CB Insights’ research on consumer-oriented fintech startups shows the rapid progress that some companies have made over the course of a few years.
The motivations behind the rapid growth
The success of these companies can be attributed both to the intrinsic nature of cryptocurrencies such as bitcoin, which is itself very volatile in nature, and to the important ROI that bitcoin has enjoyed over the years.
A secondary, but no less important, reason for such rapid growth is that these companies have been pioneers in the industry.
Technological innovation in the financial sector has progressed rapidly over the last 10 years, especially now that cryptocurrencies and blockchain have begun to spread.
Among the fintech companies analysed by CB Insights, two crypto startups emerged: Coinbase and Circle, which are part of companies with over 1 million registered accounts.
Coinbase is the most valuable fintech company
Coinbase currently has over 20 million accounts and is ranked second among the 20 companies analysed. Circle has about 7 million registered accounts and is in seventh place.
Coinbase proves to be the company with the highest estimated value among the 20 startups, equivalent to 8 billion dollars.
CB Insights, in its report, declared:
“Cryptocurrency has been the most viral product that any of these companies have leveraged to launch their entry into the consumer fintech space. Coinbase and Circle, for example, were 2 of the earliest players to capitalize. Other startups that have capitalized on customer demand for access to cryptocurrencies include stock trading apps EToro and Robinhood, and challenger banking app Revolut. All 3 added 2M+ customers following their respective product announcements. Despite a cool down in the cryptocurrency markets in 2018, all have continued to grow their user bases, like EToro — which topped 10M accounts and launched in the US in early 2019″.