Are their financial reports available and published in English? Would be interesting to read.
I don't know details of their financial model, but will say:
* there is a long bootstrap process for a bank that involves being selective with what customers they can serve with what products at what margins in what order
* debt is a hard game, though in many niches now is the best of times
* currency is also a hard game
* in general, banks are valued at a small multiple of assets and do not attract VC
* in general, SAAS businesses are valued at a large multiple of revenue and do attract VC
So my assumption would be that they are using equity to build the ability to get into the banking core business as a SAAS, which is both lucrative and exploding as an opportunity (see recent nCino news). If they succeed, that's an extremely durable business, and not a bad place for Clojure to be. There are a number of languages that still only "exist" because they form the basis of a banking core.
Are their financial reports available and published in English? Would be interesting to read.
I don't know details of their financial model, but will say:
* there is a long bootstrap process for a bank that involves being selective with what customers they can serve with what products at what margins in what order
* debt is a hard game, though in many niches now is the best of times
* currency is also a hard game
* in general, banks are valued at a small multiple of assets and do not attract VC
* in general, SAAS businesses are valued at a large multiple of revenue and do attract VC
So my assumption would be that they are using equity to build the ability to get into the banking core business as a SAAS, which is both lucrative and exploding as an opportunity (see recent nCino news). If they succeed, that's an extremely durable business, and not a bad place for Clojure to be. There are a number of languages that still only "exist" because they form the basis of a banking core.
Cheers. Thanks for the engagement.