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

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.
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.
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
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.
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.
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
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
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
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
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!
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
Business
GLOBAL SUSTAINABILITY SUMMIT RETURNS FOR ITS 5TH EDITION AT THE BRITISH PARLIAMENT – HOUSE OF LORDS, PALACE OF WESTMINSTER

FOR IMMEDIATE RELEASE
Theme: “People, Planet, and Profit in the Age of AI and Innovation”
London, United Kingdom — The Global Sustainability Summit (GSS) is officially back for its landmark 5th Edition, continuing its legacy as one of the leading international platforms driving sustainable development, climate action, ethical investment, innovation, and global collaboration.

Convened annually at the prestigious British Parliament, House of Lords, Palace of Westminster, by Ambassador Canon Chinenem Otto, the Summit has, over the last four years, successfully fostered international dialogue and partnerships that have contributed to the advancement of global sustainability goals, the establishment of sustainability-focused ministries, departments and policy structures across national and subnational governments, and the attraction of major investors into sustainable development projects, corporations and emerging economies.
This year’s summit, themed “People, Planet, and Profit in the Age of AI and Innovation,” will explore how emerging technologies, responsible leadership, sustainable finance, innovation, and global partnerships can shape a more inclusive, resilient and environmentally conscious future.

The 5th Edition promises to be the most impactful yet, bringing together world leaders, policymakers, diplomats, investors, academics, innovators, climate experts and youth leaders from across the globe to discuss actionable solutions toward achieving a sustainable and equitable future.
Among the distinguished speakers, delegates and honorees already lined up for the Summit are:
• His Excellency Mallam AbdulRahman AbdulRazaq — Executive Governor of Kwara State, Nigeria and Chairman of the Nigeria Governors’ Forum
• His Excellency Senator Prince Bassey Otu — Executive Governor of Cross River State, Nigeria
• Ambassador Patricia Espinosa Cantellano — Former Executive Secretary of UN Climate Change (UNFCCC) and Former Foreign Minister of Mexico

• Lord Marvin Rees, Baron Rees of Easton OBE — Member of the House of Lords, United Kingdom
• Hon. Neema K. Lugangira — Secretary-General of Women Political Leaders (WPL), Brussels and Former Member of Parliament
• Her Excellency Dr. Netumbo Nandi-Ndaitwah — President of the Republic of Namibia
• His Excellency Nangolo Mbumba — Former President of Namibia
• Former President of Tanzania
• Her Excellency Ambassador Professor Olufolake AbdulRazaq — First Lady of Kwara State, Nigeria and Chairperson of Nigeria Governors’ Spouses Forum
• Your Excellency Dr. Dikko Umar Radda, PhD, CON — Executive Governor of Katsina State and Chairman of the Northwest Governors Forum, Nigeria
• Hon. Sam Shafiishuna Nujoma — Governor of Khomas Region, Namibia

• H.E. Mr. Veiccoh Nghiwete — High Commissioner of the Republic of Namibia to the United Kingdom
• Her Excellency Ms. Macenje “Che Che” Mazoka — High Commissioner of Zambia to the United Kingdom
• Ms. Danielle Newman — Partner Lead, ICT, World Economic Forum
• Leanne Elliott Young — Co-founder, Institute of Digital Fashion & CommuneEast
• Ms. Chloe Russell — Producer & Presenter, Art, Science and Nature
• Professor Marie-Claire Cordonier Segger — University of Cambridge & University of Waterloo
• Dr. Alexandra R. Harrington — IUCN World Commission on Environmental Law (WCEL)
• Professor Payam Akhavan — Massey College, University of Toronto
• Mr. Mallai C. E. Sathya — President, Dravida Vetri Kazhagam and International Movement for Tamil Culture Asia

The Summit will feature high-level panel discussions, strategic investment conversations, sustainability awards, policy dialogues, innovation showcases, youth engagement sessions and international networking opportunities focused on climate resilience, ethical financing, food-water-energy sustainability, circular economy, artificial intelligence, diplomacy and sustainable development.
Speaking ahead of the Summit, Convener Ambassador Canon Chinenem Otto noted:
“As the world rapidly evolves through artificial intelligence and technological innovation, we must ensure that sustainability remains people-centered, environmentally responsible and economically inclusive. The Global Sustainability Summit continues to serve as a bridge connecting governments, institutions, innovators and investors to accelerate practical sustainability solutions globally. Our fifth edition is not only a celebration of progress made over the years, but also a renewed call for global collaboration and actionable impact toward achieving the Sustainable Development Goals and Net Zero ambitions.”
The Global Sustainability Summit continues to position itself as a catalyst for transformative partnerships and sustainable global progress, reinforcing the urgent need for collective action toward a more resilient and sustainable future.
More announcements regarding additional speakers, partners and summit activities will be unveiled in the coming weeks.
News
US May Completely Cut Income Tax Due to Tariff Revenue

President Donald Trump says the United States might one day get rid of federal income tax because of money the government collects from tariffs on imported goods. Tariffs are extra taxes the U.S. puts on products that come from other countries.

What Trump Is Saying
Trump has said that tariff money could become so large that it might allow the government to cut income taxes “almost completely.” He has also talked about possibly phasing out income tax over the next few years if tariff money keeps going up.
How Taxes Work Now
Right now, the federal government gets much more money from income taxes than from tariffs. Income taxes bring in trillions of dollars each year, while tariffs bring in only a small part of that total. Because of this gap, experts say tariffs would need to grow by many times to replace income tax money.
Questions From Experts
Many economists and tax experts doubt that tariffs alone could pay for the whole federal budget. They warn that very high tariffs could make many imported goods more expensive for shoppers in the United States. This could hit lower- and middle‑income families hardest, because they spend a big share of their money on everyday items.
What Congress Must Do
The president can change some tariffs, but only Congress can change or end the federal income tax. That means any real plan to remove income tax would need new laws passed by both the House of Representatives and the Senate. So far, there is no detailed law or full budget plan on this idea.

What It Means Right Now
For now, Trump’s comments are a proposal, not a change in the law. People and businesses still have to pay federal income tax under the current rules. The debate over using tariffs instead of income taxes is likely to continue among lawmakers, experts, and voters.
News
Epstein Files to Be Declassified After Trump Order

Former President Donald Trump has signed an executive order directing federal agencies to declassify all government files related to Jeffrey Epstein, the disgraced financier whose death in 2019 continues to fuel controversy and speculation.
The order, signed Wednesday at Trump’s Mar-a-Lago estate, instructs the FBI, Department of Justice, and intelligence agencies to release documents detailing Epstein’s network, finances, and alleged connections to high-profile figures. Trump described the move as “a step toward transparency and public trust,” promising that no names would be shielded from scrutiny.
“This information belongs to the American people,” Trump said in a televised statement. “For too long, powerful interests have tried to bury the truth. That ends now.”
U.S. intelligence officials confirmed that preparations for the release are already underway. According to sources familiar with the process, the first batch of documents is expected to be made public within the next 30 days, with additional releases scheduled over several months.
Reactions poured in across the political spectrum. Supporters praised the decision as a bold act of accountability, while critics alleged it was politically motivated, timed to draw attention during a volatile election season. Civil rights advocates, meanwhile, emphasized caution, warning that some records could expose private victims or ongoing legal matters.
The Epstein case, which implicated figures in politics, business, and entertainment, remains one of the most talked-about scandals of the past decade. Epstein’s connections to influential individuals—including politicians, royals, and executives—have long sparked speculation about the extent of his operations and who may have been involved.

Former federal prosecutor Lauren Fields said the release could mark a turning point in public discourse surrounding government transparency. “Regardless of political stance, this declassification has the potential to reshape how Americans view power and accountability,” Fields noted.
Officials say redactions may still occur to protect sensitive intelligence or personal information, but the intent is a near-complete disclosure. For years, critics of the government’s handling of Epstein’s case have accused agencies of concealing evidence or shielding elites from exposure. Trump’s order promises to change that narrative.
As anticipation builds, journalists, legal analysts, and online commentators are preparing for what could be one of the most consequential information releases in recent history.
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