Day trading is the ultimate hobby which can actually pay your bills, as opposed to things like “Second Life” which can actually ruin your “real life” that is IRL, lol .. As more participants come to the market, more players will emerge and the unfair practices of Robinhood will be kept in check. 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Upstart is a personal lender, that's pretty much what business they're involved in right now. The Company primarily caters to early-stage professionals and offers variable, fixed rate … Frankel: The technology used is the proprietary element of this by far, is that algorithm, the whole non-traditional risk model that they're doing, and the fact that they are willing to really bend on FICO scoring. Frankel: My savings account is a stored value because its value doesn't fluctuate. Then it will be interesting to see how the Robinhood traders ebb and flow the market cap of their own trading platform, in real time. Right around $32,800, right before we started recording this. Moser: Well, I mean, I've got thoughts too, but I'm going to go ahead and let you start. Moser: [laughs] Yeah, it seems that way every week for you. Frankel: That's a big motivation. The idea is that it simplies the traditional process of IPOs, the IPO roadshow, the need to hire new underwriters, things like that. Matthew Frankel: Pretty good, as you can see by the background, it's another day in paradise. It's trading at a $4 billion market cap. Much of that growth, rising from 10 million at the start of 2020, has been fueled by the coronavirus pandemic as millennials have increasingly seen opportunity in the beaten-down stock market. But as you mentioned, that can be a real source of capital, which is their business. Frankel: It's a fee income business model. That's why we're seeing this giant wave of SPAC IPOs. As always, people on the program may have interest in the stocks they talk about and The Motley Fool may have formal recommendations for or against, so don't buy your or sell stocks based solely on what you hear. Frankel: Well, like you said, they are pretty recent IPO, and given the times, like every other IPO, they've shot through the roof since they [laughs] went public. The fourth one, IPOD, is still looking for its acquisition target, and that's in the market right now. They are connectors, they connect banks with customers that they otherwise wouldn't connect with. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. But I just don't see the mainstream case for it at this point. There's no doubt about it. I understand how it works. They're valuing SoFi at about $8.65 billion, including the $2.4 billion and new money that's coming in. We're going to get the fourth quarter earnings. This trend looks likely to continue to grow. It's an interesting business model. Click HERE to find out ⭐ Pre-IPO Shares of Impossible Foods Available at Manhattan Street Capital. It goes public, raises usually a few $100 million, then it seeks an acquisition target. But I don't see it translating to widespread mainstream adoption anytime in the next decade or more. It hasn't proven as a useful currency over the U.S. dollar, especially with all these fintech innovations that we're talking about. They were founded by former Google [Alphabet] people, if that helps. EquityZen is a marketplace for shares of proven pre IPO tech companies. SoFi, including $2.4 billion of new capital, is about $8.65 billion. But what they have done is created a branding for Millenials that works, powered by PR and stats: LevelX also offers Pre IPO investing for accredited investors in companies like SoFi. It's trading at a huge premium because he's been so successful with the other ones. But I still don't see the benefit to converting my U.S. dollars to bitcoin to be able to use them on PayPal when I can just take my U.S. dollars and use them on PayPal. SoFi will go public via a SPAC … SoFi is a finance company that offers a range of lending and wealth management services. So far, like you said, 75% reduction in loss ratios, it looks like it's working so far so that [laughs] technology is really that good. Some stimulus ran out in the fourth quarter. My time is better spent doing something else. Right now, I guess, their biggest competitive advantages are proprietary technology. But that is a big advantage, especially when one of them still has a lot of skin in the game like that. I'm not saying it's not special. Frankel: So far, to my knowledge, Upstart has no desire to become a bank. Technology then wasn't where it is today, so I can imagine that it really resonates with that younger consumer. Matt, as I said in the intro there, we're going to talk a little bit about a brand new IPO, and then a company that's talking about getting ready to IPO. Remittances aren't anything new. To be fair, it's not the only tech company with a high-value. Why don't you elaborate a little bit for us? Like you said, they started as a community-based student lender, refinancing loans, issuing private student loans, they branched out into mortgages. They visit brick-and-mortar lenders less often—if they visit them at all. The Innovation Economy. Here’s more from their article: According to a Kasasa study, 82% of millennials have no issue with switching banks  , and one-third of them are open to switching banks within 90 days. But it just showed me really even back then, the power of using that data in order to assess risk better. I'd call it the mid-level credit, like the people with fair credit that all the other companies are overlooking, and they tried to do that area of the market better than everyone else. Not earning, it's 20 times sales. It has a limited amount, and you can't make anymore. SoFi IPO SoFi is a finance company offering a range of lending and wealth management services. It started with LendingClub about seven or eight years ago, and now there is, if you go to the essence page, we have reviews on a dozen of them. They're up 84% since day one, which is four weeks ago. Maybe it is. Pre-IPO Syndication Planning Large IPO’s are underwritten by a syndicate of investment banks. The company primarily caters to early-stage professionals and offers variable and fixed rate parent, personal, and MBA loans, mortgage refinancing, and more. They are growing pretty impressively. I'm going to stick with that as my one to watch because they report their earnings on Friday, which is the first day of bank earnings. Most importantly, SoFi is not actually a bank or financial institution. Man, all due respect. It was founded in 2016 and headquartered in San Francisco, California. To put it another way, if an existing shareholder wants to sell some of their shares, they … SoFi is FinTech but it’s not just technology – they offer actionable items so the actual feel is as if you are opening an account with SoFi. I don't know if you've ever been self employed, but if you've got to apply for a mortgage, or a car loan, or something like that, there's a lot of jump or hoops that banks make you jump through. Moser: I was just kidding. That's the brief overview of how SPAC works. Frankel: My pick last week was Wells Fargo. I mean, you could make the argument that PayPal and Square are onboard with bitcoin and PayPal has said that it wants to make bitcoin usable at its merchants. When my wife and I were in the market for a second home, I got a mortgage quote from SoFi, they were the lowest when we saw. Another really interesting part of the business is the Galileo Financial that they acquired in 2020. Now that the bank is allowed to pay dividends and buy back shares, the Federal Reserve said banks can start doing this in the first quarter. Frankel: To be fair, I'm usually more excited about a founder owned business years after its IPO. Everyone at least knows the term bitcoin since about 2014-2015. I'm not saying there is not a use case. Let's pivot over to another business that plays, it seems, in the same sandbox, maybe a little bit of a different focus there on who they are lending to, but we're looking at SoFi, Social Finance, also known as SoFi, looking to go public here possibly soon through the SPAC vehicle. I know that you had a great conversation, not all that long ago with Dan Caplinger and you had gone over some of the basics here in regard to SPACs and how they work. Pre-IPO investing is when you invest in a private company before its initial public offering (IPO). This is his fifth SPAC. It's a volatile day when the U.S. dollar moves by 1% in either direction against say, the euro. #IPO #preipo #cryptocurrency #SpaceX #impossiblefoods #grab #Sofi … There are three arguments that I often hear in favor of bitcoin. [laughs] It helps businesses process checks and things like that. Upstart, it's not taking out a lot of credit risk, in other words. Open a commission free trading account at www.levelx.com – Level the playing field, Accredited investors can open a Pre IPO investment account at https://www.levelx.com/pre-ipo. Let's not be a stranger, I look forward to seeing you next week. The growth of Robinhood has been a testament to this trend: Stock trading app Robinhood has revealed recently surpassed the 13 million active users mark. Frankel: Well, for one, well, bitcoin is still several times more than it was at this time last year, so take it with a grain of salt. 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