NerdWallet

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NerdWallet, Inc.
Nerdwallet Horizontal Logo.svg
Type of businessPublic company
Traded as(Class A)
FoundedAugust 2009; 12 years ago (2009-08)
HeadquartersSan Francisco, California, U.S.
Created byTim Chen
Jacob Gibson
Key peopleTim Chen (CEO; Co-founder)
IndustryPersonal finance, fintech
RevenueIncrease US$379.6 million (2021)[1]
Operating incomeDecrease US$-39.0 million (2021)[1]
Net incomeDecrease US$-42.5 million (2021)[1]
Total assetsIncrease US$364.1 million (2021)[1]
Total equityIncrease US$257.6 million (2021)[1]
Employees675 (December 2021)[1]
URLnerdwallet.com

NerdWallet is an American personal finance company, founded in 2009 by Tim Chen and Jacob Gibson. It offers a website and app that earns money by promoting financial products to its users.

History[edit]

NerdWallet was founded in August 2009 by Tim Chen and Jacob Gibson, with an initial capital investment of $800.[2][3] Its first product was a web application that provided comparative information about credit cards.[4] Subsequently, it generated large quantities of content to help boost its search engine results.[5][6] Website traffic grew quickly in 2010[7] and, by March 2014, the website had up to 30 million users.[4] The following year, it raised $64 million in its first round of funding, at an estimated valuation of $500 million.[2][4][8]

In 2016, the company acquired the retirement planning firm AboutLife, and was valued at $520 million.[7][9][10] In 2017, company growth slowed, resulting in the layoff of 11 percent of its employees.[11]

In August 2020, the company expanded its footprint into the UK by acquiring Know Your Money, a Norwich-based startup that provides a similar range of comparison and information tools geared at people who live in the UK[12] In November 2020, NerdWallet acquired small business loan marketplace, Fundera.[13] In 2021, NerdWallet partnered with Inclusiv, a nonprofit network of community development credit unions, and committed to move millions of dollars to local credit unions to advance financial equity.[14] In November 2021, the company went public on the Nasdaq stock exchange.[15]

Products and services[edit]

The company's goal is to provide information that educates users in making financial decisions.[16] They do so by providing both reviews and comparison of different financial products, including credit cards, banking, investing, loans and insurance.[17] Its web site is directed primarily towards Millennials[4] and provides information on credit card selection and benefits, college loans, banking, mortgage loans, stock trading and insurance policies.[16][18]

By May 2015, the company developed business relationships with eight banks and a dozen insurance companies.[16] In exchange for new customers, affiliated banks pay NerdWallet a success fee.[4] Co-founder Chen reported that the company became profitable by virtue of the fees it earned through matching users with financial products and services.[8]

Administration[edit]

Tim Chen is the CEO and co-founder of NerdWallet and board member at the National Foundation for Credit Counseling.[10][19] The company's "transparent" and "self-critical" management style was reset in 2013, when Chen fired 20% of the workforce and restructured company management into a flatter "matrix" structure.[5]

In March 2014, former LinkedIn VP Dan Yoo replaced co-founder Gibson as chief operating officer and Flo Thinh joined as VP of Talent.[20] By 2015, the company had 200 employees and added Vikram Pandit and James D. Robinson III to its board of advisors.[18][21]

In 2020, former eBay executive Lauren St. Clair joined NerdWallet as CFO. The company added Lynne Laube and Jennifer Ceran to its board of directors.[22]

See also[edit]

References[edit]

  1. ^ a b c d e f "NerdWallet Full Year 2021 Results". U.S. Securities and Exchange Commission. 24 February 2022. Retrieved 18 March 2022.
  2. ^ a b Shieber, Johnathan (May 11, 2015). "Scorching FinTech Market Keeps Attracting New Players as NerdWallet Raises $64 Million". Tech Crunch.
  3. ^ Saranow Schultz, Jennifer (August 25, 2010). "A New Way to Shop for Credit Cards". Bucks Blog. The New York Times. Archived from the original on 27 August 2010. Retrieved 7 January 2014.
  4. ^ a b c d e Tansey, Bernadette (21 May 2015). "NerdWallet's Big Ambitions". Xconomy. Retrieved June 28, 2015.
  5. ^ a b Aspan, Maria (February 2016). "The $520 Million Company That's Solving All Your Financial Needs". Inc.
  6. ^ Rose, Jeff (April 20, 2010). "Interview with Tim Chen, Founder of NerdWallet". Good Financial Cents. Archived from the original on 23 April 2010.
  7. ^ a b Huddleston, Tom Jr. (May 9, 2018). "After being laid off, this 35-year-old founded NerdWallet with $800 - now it's worth $500 million". CNBC. Retrieved August 18, 2018.
  8. ^ a b McBride, Sarah (May 11, 2015). "UPDATE 1-Startup NerdWallet raises $64 million in first round of funding". Reuters. Retrieved 30 June 2021.
  9. ^ Yeung, Ken (June 28, 2016). "NerdWallet acquires AboutLife to expand into retirement planning services". VentureBeat. Retrieved August 18, 2018.
  10. ^ a b Aspan, Maria (January 20, 2016). "The $520 Million Company That's Solving All Your Financial Needs". Inc. Retrieved August 18, 2018.
  11. ^ Dickey, Megan Rose (November 16, 2017). "NerdWallet lays off 11 percent of staff due to missing profitability goals". TechCrunch. Retrieved November 18, 2018.
  12. ^ Lunden, Ingrid (August 27, 2020). "Nerdwallet acquires UK's Know Your Money as it expands outside the US". TechCrunch. Retrieved 27 April 2021.
  13. ^ Ha, Anthony (November 2, 202). "NerdWallet acquires small business loan marketplace Fundera". TechCrunch. Retrieved 27 April 2021.
  14. ^ Peters, Adele (March 9, 2021). "Nerdwallet is moving millions of dollars to local credit unions". Fast Company. Retrieved 27 April 2021.
  15. ^ "Personal finance firm NerdWallet valued at $1.5 bln in strong market debut". Reuters. 4 November 2021.
  16. ^ a b c Hall, Gina (May 12, 2015). "Financial Advising startup NerdWallet Raised $64 Million in Series A". Silicon Valley Business Journal. Retrieved June 30, 2015.
  17. ^ CreditLoan Team (February 27, 2019). "Everything You Need to Know About NerdWallet". Credit Loan. Retrieved 2019-08-07.
  18. ^ a b Shieber, Jonathan (May 11, 2015). "Scorching FinTech Market". Tech Crunch. Retrieved June 28, 2015.
  19. ^ Ryssdal, Kai; Purser, Bennett (September 19, 2018). "NerdWallet wants to help you with finance". Marketplace. Retrieved December 6, 2018.
  20. ^ Ha, Anthony (24 March 2014). "Former LinkedIn VP Dan Yoo Joins NerdWallet as COO". TechCrunch. Retrieved 25 March 2014.
  21. ^ Halloran, Michael (May 15, 2015). "NerdWallet Gets $64 Million on Road to $1 Billion Valuation as Money Pours into Fintech". TheStreet. Retrieved June 30, 2015.
  22. ^ Thier, Jane (December 17, 2020). "NerdWallet taps eBay CFO". CFO Dive. Retrieved 27 April 2021.

External links[edit]