Global venture capital is hugely invested in neobanks. Crunchbase reports that Starling Bank, a London-based bank, has raised more $900 million. According to the same data source, Chime raised $1.5 billion. Monzo has raised close to $650 million. The list continues: Juni, an E-commerce-focused Neobank, raised $21.5 million in June. Novo, a neobank that focuses on SMBs, raised $41million in June. Nubank has raised $2.3 Billion. FairMoney also secured more than $50 Million.You could go on.The Exchange explores markets, startups, and money.It's available every morning at Extra Crunch. You can also subscribe to The Exchange newsletter every Saturday.However, despite our tendency to lump all fintech companies that focus on banking, whether they serve business customers, consumers or both, there is wide variation in how these neobankers are doing in the market.The Exchange noticed that many neobanks were suffering severe losses back in August 2020. We believed that capital was being poured into fintech to invest aggressively for growth. Recent results support this view.However, not all neobanks have become the unprofitable businesses they used to be. Chime stated in September 2020 that its unadjusted EBITDA is positive. This is a more stringent profit metric than Lyft's that it used to gain its rise to the top of the profitable companies. Lyft had positive adjusted EBITDA for its most recent quarter but spent cash to finance its operations, and suffered a large net loss.Starling Bank has reached what it calls profitable territory in October 2020. Since our initial look at neobank results, things have changed.Revolut's recent financial performance continued the positive trend in neobank news. However, the company posted somewhat negative aggregate results for 2020. We were able to see the fintech company's quarterly results. It was growing its gross margins, revenues and almost reaching adjusted net income neutrality in Q4 2020. We were impressed.Let's continue our ongoing dig into neobank results this morning by analysing recent data from Starling Bank, Monzo and other banks. You will see that not all neobanks are making it to the top, even though some are able to balance their books and make profits.
