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Better.com’s public market debut was Miserable.com on August 27, 2023 at 2:16 pm

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Welcome back to The Interchange, where we take a look at the hottest fintech news of the previous week. Better.com finally went public last week, and the stock’s performance was worse than expected. Affirm, on the other hand, saw its shares get a boost on the back of a better-than-expected earnings report. There was also a mega-raise, and an acquisition too. On another note, if you want to receive The Interchange directly in your inbox every Sunday, head here to sign up!

Better.com finally went public

The biggest fintech news of the week centered around Better.com’s no good, very bad public market debut. Or as my friend and colleague Alex Wilhelm described it, Better.com had a Miserable.com week.

To sum it up, digital mortgage lender Better.com made its public debut on August 24. To no one’s surprise, the stock wasn’t exactly a hit with public investors. In fact, it was a resounding bomb. As of Friday, August 25, the stock had closed a mere $1.19. Shares of SPAC partner, Aurora, were trading at $17.45 on Wednesday, before Better.com officially went public. This is a company that two years ago had planned to go public at a $7.7 billion valuation.

Now, we knew Better.com’s stock wouldn’t exactly perform well. But I’m not sure anyone expected it to be hovering at a share price that gave Better.com a market cap of just $19.14 million.

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I had the opportunity to interview Vishal Garg, Better.com CEO and co-founder, a couple weeks ago in anticipation of the company’s going public via a SPAC merger with Aurora Acquisition Corp. I will tell you that after nearly two years of writing about the company’s multiple (and mostly botched) layoffs, all the various ways that Garg has managed to piss off former employees and execs alike, and the company’s swing from a big profit in 2020 to heavy losses in 2022 and beyond, I expected the interview to be a little awkward. The last time I had interviewed Garg was in 2020, when everyone and their brother was refinancing their homes and Better.com was raking in the cash. In the end, Garg was on his best behavior — exhibiting the charm and charisma that no doubt managed to help win over investors such as SoftBank, Activant Capital, Ping An Global Voyager Fund, Ally Financial and Citi, and others who collectively invested hundreds of millions of dollars in the company.

Some highlights of the interview included the following:

Garg admitted he “had jitters” about the IPO.
The executive also said he “had a lot of leadership training” and realized that he needed to treat his employees with the same kindness he was treating customers.
Going public despite all of the company’s challenges was all about getting $550 million from SoftBank.
Garg continued to tout the company’s technology (which even company naysayers will acknowledge is pretty darn good) and the hope that a housing market turnaround and mortgage rate decrease could work in its favor in 2024 should they both materialize.

On that note, on the same day that Better.com went public, the average 30-year mortgage rate jumped to 7.23%, marking a 22-year high, according to Yahoo Finance. With rates this high, Better.com’s attempt to turn its business around will be even more challenging.

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Phil Haslett, co-founder and chief strategy officer of EquityZen, had this to say about the company’s choosing to move forward with its delayed SPAC despite all the negative headlines over the past 20 months. Via email, he wrote: “Senior leadership at Better.com (and its investors) are not surprised the stock is ‘down’ 90%. The de-SPAC was a way to raise $565M. Nobody else was going to give them $500 million. Vishal Garg saw that there was one last wedding dress for sale, and he took it. He knew it wouldn’t fit right, but he didn’t care. He got it done.”

To hear the Equity podcast team riff more about the company and its bomb of a public debut, check out the below link. — Mary Ann

Image Credits: Better.com

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Affirm’s very good week

Better.com may have had a rough week, but at least one other publicly traded fintech company’s stock fared far better.

Shares of Affirm’s stock were trading up nearly 30% to just under $18 on Friday afternoon after the company released its fourth-quarter and fiscal year 2023 earnings. The company said it was exiting the year with achieving profitability on an adjusted operating income (AOI) basis and that its revenue was up 22% year-over-year to $446 million. And, as reported by CNBC, Affirm “also gave strong guidance for the fiscal first quarter, projecting $430 million to $455 million in revenue, versus analyst expectations of $430 million.”

Third Bridge analyst Kevin Kennedy had a few thoughts on the results after interviewing a number of execs in the fintech space, telling TechCrunch that “even with generally positive results, it is hard to ignore Affirm’s continued operating losses and loss margins expanded more than 11 percentage points over the past year, resulting in a $2.6 billion accumulated deficit.” On the plus side, Kennedy also noted that the Debit+ card product was “a step in the right direction, and will likely play a key role in the path to profitability by driving better monetization of existing users without the drag of marginal customer acquisition costs.” He said he was also particularly interested to see Affirm’s increased adoption in travel, equipment and auto industries. Lastly, he said: “Our experts believe Affirm’s future as a standalone business will be contingent on the company’s ability to develop and effectively cross-sell a wider spectrum of financial services products, as the BNPL offerings of major diversified tech players like PayPal, Apple and Cash App (Block) are becoming increasingly competitive.”

For context, Affirm’s stock is still trading lower than its 52-week-high of $27.26, but it’s more than double its 52-week-low of $8.62.

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Check out our previous interview with the company’s CTO here. — Mary Ann

Weekly news

Sarah Perez reports on a new way for Starbucks lovers to pay for their favorite beverages, sans phone. The contactless checkout method comes as the coffee giant works to move people through the drive-through quicker. Find out how it works.

From Manish Singh are two stories on India retail giant Reliance Retail. First up, the company’s spinoff unit, Jio Financial Services, made its public debut. Second, Reliance is testing a sound box payment system that instantly validates and announces when a payment was successful. Learn more.

And this week on Equity, Mary Ann dug into Latin America’s fintech and AI scene with Mercedes Bent, partner on the early-stage team at Lightspeed Ventures and co-lead of Lightspeed’s LatAm region and angel fund. They spoke on a number of topics, including how and why Mercedes started investing in Latin America, and why she thinks the region is more resilient than others; why we’re early in the hype cycle when it comes to the intersection of AI and fintech; and why generative AI and fintech aren’t always the best combination.

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Other items we are reading:

Klarna boasts expansion and growth across Europe as smaller firms ‘dial back’ commitments. Speaking of Klarna, CEO Sebastian Siemiatkowski posted an engaging thread on X, detailing the challenges of “trying to hire and manage somebody that does something that you have no clue how to do.”

How fintech company Marqeta is using AI to help consumers

Hadley launches mobile app to increase access to savings plans

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Look who’s partnering now:

OZ Câmbio partners with Nium to improve Brazilian SME market and encourage international expansion

Treasury Prime partners with Liberty Bank

Cross River Bank and Current launch credit-building product

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Engagement banking fintech Backbase partners with SavvyMoney

Fundings and M&A

As seen on TechCrunch

Fintech startup Ramp raises $300M at a 28% lower valuation of $5.8B 

Moniepoint cleared to acquire Kenyan fintech Kopo Kopo

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This venture-backed startup has quietly bought more than 80 mom-and-pop shops

And elsewhere

Yahoo acquires social investing platform Commonstock (Disclosure: Yahoo is TechCrunch’s parent company)

LemFi raises $33M Series A to ease remittance for immigrants

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Koverly raises $7.6M for B2B BNPL

Why Ventura Capital and Peter Thiel are backing this Silicon Valley RIA

Discover the Fintech Stage at Disrupt 2023

Check out the Fintech Stage at TechCrunch Disrupt 2023, taking place in San Francisco on September 19–21, where we cover web3, banking, and more. Last-minute passes are still available. Save 15% with code INTERCHANGE. Register now!

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Image Credits: Bryce Durbin

​ Welcome back to The Interchange, where we take a look at the hottest fintech news of the previous week. Better.com finally went public last week, and the stock’s performance was worse than expected. Affirm, on the other hand, saw its shares get a boost on the back of a better-than-expected earnings report. There was also a 

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The Cities Bracing for Trump’s Immigration Crackdown

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In the wake of Donald Trump’s recent election victory and his promise of “the largest deportation operation in American history,” several major U.S. cities are bracing for potentially seismic shifts in their economic and social landscapes. As the nation grapples with the implications of this proposed policy, urban centers that have long been havens for immigrant communities find themselves at the epicenter of a looming storm.

Los Angeles, often dubbed the “City of Angels,” stands to lose more than its celestial nickname suggests. As a primary gateway for immigrants, the city’s vibrant tapestry of cultures and its economic engine could face significant disruption. From the bustling streets of Koreatown to the sun-drenched orchards of the Central Valley, the absence of undocumented workers could leave gaping holes in the city’s workforce and cultural identity.

Across the country, New York City, with its iconic skyline and melting pot reputation, faces its own reckoning. The Big Apple’s 5.9 million immigrants, many of whom are undocumented, form the backbone of industries ranging from construction to healthcare. The potential exodus could transform neighborhoods like Jackson Heights and Flushing, altering the very essence of what makes New York a global city.In the Sunshine State, Miami’s tropical allure belies the turbulent times ahead. Home to 2.5 million immigrants, the city’s economy relies heavily on sectors like tourism and hospitality – industries where undocumented workers often fill crucial roles. The potential deportation of these workers could send shockwaves through Miami’s economic ecosystem, from South Beach’s glitzy hotels to the agricultural heartlands of South Florida.

Chicago, the “City of Big Shoulders,” may find those shoulders significantly weakened. With 1.7 million immigrants in its metropolitan area, the Windy City’s diverse neighborhoods and industries face an uncertain future. From the meatpacking plants to the tech startups, Chicago’s economic resilience could be tested like never before.

In the Lone Star State, Houston and Dallas stand as twin testaments to the complexities of immigration policy. These Texas titans, each home to large immigrant populations, could see their booming economies stumble. The construction sites that dot their ever-expanding skylines and the service industries that keep these cities humming could face unprecedented labor shortages.

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Out West, the San Francisco Bay Area’s reputation as a bastion of innovation and progress could be challenged. The region’s tech industry, often reliant on immigrant talent, might find itself grappling with a new reality. From Silicon Valley’s coding campuses to the agricultural expanses of the Central Valley, California’s economic powerhouse could face a reckoning. Phoenix, rising from the Sonoran Desert, could see its growth trajectory altered. As Arizona’s urban center, it stands at the forefront of the immigration debate, potentially facing not just economic impacts but social and political upheaval as well.

These cities, along with others like San Diego and Las Vegas, are not just facing potential economic disruptions. They are staring down the barrel of profound social change. Family separations, community fragmentation, and the erosion of cultural enclaves built over generations are all possible consequences of mass deportations. Moreover, the fiscal implications are staggering. Undocumented immigrants contribute billions in taxes annually, often without receiving the full benefits of their contributions. Their sudden absence could leave gaping holes in city budgets, potentially affecting public services and infrastructure projects.

As these urban centers brace for impact, the debate rages on. Supporters of stricter immigration policies argue for the need to enforce laws and protect American jobs. Critics warn of economic devastation and the unraveling of America’s urban fabric. What’s clear is that America’s cities stand at a crossroads. The coming months and years will likely reshape urban landscapes in ways both visible and invisible. From the foods we eat to the services we rely on, from the neighborhoods we call home to the very character of our cities, the impacts of this proposed immigration crackdown could be far-reaching and long-lasting. As the nation watches and waits, these cities – vibrant, diverse, and economically vital – find themselves on the front lines of a policy that could redefine what it means to be an American city in the 21st century.

Bolanle Media is excited to announce our partnership with The Newbie Film Academy to offer comprehensive courses designed specifically for aspiring filmmakers. Whether you’re just starting out or looking to enhance your skills, our resources will provide you with the tools and knowledge needed to succeed in the competitive world of screenwriting. Join us today to unlock your creative potential and take your first steps toward crafting compelling stories that resonate with audiences. Let’s turn your ideas into impactful scripts together!

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How Trump’s Deportation Plans Could Reshape Major Cities

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In the wake of Donald Trump’s recent election victory, his ambitious plans for mass deportations have thrust America’s urban centers into the spotlight. As the nation grapples with the potential implications of what Trump calls “the largest deportation operation in American history,” cities across the country are bracing for significant changes that could reshape their economic, social, and cultural landscapes.

The stakes are particularly high for metropolitan areas like New York, Los Angeles, Houston, Dallas, and Miami, which host the largest populations of unauthorized immigrants. These cities, along with other major urban hubs such as Chicago, Washington D.C., and San Francisco, stand at the forefront of a looming transformation that could reverberate throughout the nation.

Economic Tremors

Economists warn that the proposed deportations could send shockwaves through urban economies. Mark Zandi, chief economist at Moody’s, cautions that businesses would face “significant challenges” if a substantial number of immigrants were removed. Industries such as construction, hospitality, and healthcare—pillars of urban economies—could face severe labor shortages.

Joe Brusuelas, chief economist at RSM, emphasizes the potential ripple effects: “The native-born workforce cannot meet current labor demands.” This labor gap could lead to increased wages, potentially rekindling inflation—a concern that looms large over city planners and policymakers alike.

Community Fabric Under Strain

Beyond economic considerations, the social fabric of cities hangs in the balance. Elena, a Nicaraguan immigrant in Houston, voices a fear echoed in immigrant communities across the nation: “I’m scared… This is my home.” The threat of family separations, particularly in mixed-status households, casts a long shadow over urban neighborhoods.

Immigrant advocacy groups like FIEL are mobilizing, advising clients to prepare for “anything that can happen.” This atmosphere of uncertainty could lead to decreased community engagement and cooperation with local authorities, potentially impacting public safety and community cohesion.

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Cities at a Crossroads

As the debate intensifies, cities find themselves at a crossroads. Some, like New York and Los Angeles, have historically positioned themselves as “sanctuary cities,” often at odds with federal immigration enforcement. The impending clash between federal policy and local governance promises to be a defining feature of this new political landscape.

Meanwhile, the logistical challenges of implementing such a massive deportation operation remain daunting. Questions abound regarding detention facilities, transportation networks, and the sheer manpower required to carry out Trump’s vision.

Looking Ahead

As America’s urban centers brace for potential change, the full impact of Trump’s deportation plans remains to be seen. Legal challenges are all but certain, and the resilience of America’s cities will be put to the test.

What is clear is that the coming months and years will be pivotal for urban America. As Jason Miller, a senior Trump adviser, puts it, the plan is to “immediately reinstate” immigration policies from Trump’s first term. For America’s cities, this could mean a period of unprecedented change, challenge, and, potentially, transformation.

As the nation watches and waits, the story of America’s cities in the face of this ambitious deportation plan is just beginning to unfold. The outcome will undoubtedly shape the future of urban life in America for years to come.

Bolanle Media is excited to announce our partnership with The Newbie Film Academy to offer comprehensive courses designed specifically for aspiring screenwriters. Whether you’re just starting out or looking to enhance your skills, our resources will provide you with the tools and knowledge needed to succeed in the competitive world of screenwriting. Join us today to unlock your creative potential and take your first steps toward crafting compelling stories that resonate with audiences. Let’s turn your ideas into impactful scripts together!

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Donald Trump Wins 2024 USA Election

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Based on the election results, Donald Trump has indeed won the 2024 U.S. presidential election, defeating Vice President Kamala Harris. Here’s an analysis of the key statistics and implications:

Electoral College Victory

Donald Trump has secured the presidency by winning crucial battleground states and flipping some key states that were previously held by Democrats. The final Electoral College tally is still being determined, but Trump has surpassed the 270 electoral votes needed to win.

Battleground State Performance

Trump’s victory was largely secured by winning several critical swing states:

  • Wisconsin: Trump’s win here was pivotal in securing his path to victory.
  • Pennsylvania: This state flipped back to Republican control.
  • Georgia: Another key state that Trump managed to win back.
  • Michigan: Trump successfully flipped this traditionally Democratic stronghold.

While the final popular vote tally is still being calculated, exit polls provide insight into voter priorities:

Congressional Control

The election results extend beyond the presidency:

Media Implications

The outcome of this election could be seen as a challenge to mainstream media narratives for several reasons:

  1. Polling Discrepancies: Many pre-election polls suggested a tight race or even a slight Harris advantage in key states. Trump’s victory, particularly in battleground states, may indicate that polls underestimated his support.
  2. Narrative Shifts: Throughout the campaign, much of the mainstream media focused on Trump’s legal challenges and controversies. His victory suggests that these issues may not have resonated with voters as much as economic and policy concerns.
  3. Voter Priorities: The emphasis on issues like the economy and immigration in voter decision-making may indicate a disconnect between media focus and voter concerns.
  4. Electoral Predictions: Many mainstream outlets were cautious about predicting a Trump victory, even as results began to favor him. This hesitancy could be seen as a reflection of broader media skepticism about Trump’s chances.
  5. Underestimation of Trump’s Base: The results suggest that Trump’s core support remained strong and potentially grew, despite negative coverage in much of the mainstream media.

It’s important to note that while the election outcome may challenge some media narratives, it doesn’t necessarily invalidate all mainstream reporting. The complex factors influencing voter behavior and the challenges of accurate political forecasting remain subjects of ongoing analysis and debate.

As the dust settles on this historic election, both the media and political analysts will likely engage in extensive reflection on the factors that led to Trump’s victory and the implications for future political coverage and analysis.

Bolanle Media is excited to announce our partnership with The Newbie Film Academy to offer comprehensive courses designed specifically for aspiring screenwriters. Whether you’re just starting out or looking to enhance your skills, our resources will provide you with the tools and knowledge needed to succeed in the competitive world of screenwriting. Join us today to unlock your creative potential and take your first steps toward crafting compelling stories that resonate with audiences. Let’s turn your ideas into impactful scripts together!

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