Executive Summary: Affirm is a FinTech company that issues point-of-sale loans to consumers. It works together with merchants, such as Walmart or Shopify, to over loans ranging from 3 to 36 months. Customers directly transact with Affirm via the company’s website or one of its mobile apps. Affirm makes money through the interest that customers pay on the loan. The company’s average APR is 18 percent. Merchants furthermore pay Affirm a percentage fee of the…

You may not realize it, but the financial industry is currently undergoing one of its biggest shifts in recent memory. Just a little over a decade ago, over 50 percent of our purchases were still conducted using cash. Today, that number is below 20 percent. This is, in large part, driven by the advancements of the FinTech industry. Trust in traditional financial institutions was at an all-time low after the financial crisis of 2008. This…

Executive Summary: Honey is a browser extension that scrapes the web to automatically find the best deals for its users. The company works with over 30,000 retailers across industries such as fashion, electronics, travel, and many more. Honey makes money from affiliate commissions that it earns for every coupon that is redeemed via its extension. Founded in 2012 and headquartered in Los Angeles, Honey has grown to become a major player in the browser extension…

Executive Summary: Discord is a communication platform that allows gamers (and everybody else) to organize themselves in so-called servers. The platform is available on Android, iPhone, Mac, Xbox, PlayStation, and PC devices. Discord makes money from its Nitro subscription packages. Other sources of income include server boosting as well as fees it receives from games sold on its servers. The core app remains free-of-charge, meaning users only pay when trying to access premium features. Founded…

Executive Summary: GoFundMe is a crowdfunding platform that simply allows anyone to raise money for social causes. Campaigns can be launched in various categories, ranging from emergencies to medical. Individuals as well as teams and charities are eligible to open campaigns on the platform. GoFundMe makes money by charging users a fee for every donation they receive. These are called platform and transaction fees. The company furthermore generates money from donations that users can make…

Executive Summary: Acorns is a mobile-first investment platform that allows users to invest their spare change. Members can also open a savings (both for adults and children) as well as an IRA account while saving money through the company’s cashback program. Acorns makes money by charging users a monthly subscription fee. The company offers three plans, namely Lite, Personal, and Family. Other streams of income include referral fees from its cashback program as well as…

Executive Summary: Credit Karma is a personal finance company that is best known for providing credit scores free-of-charge. It allows users to access their credit data at any time. Plus, the company proactively monitors a person’ credit health and suggests various ways to improve their score. The business model of Credit Karma is centered around referral fees. The company makes money whenever a user signs up for a product or service that the company recommends.…

Executive Summary: Redfin is a real estate brokerage that utilizes technology to optimize the home buying and selling experience. The business model of Redfin is based on charging a listing fee for every home sold through its platform. Furthermore, the company makes money by flipping homes, charging a service fee (via RedfinNow), issuing mortgages, as well as a concierge service. Founded in 2002, Redfin has become one of North America’s leading online brokerage firms. The…

Executive Summary: OfferUp is a mobile-first C2C marketplace on which users can buy and sell items. Available categories include clothing, furniture, automobiles, and many more. The business model of OfferUp is based on charging sellers a fee for every sale made and shipped through its platform. The company furthermore makes money through promotional listings and a dedicated program for car dealerships. Founded in 2011 and based out of Bellevue, Washington, OfferUp has quickly grown to…

Executive Summary: Zillow is a real estate company that offers various products targeted at both home buyers and sellers. Its services include, amongst other, advertising tools for agents and other real estate professionals, a home-buying business, or marketplace to advertise homes for sale and rent. The business model of Zillow is comprised of three distinct segments, namely Homes, IMT, and Mortgages. The company makes money by flipping homes (and charging a sales fee), collecting fees…