Nubank, the world's largest digital-only bank backed by Warren Buffett, goes public.

Members of Moonshot Circle have the opportunity to participate in the last spurt of private-stage growth of this company, currently valued north of USD 30 billion.

An IPO on Nasdaq is reportedly happening in December 2021 and is expected to skyrocket the company's value to over USD 100 billion, benefitting the investors proportionally. Moonshot's conservative estimate indicates that the investors could receive 1.2 - 2x capital growth within 4-6 months.

The banks handling the share sale in the planned IPO include Morgan Stanley, Goldman Sachs Group, Citigroup, and UBS Group.

About Nubank

Nubank has been co-founded by Cristina Junqueira, a banking professional, and David Velez, an ex-partner of Sequoia Fund, arguably the world's most prominent VC firm which invested in the early-stage Apple, Google, Paypal, and many more.

Since its foundation in 2013, Nubank has acquired over 40 million clients all over the world, which is about 5 times Switzerland's population. This has been an explosive growth, up from 1.3 million clients reported at the end of 2016. All of the above happened completely online, without opening a single bank branch, which creates tremendous cost-efficiency - specifically, savings on rent, equipment, employment, and administrative costs.

 

Nubank co-founders, David Velez and Cristina Junqueira. Source: Bloomberg

The company is backed by Warren Buffett, one of the most successful investors of all time. He's known for his conservative long-term approach he calls Value Investing. Buffett runs Berkshire Hathaway, which owns more than 60 companies, and his net worth exceeds USD 100 billion, on top of the USD 45 billion he already donated to charities.

Key facts

Estimated capital growth: 1.2x - 2x in 4-6 months
Reported IPO date: December 2021
Valuation: over USD 30 billion (Series G)
Founded: 2013
Client base: over 40 million, achieved with zero marketing
Employees: over 3000
IPO shares sale handled by: Morgan Stanley, Goldman Sachs, Citigroup, UBS

 

Warren Buffett, one of the large Nubank pre-IPO investors

Via Moonshot, investors can gain exposure to Nubank shares and benefit from the pre-IPO phase growth.

The capital growth is to be realized in the IPO event when the Nubank shares bought on the pre-IPO stage are going to be issued to the public market.

Minimum investment: CHF 50'000

Summary

There are not many industries whose digitalization potential has not yet been fully realized.

A far reverberation of the series of innovations that exploded with the invention of the Internet, the digitalization of banks represents one of the last opportunities to participate in the disruption of traditional industries.

The biggest B2C industries such as media, entertainment, telecom, and retail already lived through the disruption over 20 years ago. The old players started their steady decline, giving way to technology titans like Facebook, Amazon, Netflix, and Google.

Consumer financial services had evaded the technology revolution until recently, protected by government regulations and compliance requirements, not in line with digital technology.

But now the dismantlement of rigid banking structures is in full swing, as attested by hundreds of millions of digital-only bank users all around the world, prominent investors such as Warren Buffett, and an infinite amount of innovations ranging from cryptocurrencies to AI-driven wealth advisors.

We are ending our newsletter with his quote: "A great investment opportunity occurs when a marvelous business encounters a one-time huge, but solvable problem."

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