS&AD Insurance Group Holdings, Inc. In July, Hippo raised…

https://dailyalts.com/wp-content/uploads/2020/11/carrots-4545665_640.jpg
Venture Capital: Astanor Ventures Launches $325M Fund For Impact Investing in Agtech

Based in Luxembourg, Astanor Ventures combines capital, technology, and sector expertise to invest in businesses that build regenerative, scalable, and nourishing food solutions. Using this philosophy, Astanor has invested in…