Fintech exits: Could this year mark the technology sector’s coming of age?


Twice in December the New York Stock Exchange’s famous pillars donned the colours of alternative lenders on the day their shares began trading publicly.

Financial News First came Lending Club’s red banner, then OnDeck’s blue and turquoise, for initial public offerings worth $1 billion and $230 million respectively.

The closely watched deals marked a coming of age of sorts for fintech firms, many of which are still in the earliest phases of life. They also raised the question of what lies ahead for fintech exits in 2015.

While some venture capitalists and fintech firm founders see a small, but swelling pipeline of firms ripe for public exits, others say fintech has a long way to go before it truly comes of age.

Matt Harris, managing director at Bain Capital Ventures in New York, said: “I think we’re going to see – pending market availability – a lot more IPOs relative to private exits in 2015 when looked at against the historic average.”


Within alternative lending specifically, Harris said the normal ratio of private exits to IPOs was about nine to one. But now, he said: “I think in this category it will be way closer to 50:50. There’s a pipeline that’s small, but super-fast growing.”

Social Finance or SoFi, which refinances student debt, is expected to file for an IPO this year and P2P lending platform Prosper is another closely watched candidate for a float in the coming years, venture capitalists say.

John Locke, a partner at Accel Partners in Silicon Valley, which has invested in small business funding firm CAN Capital, said: “2015 is going to be a big coming-out year for fintech.”

In addition to IPOs, Locke expects to see more M&A from classic financial services firms seeking to acquire the next generation of technology.

Venture capitalists describe a spectrum of fintech firms ready for some form of exit, with payments and alternative lenders looking more developed but wealth management and investment platforms and insurance fintech firms less so.

Harris said: “Payments are in the seventh inning, lending is in the fourth and capital markets and investments are earlier still.”

Venture capital investments in fintech firms reached a new high of $5.3 billion in 328 deals globally last year, according to Dow Jones VentureSource, more than twice the level in 2013.

But fintech is still just a fraction of overall venture capital investment.

Data provider CB Insights, which tracks US-based venture capital rounds, estimates that investments across all sectors reached $47.3 billion in 3,617 deals during 2014, the highest level since 2001. The firm does not break out fintech investments separately. There were 101 venture capital-backed IPOs, up for the third consecutive year, according to CB Insights.

Greg Brogger, founder of online trading site SharesPost, which allows investors to sell stakes in private companies, said: “A lot of successful exits in the last quarter of the year paved the way for a certain amount of enthusiasm going into this year. There seems to be support for those in the public market.” He added, however, that many companies still preferred to stay private, mature further, stabilise earnings and avoid market shocks that could disrupt their valuations.

Questions unanswered

The increased investment and visibility of fintech firms as they go public has raised the question of how the market and investors think about the companies.

Accel’s Locke said: “Lending Club in many ways is a bellwether for a number of other fintech companies thinking about the public market. Lending Club is being seen as a tech multiple, not a lending multiple or speciality finance multiple and rightly so.”

Lending Club’s stock was down about 20% from its first day of trading as of Friday morning while OnDeck’s share price was down about 40% from its first day as a public company. Personal finance platform Yodlee, which went public in a $75 million float in October, was trading more than 30% below its opening price.

Not all analysts have been bullish on the prospects for publicly traded P2P businesses. Sterne Agee analyst Henry Coffee wrote in a note about OnDeck this month: “In some ways, the rapidly growing marketplace lending and P2P business reminds us of the US prepaid card business five years ago.” He was referring to two companies that saw growth slow after regulatory scrutiny ramped up.

Amber Dolman, a partner in law firm Goodwin Procter’s financial institutions group, said: “You’ve got all the same pressures of a technology company – high, high growth but not necessarily a proven history of profitability. But when you start dealing with fintech you get the regulatory overlay.”

Scott Raney, a partner at Redpoint Ventures, said advisory was another area that held promise but where there were still questions. Companies such as Acorns, which helps save small amounts of money, and personal finance firm Personal Capital, are examples of firms on the rise in this sector.

Raney said: “They’re scaling [assets under management], they’ve had some very successful financings and are on nice trajectories, but there are still some questions left unanswered. Their models are based on AUM and they need a lot of accounts. How do you scale the acquisition of and managing those accounts?”

Public vs private

Looking at the roster of advisers on the three fintech IPOs in the third quarter, traditional investment banks, including Morgan StanleyGoldman SachsCredit SuisseCiti, and Bank of America Merrill Lynch are among the bookrunners.

But several fintech specialists say the decision to pursue a private versus public exit is largely driven by venture capital firms.

Dolman at Goodwin Procter said: “Before they listen to bankers, they’re listening to their investors and boards. The biases of a strategic investor on the board or private equity or venture capital fund is really going to guide the process as to whether or not the company is focused on an IPO or merger.”

Ex-bankers including former Citi banker Hans Morris, former Citi chief Vikram Pandit and former Morgan Stanley chief executive John Mack are among the advisers that are increasingly active in advising on investment in the sector and investing in fintech firms.

Stephane Dubois, chief executive of financial data firm Xignite, said fintech as a whole still had growing up to do before the market saw a spate of public exits.

He said: “I’m not anticipating a lot of IPOs in fintech in 2015. For a lot of the start-ups we heard about in 2014, it’s too early on.”

Source: Financial News


Partners with ESG Book to Drive Investor Sustainability Engagement

, April 12, 2022 /PRNewswire/ -- Xignite, Inc., the leading provider of market data APIs to brokers and wealth managers, announced the launch of a new Environmental, Social and Governance (ESG) data API in partnership with ESG Book, a global leader in ESG data and technology. Xignite's brokerage, wealth, and media customers can now increase user engagement and retention with state-of-the-art sustainability trading products.

As ESG investment has gone mainstream, today's digital investors, institutional investors, and corporations alike require ESG data to help them answer questions that range from a company's workforce diversity to its commitment to a net zero future. In this context, brokers and wealth managers can use ESG data to increase client engagement around their portfolios and differentiate their offerings in a very fragmented marketplace.

"We are thrilled to extend our highly scalable and advanced API platform to include ESG Book's real-time sustainability dataset. With the recent SEC announcement of proposals for climate disclosure, the momentum for sustainability data in the U.S. just keeps on building. If you do not offer ESG data and portfolio analytics to your clients today, you will run into growth and retention challenges," said Stéphane Duboi, the CEO of Xignite.

Dr Daniel Klier, CEO of ESG Book, said: "As capital markets transition towards a more sustainable, net-zero future, demand for accessible, comparable and transparent ESG data has never been higher. We are delighted to be partnering with Xignite, a global leader in API solutions, to deliver our real-time ESG data products to clients at both speed and scale through the latest cloud technology."

Xignite's new ESG API is designed to fast track the launch of ESG powered products. Transparent, well-structured and easy to understand ESG datasets eliminate the need for robust in-house ESG expertise. Advanced screener endpoints further simplify development by eliminating the need to maintain a database.

XigniteGlobalESG API covers a comprehensive universe of public companies domiciled in North America, EMEA, APAC, and Latin America. In addition to ESG scores, this API provides Global Compact scores, involvement data, temperature scores, and raw emissions data.

About Xignite

Xignite is the leading provider of market data API solutions to brokers, wealth managers, and the tech firms who serve them. Xignite has been disrupting the market data industry from Silicon Valley since 2003 when it introduced the first commercial REST API. Today, more than 700 firms use Xignite's APIs more than half a trillion times a month to deliver high-value data to digital investors. Visit or follow us on Twitter @xignite.

About ESG Book

ESG Book is a global leader in sustainability data and technology. Through a cloud-based platform, ESG Book makes sustainability data more widely available and comparable for all stakeholders, enables companies to be custodians of their own data, provides framework-neutral ESG information in real-time, and promotes transparency. It counts many of the world's leading financial organisations among its clients, which collectively manage over $120 trillion in assets.


Sales Up 50%. API Volumes Now Exceed Half a Trillion per Month.

Xignite, Inc., the leading provider of market data APIs to brokers and wealth managers, announced that 2021 was a banner year for its business. Xignite experienced more than 50% growth in new client bookings over 2020. Most of this growth was fueled by heavy demand from new brokerage and wealth management applications as more firms entered the business. Xignite also saw a 53% increase in API consumption to a whopping half a trillion requests a month - driven mainly by increased activity from digital investors as they consumed more and more data during the pandemic.

The Digital Investor Revolution was created by the convergence of zero-cost trading, fractional shares, working from home, the pandemic, and the emergence of a new and more powerful generation of retail investors. This has created significant momentum in trading and wealth management, primarily US-based equity and options trading. And it has fueled the entrance of a considerable number of new prominent players in the field, especially embedded finance providers. It all came to light in early 2021 with the Reddit and Gamestop phenomenon. But it has not proven to be short-lived. The transformation could be profound. Indeed Xignite saw its momentum accelerate in Q4-2021, with bookings growth exceeding 310% over the same quarter in 2020.

“Xignite is one of the oldest and most scalable commercial API infrastructures globally. It’s not a surprise that our clients have grown to rely on us for their mission-critical business needs,” says Stephane Dubois, Xignite’s CEO and Founder. “It’s not only the mind-numbing volumes that we have to deal with,” adds Dubois, “It’s also the 4-nine+ level of availability we deliver day in and day out coupled with the awesome market data quality and the high touch responsiveness of our support teams. These metrics matter to large embedded finance firms entering the business or legacy firms migrating to the cloud. They spend tens of millions of dollars entering the business. They don’t want to see it evaporate because of poor data quality or API availability.” 

About Xignite

Xignite powers the investing apps and services that enable millions of people to manage their portfolios and trade stocks from a phone or tablet with the industry’s best financial market data APIs. We help more than 700 fintech trading, investment, and analytics firms like Robinhood, SoFi, and Betterment provide digital investors with the market data they need, such as real-time stock prices and company news. Visit or follow on Twitter @xignite.


Xignite, Inc., the leading provider of market data APIs to brokers and wealth managers, announced the launch of a new cryptocurrency data API. Xignite’s brokerage, wealth, and media customers can now increase the value and stickiness of their services to digital investors by taking advantage of the depth and breadth of data offered by this API.

Investment in cryptocurrencies has increased dramatically over the last few years and has proven to draw new investors into the world of trading. As a result, brokerage companies are trying hard to make buying, selling, and holding Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), and other cryptocurrencies as easy as possible for their clients. The XigniteCrypto API is the first to bring together a vast universe of cryptocurrency information alongside the equity, ETF, and option data brokers and fund managers need to offer high-quality services to their clients. It also provides the depth of functionality required for them to engage customers and drive trading activity

“Cryptocurrencies tend to operate in their own world,” said Stephane Dubois, CEO, and Founder of Xignite. “This means that if you want to offer integrated equity, option, and crypto trading or analytics for your clients, you are going to have to cobble up a lot of heterogeneous data from many disparate sources, and that’s a pain,” adds Dubois. “With our new crypto API, you get the depth of coverage, the quality, and the reliability across all asset classes you need to grow your business - all in one integrated solution.”

Xignite’s new cryptocurrency API, XigniteCrypto, provides real-time and historical quotes for over 900 cryptocurrencies, including coins and tokens. It includes unique API endpoints that help firms engage digital investors, using the data and tools they need to make crypto trading decisions, including price alerts, historical charting, currency conversion, and cryptocurrency news.

About Xignite

Xignite is the leading provider of market data API solutions to brokers, wealth managers, and the tech firms who serve them. Xignite has been disrupting the market data industry from Silicon Valley since 2003, when it introduced the first commercial REST API. Since then, Xignite has continually taken advantage of new technologies to help its clients grow their business and serve their customers better by using financial market data effectively. Today, more than 700 firms use Xignite’s APIs more than half a trillion times a month to deliver high-value data to digital investors. Visit or follow on Twitter @xignite.



Xignite, Inc., a cloud-based market data distribution and management solutions provider for financial services and technology companies, announced a new Vendor of Record service for clients subscribing to real-time and delayed market data. The new service vastly simplifies the administration and reporting required by exchanges and often eliminates the need to pay redistribution fees, potentially saving clients thousands of dollars a month.

As an approved Vendor of Record, also called a Service Facilitator, Xignite can redistribute real-time and delayed equities and options pricing data from Nasdaq, New York Stock Exchange (NYSE), Options Price Reporting Authority (OPRA), OTC Markets (OTCM), and the Toronto Stock Exchange (TSX). 

Adhering to the complex compliance guidelines required by exchanges is extremely difficult for investment advisers, financial advisers, or order management software providers that need to display real-time or delayed data. Each exchange has its own unique set of regulations and compliance requirements, and clients need to prove that they have control over who receives the data, in what format, and for what use case. Xignite’s Vendor of Record service eliminates the administrative burden of tracking these complex compliance requirements.

The new service utilizes Xignite’s cloud-native Entitlements and Usage Microservices to give firms complete control and transparency of their data consumption and usage. Xignite provides data entitlements, usage tracking, and exchange reporting across various data sets, users, and applications to ensure exchange compliance. Xignite’s new service sometimes eliminates the need to pay expensive redistribution fees. Exchange fees for display data, regardless of the number of users, can cost upwards of $10,000 per month. These high fees are especially difficult for smaller financial firms with just a few real-time data users.  

“Maneuvering through the maze of required compliance policies, entitlements, usage tracking, and reporting requirements, and being subjected to frequent audits is no easy feat,” said Vijay Choudhary, Head of Product for Xignite. “Xignite’s mission is to “Make Market Data Easy.” Today’s announcement is another step towards this. We are taking away the administrative burdens and complexity of licensing market data and allowing our clients the freedom to focus on their investment and trading strategies and building innovative products.”

Xignite’s Vendor of Record service is available for professional users with internal and display-only use cases. The service is available now as an add-on service for subscribers of our real-time and delayed equities and options pricing data APIs. These include:






About Xignite

Xignite has been disrupting the financial and market data industry from its Silicon Valley headquarters since 2003 when it introduced the first commercial REST API. Since then, Xignite has continually refined its technology to help Fintech and financial institutions get the most value from their data. Today, more than 700 clients access over 500 cloud-native APIs to build efficient and cost-effective enterprise data management solutions. Visit or follow on Twitter @xignite.