[Varo Money in Reuters] Analysis: Digital banks gain U.S. customers during pandemic, thanks to early deposits

(Reuters) – Digital banks including Chime, Varo and Current have won over more U.S. customers during the coronavirus pandemic by processing stimulus payments quickly, setting them apart from traditional banks and generating valuable word-of-mouth referrals.

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[Varo Money in Banking Exchange] US Challengers Grow Users to 39M in 2020

(Reuters) – Digital banks including Chime, Varo and Current have won over more U.S. customers during the coronavirus pandemic by processing stimulus payments quickly, setting them apart from traditional banks and generating valuable word-of-mouth referrals.

Read more here.

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It may not be as glamorous as D2C, but beauty tech is big money

Last week, Procter & Gamble (P&G) announced that it was terminating plans to acquire razor startup Billie following a U.S. Federal Trade Commission lawsuit to stop the deal.

Last year, Edgewell Personal Care ditched its debt-heavy $ 1.37 billion deal for Harry’s, Inc, formerly valued at $ 1 billion after the FTC sought to block the acquisition.

In addition to these FTC challenges, it is also now becoming clear that relying on VC-subsidized products and celebrating outrageous valuations can be problematic for D2C brands. With a few wonderful and rare exceptions such as Rothy’s (which raised $ 42 million but was profitable from the beginning and generated $ 140 million in revenue within two years of launching), D2C unicorns are addicted to the cycle of venture funding to feed growth in order to maintain a high valuation multiple.

The path to profitability has become a more important part of the startup story versus growth at all costs.

This works for a while; however, when the path to profitability appears murky and exit options either don’t appear or only appear from nontech companies with very conservative multiples, the walls start crumbling.

In a WWD article, Odile Roujol, the former CEO of Lancôme who launched venture fund FAB Ventures, said, “Generally speaking, the era of $ 1 billion valuations for beauty companies is over. The people that struggle have been the companies that spend so much money in just a few years.” She went on to say, “The big corporations now … are not ready to spend $ 1.2 billion, $ 1.5 billion on such a brand like Glossier.”

This change in sentiment from acquirers is further fueled by recent research on the challenges of turning hypergrowth companies profitable. In his Harvard Business School case study “Direct to Consumer Brands,” Professor Sunil Gupta wrote, “Acquiring DTC brands is easy for incumbent conglomerates, but making them profitable is challenging. More than three years after Unilever acquired Dollar Shave Club, it was still unprofitable.”

Unilever executives learned that the average cost of acquiring a new customer online was about the same as in stores. David Taylor, CEO of P&G, said his company was still figuring out how to turn recently acquired direct-to-consumer brands into profitable businesses.

Taylor summarized this dilemma, saying, “There are many, many launches that grow fast … a business model that makes money is a higher challenge.” Since making these realizations, incumbent conglomerates will be more cautious when considering the acquisition of hyped D2C brands that raised lots of venture capital.

Beauty tech is a better bet: Meitu and Perfect Corp.

What’s cooler than beauty companies that are (or were) valued at $ 1 billion? Beauty tech SaaS companies that are worth $ 5.2 billion at IPO. We don’t hear much about the leading global beauty tech companies such as Meitu and Perfect Corp. because their founders are not celebrity influencers, they don’t have massive Instagram followings here in the U.S. and they are not celebrated in our media. Although their companies are based in Asia and they raised money mostly from Chinese investors, their companies are global successes.

Startups – TechCrunch

[Varo Money in The Penny Hoarder] How to Save Money: 6 Step-by-Step Ways to Save Big Every Month

Take a moment. Think about being your best self — living your best life. What do you really want to do with your life? Raise a happy family? Travel the world? Buy a nice house? Start your own business?

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Money Weighted Makes Cash Flow Modeling Quick and Convenient

You’ve got big plans, and being able to model your real estate cash flow will be a huge help. However, doing so in Excel can result in a variety of issues, such as formula typos that throw off the accuracy of your information, or difficulties opening a document in one version of Excel if it was made in another version. Plus, those Excel templates can start to look pretty boring after a while. Luckily, Money Weighted can help.

Money Weighted is web-based software that allows you to quickly and easily create real estate cash flow models for investment analysis. It gives you control over your cash flow without the learning curve or errors involved with building models in Excel from scratch.

Money Weighted works by using a cash flow modeling “sandbox” that can help you get your first model started in three minutes. While it includes calculator features, Money Weighted is more than just an online calculator – it gives users complete control over their assumptions and inputs, allowing users to build their cash flow model from scratch or use a convenient template. Users can add line items directly into their cash flow from any device, from any location, thanks to the models being built and saved in the cloud.

With Money Weighted, users are able to input assumptions around purchases, sales and debt, then use built-in calculators to see the results. Users can also input multiple tenants, create one-time or recurring line items, and derive expenses or income from other subtotals or line items.

Features
Money Weighted includes a collection of features to make cash flow modeling simple.

Cloud: Cash flow models are built in the cloud, making them easy to access and update when needed, wherever needed, and from any device.

Reports: Users can create reports to show investors how cash moves at the property level or portfolio level. In addition to numerical data, reports can include charts and other visual elements to make it easier for viewers to understand at a glance the information being presented.

Model building: Users can easily create, edit and copy property models. Up to 50 property models can be added to one or more portfolios.

Metrics: Money Weighted offers helpful metrics at the property and portfolio levels, including profit, NVP, IRR, multiple, debt to purchase ratios, peak contributions, and more. Property-level analytics also include cap rates, debt service coverage ratios, sensitivity analysis, and cash on cash.

Performance comparison: Users can compare the performance of their property or portfolio per unit or ft², allowing them to instantly identify assets that are over-performing or under-performing.

Interested?
Say no to boring, error-prone Excel spreadsheets and yes to powerful cash flow modeling made with Money Weighted. Built from the ground up by real estate investors and analysts, Money Weighted was designed to make it easy, fast, and less error-prone to create cash flow models. Sound like something you could use? Visit moneyweighted.com to learn more and check out their free beta version.

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