An opportunity to own Social Finance, Inc. (“SoFi”), the most profitable fintech company in the marketplace and the largest provider of student loan refinancing Over 500K members as of April 2018 - added 220K member since Q1 2017.https://www.sofi.com/
Up to US$ 5.2M in LP units of InvestX Series 29 (US $1.00/Unit)
US $20,000 (open to US and Canadian Accredited Investors)
SoFi began its business recognizing a large inefficiency in the $1.3 trillion dollar student loan market. The government guaranteed loans to all students regardless of credit risk and where they paid a similar interest rate. However if the students were segmented, SoFi could determine who the highest credit rated students were and give them access to a lower loan rate. They called this group HENRY - High earners not rich yet. By targeting students from top schools, graduate programs, MBA, and using artificial intelligence (AI) they could change the risk paradigm and create significant margin. For illustrative purposes, all students borrowed at a standard rate of 6-8%, SoFI picks the top credit rated sub group, lends to them at 4-6% (paying back the higher rate student loan and lowering their borrowing costs) and borrows institutionally at 1-3% creating the margin for SoFI.
By targeting HENRY, they are acquiring members (borrowers) at an early age which gives them the ability to provide other credit and wealth management products throughout their life. In addition by focusing on millennials who are high technology users and focusing their experience online has result in a Net Promoter Score of 90 which ranks SoFi as one of the highest in the world for major brands. The company puts on community events for members and helps drive education and activities around the millennials life and career.
This has helped to significantly lower customer acquisition costs. SoFi has expanded to offer additional credit and wealth management products to its 500,000 members.