Company Review: VenmoMax Warner

Products● “It’s like Facebook and PayPal combined—

only a better version of both of those things,” I say. “Just download it.”

● Smart phone wallet app.● Social Media integration.

Products● Pay via bank account, debit card, credit

card.○ credit card: 3% charge

● “Cash-out” at any time with your bank.● “Trusted” friends, charge/pay at any time.

Products

Company History● Iqram Magdon-Ismail (29) and Andrew

Kortina (30) co-founders.● Released Beta in 2009, public in 2012.● Braintree purchased in for $26.2 Mil. within 5

months.● Braintree: Uber, Airbnb, and LivingSocial.

Financials● Financials not released by Braintree.● $10 million in payments per month.● Growing at 30% per month, 15% user

increase/mo.● Braintree: $8 Bil. payments annually, $2 Bil.

mobile.

What’s Hot?● Social aspect - share with friends.● “News Feed” of transactions.● Building up Venmo money.● Fast, all transactions done overnight.

Competition● Square, PayPal Here, Intuit GoPayement.

○ charge 2.75% - 3.0%● Google Wallet integration with Gmail.

○ send/receive money through emails○ no app yet

● Person to Person vs. Customer to Business.

Secret Sauce● Integration with facebook or email book.● Simplicity of transactions - 4 clicks.● Social media feel - “free money”.● Free to use.● Available with all banks, overnight

transactions.

My Prediction● Huge success!● Plans to pair up with Square or LevelUp to

go B to B and/or Consumer to Business.● Venmo Touch - integration in other apps.● Venmo API● Mobile Payment market to be over $90 bil.

by 2017.

Questions?

Security● 256-bit encrypted connections.

○ same method as government information● Transactions protected by Federal Deposit

Insurance Corporation.● Pass-code to open app.● Develops graph of patterns in who you’re

friends with and who you pay.

Business Model● “It’s an anomaly that PayPal and others tried

to make money from the consumers,” explained Bill Ready, CEO of Braintree. “We make money when merchants use us to accept payment but we don’t charge consumers for that.”

● Currently only makes money on Business.

Sources● http://www.slate.

com/articles/technology/future_tense/2013/08/venmo_review_the_wallet_app_is_light_years_ahead_of_paypal.html

● http://www.forbes.com/sites/natalierobehmed/2013/07/02/venmo-the-future-of-payments-for-you-and-your-company/

● http://bits.blogs.nytimes.com/2012/03/20/after-2-years-in-beta-venmo-opens-payment-service-to-public/?_r=1

● http://mashable.com/2012/09/19/venmo-mobile-payments/● http://tech.fortune.cnn.com/2011/04/25/venmo-fighting-the-good-fight-

against-the-online-payment-giants/● http://tech.fortune.cnn.com/2011/04/25/venmo-fighting-the-good-fight-

against-the-online-payment-giants/