Plaid (company)

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Plaid Inc.
Private subsidiary
IndustryFinancial technology, Financial Services
FoundedMay 2013; 6 years ago (2013-05)
FoundersZach Perret
William Hockey
Headquarters
Area served
United States
Key people
Zach Perret (CEO)
ProductsTransactions, Auth, Balance, Identity, Income, Assets, Investments
ParentVisa Inc.
Websiteplaid.com

Plaid is an American financial services company based in San Francisco, California. The company builds a data transfer network that powers fintech and digital finance products.

The company builds a technology platform, which enables applications to connect with users’ bank accounts.[1] Plaid focuses on enabling consumers and businesses to interact with their bank accounts, check balances, and make payments through financial technology applications.[2]

History[edit]

Plaid was founded by entrepreneurs Zach Perret and William Hockey in 2013.[3] The pair of entrepreneurs originally attempted to build consumer financial management products, including budgeting and bookkeeping software.[4] When confronted with difficulties in connecting bank accounts required for these tools, Plaid pivoted its core business focus to a unified banking API.[5] The company raised a $2.8M seed round from Spark Capital, Google Ventures, and New Enterprise Associates in late 2013. In 2014, they raised $12.5M from New Enterprise Associates. On December 11, 2018, they announced a $250 million Series C round with a valuation of $2.65 billion. The funding round was led by Mary Meeker, with Andreessen Horowitz and Index Ventures also joining as new investors. Former backers Goldman Sachs, NEA and Spark Capital also participated.[6] In January 2019, Plaid acquired competitor Quovo for $200M.[7]

Round Date Lead Investor Amount Raised Valuation
Seed Sept 19, 2013 Spark Capital $2.8M --
Sereis A Nov 15, 2014 New Enterprise Associates $12.5M --
Series B Jun 19, 2016 Goldman Sachs Investment Partners $44M --
Series C Dec 11, 2019 Mary Meeker, Index Ventures, Andreessen Horowitz $250M $2.65B

On January 13, 2020, Plaid announced that it had signed a definitive agreement to be acquired by Visa for $5.3 billion dollars.[8] The purchase is subject to regulatory review and closing conditions.[9] In the first week of trading following the announcement of the acquisition, Visa's stock price gained 6.1% or $25.5 billion dollars in market capitalization.

References[edit]

  1. ^ "Plaid – Press". plaid.com. Retrieved 2017-05-31.
  2. ^ "6 Fintechs Disrupting The Industry". Inc.com. 2017-01-26. Retrieved 2017-05-31.
  3. ^ "Crunchbase company profile: Plaid". www.crunchbase.com. Retrieved 2017-05-31.
  4. ^ Velazco, Chris. "Rambler Takes Home The Disrupt NY 2013 Hackathon Grand Prize, Learn To Drive And Radical Are Runners Up | TechCrunch". Retrieved 2017-05-31.
  5. ^ Ha, Anthony. "Plaid Raises $2.8M To Make Banking Data More Developer Friendly | TechCrunch". Retrieved 2017-05-31.
  6. ^ Rooney, Kate (2018-12-11). "Plaid's $250 million funding round propels it to $2.7 billion valuation". www.cnbc.com. Retrieved 2018-12-12.
  7. ^ Tesfaye, Mekebeb. "Plaid snags API competitor Quovo for $200 million". Business Insider. Retrieved 2020-01-25.
  8. ^ "Visa is acquiring Plaid for $5.3 billion, 2x its final private valuation". TechCrunch. Retrieved 2020-01-13.
  9. ^ "Visa to Acquire Fintech Startup, Plaid for $5.3 Billion". CurrencyScoop. Retrieved 2020-01-13.