Iconiq VCs spent two years courting Chime and the firm isn’t selling its stake

The venture capital landscape was electrified on Thursday as neobank Chime made its debut as a public company. The firm successfully raised $864 million at an initial share price of $27, which surged to $43 on its first day of trading. While not the largest IPO of the year—CoreWeave had raised $1.5 billion in March—the event was nonetheless significant, especially given Chime's impressive roster of investors. Among these investors is Yoonkee Sull of Iconiq, who, along with partner Greg Stanger, spent two years developing a relationship with Chime before deciding to invest. Iconiq, well-known in Silicon Valley for managing assets for high-profile billionaires like Mark Zuckerberg, boasts a portfolio that spans various industries, including notable names such as Canva and Databricks. With assets totaling $80 billion, Iconiq is active in both public markets and venture capital, focusing primarily on growth-stage investments. Sull recounts his initial meeting with Chime co-founders Chris Britt and Ryan King back in 2017, noting that they visited Chime’s offices, reflecting Iconiq’s preference for direct engagement with founders rather than traditional pitch sessions. The timing was crucial; just a year earlier, Chime had been struggling financially, with King facing rejections from over 100 venture capitalists before eventually securing a $9 million lifeline from Lauren Kolodny. As Sull observed Chime's progress over the subsequent two years, he became increasingly convinced of the founders' vision. This confidence led Iconiq to participate in Chime’s oversubscribed $200 million Series D funding round in 2019, where shares were priced at $5.22. Sull explained that in a competitive landscape, Iconiq opted for Chime, believing in the founders' focus and commitment. As the company further matured, subsequent funding rounds saw share prices rise to approximately $41 for Series E and $60 for Series F. Despite the successful IPO, not all private shares are currently profitable, and Sull refrained from disclosing the exact amount Iconiq invested. However, he confirmed that Iconiq has no plans to sell its shares immediately, indicating a strategic long-term vision. Iconiq is among several investors celebrating Chime's transition to a public company. Investor Shawn Carolan from Menlo Ventures highlighted the years of hard work behind what may appear to be an overnight success. Moreover, Cathay Innovation, which led Chime’s early Series B funding, also capitalized on the IPO, selling a portion of its stake at a significant profit.