Can someone explain how these startups that lend out millions get unicorn status....

[S2007S]

There are a handful of these companies popping up and getting valuations in the hundreds of millions and even billions like this one, brex.
Now this is a company who is receiving hundreds of millions of dollars from banks, they then lend money to start ups and very risky businesses. Of course brex isn't a bank so it has to rely on outside sources for its funding. This fintech hype is out of control, the company founded by two 22 year olds in just 2017 is worth $2 billion?? It just shows you how many trillions are sloshing around in this debt filled world.



https://www.cnbc.com/2019/12/11/brex-taps-200-million-line-from-credit-suisse.html

 

[nooby_mcnoob]

This is socialism at work. Central bank (Ray Dalio's politburo) disbursing $$$ to chosen entities who then decide how to invest it.

 

[gaussian]

This is socialism at work. Central bank (Ray Dalio's politburo) disbursing $$$ to chosen entities who then decide how to invest it.

This is too negative. The reason fintech is making tons of money right now is because we have the technology such that Joe Nobody can do almost anything to make it better. Finance is stale and full of old, bad, technology and people locked in their ways. Even having a working homepage is revolutionary for some of these finance companies.

Brex is lending ultra high risk loans. If they do it right they can tranche the debt and sell it piecemeal to everyone. This is just a high tech version of payday loan companies and everyone knows payday loan companies are crushing it year over year.

 

[nooby_mcnoob]

This is too negative. The reason fintech is making tons of money right now is because we have the technology such that Joe Nobody can do almost anything to make it better. Finance is stale and full of old, bad, technology and people locked in their ways. Even having a working homepage is revolutionary for some of these finance companies.

Brex is lending ultra high risk loans. If they do it right they can tranche the debt and sell it piecemeal to everyone. This is just a high tech version of payday loan companies and everyone knows payday loan companies are crushing it year over year.

Sure, there will be pockets that are successful. But the overall picture is still accurate.

 

[murray t turtle]

There are a handful of these companies popping up and getting valuations in the hundreds of millions and even billions like this one, brex.
Now this is a company who is receiving hundreds of millions of dollars from banks, they then lend money to start ups and very risky businesses. Of course brex isn't a bank so it has to rely on outside sources for its funding. This fintech hype is out of control, the company founded by two 22 year olds in just 2017 is worth $2 billion?? It just shows you how many trillions are sloshing around in this debt filled world.



https://www.cnbc.com/2019/12/11/brex-taps-200-million-line-from-credit-suisse.html

%%
Its like 1999 for some of them;
so money throWn @ something maybe not be the best clue..........................................

 

[Amun Ra]

I never heard of Brex before, but after looking into them a bit now, seems to me like they're a bank for businesses, but without any type of regulations. They seem to suck people in with those free wire transfers, credit limits that are 50-100% of project sales, 60 days interest free on your credit card and 1.6% interest on your cash balance.

I get a weird ponzi-ish vibe from this company. I don't think it's a good idea to leave your money with them. A bank run on them would be real.

 

[Sig]

This is socialism at work. Central bank (Ray Dalio's politburo) disbursing $$$ to chosen entities who then decide how to invest it.

I don't know how many times this needs to be explained to you. Socialism is what we call civilization. Socialism is having a city or county police force everyone pays into that socializes the cost of police services instead of every individual having their own security force. Socialism is having a county fire department that everyone pays into that socializes the cost of fire protection. Socialism is having roads that are maintained at a county, state, or federal level instead of each of us running our own roadways. And so on and so on to include everything that we have since we left the whole caveman thing behind. If you want to go back to caveman times, well Somalia is about as close an approximation as we can get if you're serious about it.

So please, just stop with the idiotic calling anything you don't like "socialism" as if its some magic word by which you get to brand anything evil. You seem to really be thinking about communism, but even then you've got it a bit dorked up because communism would never release money to thousands of individual banks over which they don't exert complete control who get to decide how to invest it. Maybe just stick with criticizing the actual specifics you don't like instead of this pathological need to label?

 

[murray t turtle]

This is socialism at work. Central bank (Ray Dalio's politburo) disbursing $$$ to chosen entities who then decide how to invest it.

%%
While Central Bank Powell is appointed by Pres; its a private bank. Federal Reserve is like Federal Express, in , telephone directory , like FEDX. Thanks. One gold + silver dealer said a federal reserve note is like buying a pound of coffee, giving the cashier the coffee + taking home the coffee label LOL,