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This is not a fintech company, it’s a holding company. Selling their financial products they said is a secondary new revenue stream - their primary revenue stre
by soared 3y ago
This is not a fintech company, it’s a holding company. Selling their financial products they said is a secondary new revenue stream - their primary revenue stream is from the companies they acquire, which for some reason decreases over time as they sell back stock to employees.
Maybe they’ve identified that employees in small business will overpay for stock in the company they work at. Then this is just a financial move to own that stock and sell it overvalued to employees?
- wombat-man 3y agoWell, it sounds like the long term strategy is to develop business software solutions that work perfectly for their various arms, that they can then take external and pitch to other small businesses.
- esjeon 3y agoIt's like real estate development. You buy a land, develop it, and sell it at a higher price. Same here. You buy a small business, improve it by adapting your solution, and sell it back at higher price. Of course, the "improve"-ment part better be real, but it sounds like a win-win business model if properly conducted.
- gremlinsinc 3y agoit sounds like it square bought food truck businesses that weren't using square pos and basically installed square pos and resold the business with contract stating they couldn't switch pos providers....I mean it's a way to guarantee vendor lockin but it's also risky. I do hope they follow through with the 80 percent ESO plan later on, as I'd love to see that the norm not the exception in the next generation.
- SoftTalker 3y agoIt’s generally a bad idea to buy stock in the business where where you work. It’s the opposite of diversification. If it’s equity compensation OK, but you should diversify that into other investments as soon as you can.