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Serious question: How does Circle afford a $400 million price tag when they've only raised $135 million? Their main product seems to be a Venmo clone, complete
by JustAnotherPat 9y ago
Serious question: How does Circle afford a $400 million price tag when they've only raised $135 million? Their main product seems to be a Venmo clone, complete with the lack of fees. Surely, they're not making that much money selling user data.
- xenity7 9y agoCircle also has a profitable crypto prop trading arm.
- deleted 9y ago[deleted]
- icey 9y agoMy guess is that equity in Circle was part of the purchase price -- hard to know for sure since the terms weren't announced, but this probably wasn't an all-cash deal.
- dgacmu 9y agoStock deal. Circle got $135m cash on a valuation higher than that. (480m in 2016: https://www.bloomberg.com/news/articles/2016-06-24/circle-internet-said-valued-at-480-million-in-latest-financing https://www.bloomberg.com/news/articles/2016-06-24/circle-in...) So they're probably buying Polo for X shares of Circle, where X depends on their current undisclosed valuation. But it's probably a pretty big chunk of their total.
- tomasien 9y agoCircle's main product is an OTC crypto trading desk which has been killing it. They move huge volumes for big players.
- nnx 9y agoTIL that Circle pivoted into OTC, there's no mention of it on their main https://circle.com https://circle.com where they had the previous product running. https://www.circletrade.com/ https://www.circletrade.com/ and simple searches do not give much information.
- tomasien 9y agoYeah they're keeping their old products running, hoping to be a full service bank for crypto. The OTC desk is where the money is.