0/ Another FinTech SPAC deal this AM with @apexclearing merging with $NSTB valued at $4.7B EV / $5.7B market cap or 16.1x '21EV/S & 44.x '21E EV/EBITDA

They have 201 clients & 13.5M customer accts (3.2M added YTD) 450M trades in '20 (67M in Jan '21 alone) with $92B total assets
1/ Those customer account #s are on par with Robinhood and the largest incumbent brokers e.g., $SCHW (pre AMTD deal) & Fidelity while outpacing E*Trade.

Looking at their highlight clients there's probably some concentration risk in @eToro / @WebullGlobal / @SoFi
2/ Apex has launched a crypto experience with over 1.0M+ accounts added YTD and $330M traded, <45 days into the year.
3/ They did $236M in revenue last year & $86M in EBITDA and project that to grow to $418M / $178M respectively in '23E
4/ We're slowly starting to see some of the B2B API Enabled providers go public with @Galileo_Tweets (via @SoFi) and now Apex.

We should have a @Marqeta IPO some point this year & perhaps @Plaid / @stripe to follow.

Market reception will be interesting to watch vs. B2C co's

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More from @JohnStCapital

23 Feb
0/ $SQ had 36M monthly transacting active customers in Dec + 50% YoY. They are showing P2P network effects at scale with a CAC <$5/sh & +50% P2P tx YoY.

To put that in perspective a retail checking account can cost a legacy bank $350-$1,500; a brokerage platform $750-$1,000. Image
1/ Cash App continues to see users find utility in the broader platform (which $PYPL is looking to emulate).

Customer adoption beyond P2P increased across all
products & new customers adopt products like Cash Card and $BTC within their first month at a higher rate.
2/ Gross profit per monthly transacting active customer reached $41 in the fourth quarter, +70% YoY.

$BTC has been a big growth driver. In '20 more than 3M users bought or sold BTC & in January '21, more than 1M
customers purchased BTC for the first time.
Read 6 tweets
18 Feb
0/ We have the @RobinhoodApp & @vladtenev testimony today. The prepared remarks provide some insights on the business & what happened with $GME etc...

They have 13M customers, 13% trade options, 2% multi leg options and 3% are margin enabled
1/ The median age of an investors is 31; 1/2 are first time investors.

The median / average customer account size is $240 / $5,000.

This supports various theses that RH is the “play account” while users have another longer term oriented brokerage account.
2/ On the $GME saga they provide the timeline of collateral requirements during the week of 1/25.

Their obligation 1/25 as $124M the same day the VIX spiked 62% (3rd largest daily gain since 1990).

On 1/28 NSCC told them they had a deposit deficit of $3B. ($1.3B of VaR based)
Read 13 tweets
16 Feb
0/ In the past 30D we've seen a Mickey Mantle card set an all time sports card record of $5.2M, $CLCT acquired for $850M, the @OnRallyRd team receive a buyout offer for a Pele Rookie Card +134% from IPO (10th exit), a $800K Wayne Gretzky rookie card funded by 1,629 investors
1/ in minutes, a @Collectable Rookie Jordan Card + 500% in its first trading session, $EBAY reporting record high sports card volumes, @mcuban writing about this trend, & @jmj get a $10K offer for a Jordan cigar from his childhood bedroom.
2/ We've also seen the first sign of NFT's breaking into mainstream with @WindhorstESPN highlighting @nba_topshot & a $100K sales of Zion's first block by @JerLevine
Read 9 tweets
15 Feb
0/ Retail trading is exploding & VC $ is following. @public raised $200M at a $1.2B valuation just 2 weeks after @RobinhoodApp raised $3.0B in a convert note at a 30% discount to the IPO, @etoro raised a 9 figure round , & B2B broker Apex is reportedly going public via a SPAC
1/ This isn't limited to the US with @miflink crossing 1.0M brokerage accounts in Mexico.

The largest online brokers have seen the # of daily trades 3x since '19; driven by a small % of the customer base.

"Day traders" represent >50% of trades but <10% of customers.
2/ Per GS the dollar value of retail trading is +85% YoY while the # of trades are +300% YoY; suggesting new traders are trading in smaller size than retail traders who started a few years ago.
Read 5 tweets
12 Feb
0/ @vkhosla launched a $300M SPAC today. From the S1, "700M people live a rich lifestyle that 7B people on this planet want. This desirable lifestyle is rich in energy, housing, healthcare, education, food, entertainment, & a clean environment. We believe
1/ that technology is required to meet this demand since increasing the supply of input components w/ current approaches would destroy the planet. We cannot simply increase the number of power plants, buildings, doctors, etc by an order magnitude without depleting the world.
2/ Reinvention requires non-linear thinking from entrepreneurial aspirations that have been allocated risk capital. As unusual as this seems, few large innovations in the last forty years have, been driven by institutions or traditional players. $AMZN, not $WMT innovated retail.
Read 14 tweets
11 Feb
$PYPL investor day highlighted the focus on becoming a "Super App" mentioning accelerating cust engagement, going deeper into financial services with pot'l expansion to stock trading + high-yield savings.

They expect $50B in revenue / 750M active accounts by '25E a 2x for both
1/ They put together a great slide about the totality of their platform offering for both consumers & merchants.
2/ They highlighted pictures of what the next digital wallet looks like with "Crypto" "Savings" "Stocks" alongside BNPL, discounts / reward points
Read 4 tweets

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