The online hamsters from Reddit have a new favorite – SoFi (now SoFi Technologies), which was released on May 28 via SPAC. SoFi discussions accounted for up to 20% of Reddit users’ daily activity, according to Business Insider last week.
Fintech startup SoFi started with alternative lending in 2011, but now provides much more financial products and services. Retail investors from Reddit consider SoFi Technologies to be the next Square or PayPal and are worried about pressure on the shares of the newly public company. It is created, in particular, by early investors – owners of large stakes in a startup. Now that, a month after SoFi Technologies went public, the restrictions on the sale of shares are gradually being lifted for the top managers of the combined company, they have begun to leave the startup, taking profits. In addition, research firm Fintel notes a relatively high 21% short-selling ratio for SoFi Technologies, which indicates that someone is trying to capitalize on the falling stock. “Sofa Investors” urge long-term investment in SoFi Technologies and not be led by speculators who are short.
How did SoFi begin
The replenishment of the SoFi portfolio with new products occurred under the second CEO, Anthony Noto, who, as is most often the case, was not among the founders of the startup. SoFi is short for Social Finance, social finance. The startup was founded in 2011 by four students at Stanford Graduate School of Business. One of them – Mike Cagney then became its CEO, before he served as vice president of Wells Fargo, which is part of the so-called big four US banks.
With the help of SoFi, Stanford Business School alumni got on their feet to give education loans to alma mater students. SoFi’s terms were more profitable for the lender than a bank deposit, and for students such a loan was cheaper than any other. By the way, graduates who were directly financially interested in a successful career and the well-being of debtors were more willing to become their mentors and help them find work.
SoFi launched its first program at Stanford Graduate School of Business, 40 alumni donated about $ 2 million, which was distributed to about a hundred students.
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