Chime’s Rocky Road to IPO: From 100 VC Rejections to $14.5B Valuation
Fintech startup Chime overcame near-death experiences to achieve a successful IPO, highlighting resilience and investor belief. The neobank, which almost ran out of money in 2016 after being rejected by approximately 100 venture capital firms, recently went public, initially valued at $14.5 billion.
Chime’s IPO saw it raise $864 million, pricing shares at $27, exceeding the initial range of $24 to $26. This gave the company a starting market capitalization of around $9.8 billion. Shares opened at $42, pushing its valuation to $14.5 billion by midday, before closing the day at $37, setting its market cap to approximately $12 billion, according to Yahoo Finance.
The IPO’s success is attributed to Chime’s strong financial performance. The company reported $1.3 billion in revenue in 2023 and $1.7 billion in 2024, with losses significantly reduced from $203 million to $25 million. In the first quarter of 2025, Chime achieved profitability with $13 million in net income on $519 million in revenue, though it anticipates potential fluctuations due to growth-related expenses. [1]
Despite its current success, Chime faced significant challenges. These include layoffs in 2022 and a regulatory dispute in 2021 that restricted its use of the term “bank.”
Co-founder and original CTO Ryan King revealed that in early 2016, Chime struggled to secure an extension to its Series A funding. The company pitched over 100 investors and received no offers, nearing financial collapse. “In the beginning of 2016, specifically, we were trying to raise an extension to our Series A and we pitched 100 investors, maybe more, and got 100 no’s,” King said.
Chime’s mission, focused on providing a free online banking experience for the working class funded by interchange fees, faced skepticism from VCs concerned about the heavily regulated industry and the company’s growth at the time. Chime doesn’t charge overdraft fees and offers credit-building tools.
Lauren Kolodny, then a partner at Aspect Ventures (now co-founder of Acrew Capital), played a crucial role in Chime’s survival by leading a $9 million extension. [2] Kolodny’s investment at 26 cents per share underscores the significant return she has realized through Chime’s subsequent growth and IPO.
During Chime’s IPO roadshow, a security guard recognized co-founder Chris Britt’s Chime card, expressing his satisfaction as a customer, highlighting the company’s impact on everyday users.
