Chime almost died in 2016, turned down by 100 VCs. Today it IPO’d at $14.5B.

In a significant milestone for the fintech sector, neobank Chime made headlines on Thursday by successfully raising $864 million in its IPO, pricing shares at $27, surpassing the initial range of $24 to $26. This pricing established a market capitalization of approximately $9.8 billion at launch. Despite this figure being lower than its last private valuation of $25 billion, the company's shares opened at $42, climbing to around $14.5 billion by midday amidst robust trading activity, as reported by Yahoo Finance. The strong interest from retail investors can be attributed to Chime's impressive financial performance. In 2023, the company generated $1.3 billion in revenue, with projections to increase to $1.7 billion in 2024. Notably, losses drastically decreased from $203 million in 2023 to just $25 million in 2024. By the first quarter of 2025, Chime achieved profitability, reporting $13 million in net income on $519 million in revenue, although company management cautioned that future expenditures on growth might impact profitability. Chime's journey to the IPO was fraught with challenges, including layoffs in 2022 and regulatory disputes that forced the company to refrain from branding itself as a “bank.” However, the most daunting period occurred before the company even secured Series B funding. Co-founder Ryan King recounted the hardships faced in 2016, when the team pitched their idea to over 100 investors, all of whom declined. “By early 2016, we were desperate for funds and had received nothing but refusals,” King revealed, reflecting on the struggle to convince venture capitalists of the viability of their vision. The company's mission was to create an accessible online banking experience for the working class, free from overdraft fees and equipped with credit-building tools. Despite their fervent belief in their concept, they faced skepticism from investors wary of the regulated financial landscape. The turning point came when they found support from Lauren Kolodny, a then-partner at Aspect Ventures, who led a $9 million funding round after being the only investor willing to take a chance on Chime. “She believed in us and our vision,” King stated, expressing gratitude for her faith in their mission. This investment marked a critical moment, allowing Chime to accumulate a total of $21 million in funding at that time. Fast forward a few years, and Chime would raise approximately $2.65 billion as a private company, attracting attention from renowned venture capital firms. Kolodny’s early investment at just 26 cents per share proved to be incredibly lucrative, emphasizing her foresight. During the IPO roadshow, a memorable moment occurred when a security guard recognized Chime’s card in co-founder Chris Britt's wallet, expressing his loyalty as a customer. “Checking and savings, baby!” he exclaimed, striking a high five with the founders, highlighting the company's journey from near failure to a celebrated public offering.