You don’t have to feel like much of an oracle to predict Curve as the first super large fintech to go bust.
When I looked at their pitch deck and did a bit of googling it seemed like some people may have been using curve to pay HMRC using their credit card indirectly (as far as I know HMRC do not accept credit card payments) - and then getting cash back from their credit card.
But I read recently that Curve now apply a fee to do this - so I would guess if people were using Curve for this reason, they will now stop using curve, reducing active users further.
Gaming CC cashback/points has always seemed to me the main draw of Curve. I stopped using mine in the early days after Amex withdrew support but there have always been other good points cards that could be used for the same purpose.
So it appears Curve has raised quite a big chunk of cash (95m$) although apparently a bit less than what was expected (around 100m£)! Their plan is to launch in the US. Any happy crowdfunder around?
Without knowing the valuation I can’t comment.
I’ve not had an email from them yet confirming the terms.
im an investor in Curve .
Curve just filed their accounts— Robert Collings (@RobertCollings_) January 11, 2021
£28.5m operating loss on £5.9m of revenue 😯
(It was a 14 month period so not entirely comparable to 2018)
- Gross txn volume: £826m (up from £219m)
- Customers: 860k (up from 230k)
- 73% of revenue from interchange fees
Users doubled in 2020 then - at 2m now.
Did anybody who invested in Curve through Crowdcube get contacted about the latest investment round?
According to the docs they originally sent out it stated:
“Investors shall receive pre-emption rights providing the size of the Crowdcube Nominees shareholding remains above 2% of the Company.”
Also given that Crowdcube had an open call to register interest at - Crowdcube + Curve | Express your interest | Crowdcube
It’s all weird - did I miss a mail that others received?
Do you have any idea how curve is making money from interchange fees? I would have assumed they’d have to pass any fees onto the underlying card so wouldn’t keep any for themselves
I’m reading the Crowdcube request for interest as something that Curve aren’t involved in. It’s saying there’s a rumour that Curve are raising and, if they are, would you like Crowdcube to be a part of it. It sounds more like an evidence gathering exercise to use in a pitch to get Curve to use Crowdcube again to me.