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We raised $292m in our 7th funding round.
The company issued no shares and took $0.
It’s the best I’ve ever felt about fundraising.
The cash we raised in prior rounds helped to get here, but this time @TransferWise got something perhaps even more valuable.
Thread.
The company issued no shares and took $0.
It’s the best I’ve ever felt about fundraising.
The cash we raised in prior rounds helped to get here, but this time @TransferWise got something perhaps even more valuable.
Thread.
1/ Our mission is to help people and businesses use their money across borders - make it instant, convenient and eventually cost nothing.
It's really hard.
It's really hard.
2/ McKinsey estimates banks take $200bn of fees for cross-border. With 8 years of hard work, we’ve put $1bn of those back in users’ pockets, $199bn still to go.
We’ve done a mere 0.5% of the journey.
We’ve done a mere 0.5% of the journey.
3/ It’s better with speed. Banks’ standard is still 3-5 business days for international, yet we now deliver 19% of our transfers to the recipient’s foreign bank account in under 20 sec.
But in the grand scheme, it's 19% of the mere 0.5% that go through TransferWise.
But in the grand scheme, it's 19% of the mere 0.5% that go through TransferWise.
4/ Dismantling the old $200bn industry for the benefit of consumers and businesses - is going to be non-trivial.
Going public too soon would be a distraction that may slow us down. Ack, $GOOG $AMZN are incredible counterexamples.
How to stay private longer?
Going public too soon would be a distraction that may slow us down. Ack, $GOOG $AMZN are incredible counterexamples.
How to stay private longer?
5/ Be profitable.
If you need capital markets to fund your growth, you’ll have to go public. It makes capital cheaper.
We love having our customers fund our mission. It’s their mission too.
If you need capital markets to fund your growth, you’ll have to go public. It makes capital cheaper.
We love having our customers fund our mission. It’s their mission too.
6/ Be transparent.
Investors love public companies because there’s info about them. Be public about your progress and open about your numbers. Do it regularly. Perhaps a quarterly mission update ...
Investors love public companies because there’s info about them. Be public about your progress and open about your numbers. Do it regularly. Perhaps a quarterly mission update ...
7/ Help shareholders buy and sell.
After a while you’ll have a mix of shareholders with different time horizons, histories, expectations. They don’t need to buy and sell every day 9 to 5, but they will appreciate the opportunity once a year.
Every employee too.
After a while you’ll have a mix of shareholders with different time horizons, histories, expectations. They don’t need to buy and sell every day 9 to 5, but they will appreciate the opportunity once a year.
Every employee too.
8/ Get investors, who self-select to the mission.
Start your fundraising pitch with the hardest. For example, “we’ll keep dropping our fees as fast as we sustainably can”. Some will balk, other admirers of Amazon, Vanguard, Costco - you will love having them on board.
Start your fundraising pitch with the hardest. For example, “we’ll keep dropping our fees as fast as we sustainably can”. Some will balk, other admirers of Amazon, Vanguard, Costco - you will love having them on board.
9/ Our latest fundraise was another piece of the puzzle, which gives us the freedom to choose when to IPO.
Such that it has the most positive impact for our users and our mission.
Fun fact: it will also translate to biggest outcomes for long-term shareholders.
Such that it has the most positive impact for our users and our mission.
Fun fact: it will also translate to biggest outcomes for long-term shareholders.
10/ Glad you're joining us for the next miles of the marathon - @LeadEdgeCapital @LonePineCapital @nimay @a16z @BaillieGifford
forbes.com/sites/alexkonr…
forbes.com/sites/alexkonr…
