New updates have been reported about Chime (PC:CHIMQ)
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Chime, the neobank, has successfully transitioned into a public company, raising $864 million with its initial public offering (IPO) at a share price of $27, which surged to $43 on opening day. Despite not being the largest IPO of the year, Chime’s debut is significant due to its backing by prominent Silicon Valley investors, including Iconiq Capital. Iconiq, known for managing assets for high-profile billionaires, has been a strategic supporter of Chime since 2019, participating in its oversubscribed Series D round. Iconiq’s investment decision was influenced by Chime’s founders, Chris Britt and Ryan King, who demonstrated a clear vision and focus on providing banking and credit-building resources to the average consumer, contrasting with Iconiq’s typical wealth management clientele.
Chime’s journey to IPO was not without challenges. In 2016, the company faced financial difficulties, nearly running out of cash before securing a crucial $9 million Series A extension round. Over the years, Chime’s founders consistently delivered on their promises, attracting further investments from Iconiq and others. Despite the successful IPO, not all private shares are currently above water, with Series E, F, and G investors having paid higher prices per share. Iconiq, however, remains committed to its investment, opting not to liquidate its shares during the IPO. This milestone marks a significant achievement for Chime and its investors, highlighting the company’s resilience and strategic growth in the competitive fintech landscape.