Scoop: Y-Combinator fintech graduate seeks $50M valuation
Better Financial Corp., a graduate of the Y-Combinator winter class of 2022, is looking to raise $5 million in funding at a $50 million valuation for its seed round, sources with knowledge of the matter tell Axios.
Why it matters: Investors say they've largely seen valuations in this post-YC cohort ranges between $20 million to $30 million, making Better Financial Corp.'s figure a standout.
Context: Consumer fintech is a difficult space, with high customer acquisition costs. But Better is betting it can do better, so to speak, by operating multiple brands aimed at different populations.
How it works: We're building Thrasio for fintech, a family of consumer brands built on a shared stack," CEO and founder Kaushik Tiwari said during the company's YC Demo Day presentation.
- Given the explosion of embedded finance companies, Better Financial Corp. is able to spin up new brands in about four weeks, the company said as part of the presentation.
- By housing multiple brands, the company believes it can cross-sell more effectively and lower customer acquisition costs.
Read more about the company, and how much it has raised so far, at Axios Fintech Pro.