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Inside Upstart’s IPO filing

  • In the wake of Ant's massive IPO being scuttled, digital lending platform Upstart has filed to go public.
  • Its IPO documents show a company that's growing, profitable, and expanding credit to more people.
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Inside Upstart’s IPO filing

In the wake of the failed Ant IPO, another fintech has thrown its hat into the IPO ring. Digital consumer lending platform Upstart has filed with the SEC to go public.

The company has raised $144 million to date from investors like Khosla and NEA. The company was last valued at $750 million during its $50 million Series D in 2019, according to Pitchbook.

The company was founded by three ex-Google employees with the intention to bring AI tools to the lending process. Upstart models incorporate more than 1,600 variables and have been trained by more than 9 million repayment events. The company uses increasingly sophisticated machine learning to interpret these almost 15 billion cells of data to enable a more predictive model.

upstart-flywheel

Inside the Upstart IPO

In 2019, the Consumer Financial Protection Bureau reported that a study by Upstart of its data using a methodology specified by the CFPB showed that its AI model approves 27% more borrowers than a high-quality traditional model, with a 16% lower average APR for approved loans.

 


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