FactorTrust

Jun 6, 2023

06.01.2023 MissionOG From time-to-time MissionOG’s deep experience within the fintech sector enables us to benefit from successful pattern matching. While all investment opportunities are unique, there are certainly inputs to a decision that when replicated, greatly increase the chances of success. Today, we announce an investment in RIBBIT, a company and opportunity where those inputs have aligned. RIBBIT represents the intersection of exceptional team expertise, ground-breaking product innovation, robust investor support, and a ripe market opportunity. Commensurate with the investment, RIBBIT is acquiring ValidiFI, a leading banking and payment data solutions platform. The following is our assessment of what we believe is an ideal confluence of inputs that positions the company and our investment for success. A Stellar Team RIBBIT is led by a proven CEO and prior successful founder and entrepreneur, Greg Rable. The MissionOG team had the great fortune of working side-by-side with Greg as he built alternative credit bureau FactorTrust, later sold to TransUnion, into the leading provider in the industry. Greg and team, including FactorTrust alumni John Gordon (COO) and Kyle Comstock (CTO), have a profound understanding of this market and proven ability to grow this type of business. Furthermore, the close relationships with team members from ValidiFI are noteworthy. Apoorva Patel, former head of software development for FactorTrust now serves as the CTO at ValidiFI, a company we have followed and admired. The executive team of ValidiFI, led by Oscar DiVeroli, have unique and extensive knowledge within this market. As Greg noted, “I’m excited about the enormous opportunity to bring these two dynamic industry leading companies together. The combination of talented people, robust data, and best in class products makes this a win-win for our customers and us.” The Revolutionary Products RIBBIT and ValidiFI’s respective solutions are at the forefront of credit decisioning science and application. The platform from the combined entities is what FactorTrust would have built had it not been acquired. Their approach, which combines advanced analytics with permissioned and traditional credit data, allows underwriters to offer superior products to more customers, satisfying both financial inclusion and risk management objectives. By merging RIBBIT with ValidiFI, we firmly believe we are positioning the combined entity as a continued clear leader in their markets. Ideal Investor Partner The opportunity to work again with ABS Capital is a significant component to this investment. MissionOG and ABS successfully partnered to lead the prior investment in FactorTrust. The joint familiarity between the two investment teams allows us to bypass learning curves and accelerate a proven process of joint collaboration. The Market Opportunity A vast market opportunity is a critical component of why we believe in the investment and combination of the companies. The current regulatory climate, a wide array of legacy prospects coupled with an influx of innovative fintech competitors, and the state of the market and economy, make it a critical time to invest in the alternative credit data space. Currently, regulators are pressuring banks and lenders to widen their financial inclusion initiatives, and agile competitors or neo-banks already leverage alternative data. Moreover, a more challenging economy has increased the population of consumers that fall into the near and sub-prime designation. Serving this growing customer base effectively will be a focal point for financial institutions, positioning companies such as RIBBIT at the forefront of this change. Our investment in RIBBIT represents a holistic alignment of proven teams, innovative products, familiar and successful investors, and a highly promising market opportunity. We look forward to an exciting journey ahead, paving the way for more inclusive financial services. Want to work with us?