Assertion Not checkable as stated
Frohwein: Kabbage loans average a mid-30s APR
“We average about a mid thirties APR”
Assertion Not checkable as stated
Frohwein: Every $1B Kabbage lends creates 20,000 jobs
“We've done studies that really show that, you know, the capital that we're putting out really produces a lot of jobs, you know, about 20,000 jobs for every billion dollars that's put out.”
Insight
Frohwein: Fintech underwriters must retain credit risk to align incentives
“I think it's important to have real alignment between those who are calling the risk, which is us, right? We're trying to figure out whether there's, you know, a, you know, whether a customer's credit, whether you're not, and those that actually hold the, you …”
Prediction Not publicly verifiable
Frohwein: Kabbage will break $300M in 2018 revenue
“We do. So, yeah, so we will.”
Disclosure
Frohwein: Kabbage Explores Blockchain to Hedge Capital Permanence Risks
“The way I think about blockchain, and frankly, crypto, if you will, that sits on top of blockchain, is a way to maybe either hedge against some of the permanence issues that, that exist in the capital markets for companies like Cabbage or a way to so either a …”
Assertion Not checkable as stated
Frohwein: SoftBank has no access to Kabbage's underwriting data
“No, no, they are strictly a shareholder in the company. It's not a, you know, it's not a relationship where we're sharing data or anything along those lines.”
Assertion Not checkable as stated
Frohwein: Kabbage is approaching $4 billion in capital delivered
“We're approaching four billion dollars in capital delivered.”
Disclosure
Frohwein: Kabbage assumes the risk of loss on all its loans
“First of all, we take the risk of loss on all the loans that we make.”
Disclosure
Frohwein: Kabbage raised a $250 million round from SoftBank
“We just raised a two hundred fifty million dollar round from SoftBank corporation.”
Assertion Supported
Frohwein: Kabbage lent $1.5 billion to small businesses in 2017
“We put out a billion and a half dollars last year,”
Prediction Didn’t hold up
Frohwein: Kabbage will lend nearly $2.5B in 2018
“We're set to put up nearly two and a half billion this year.”
Assertion Supported
Frohwein: Kabbage licenses software to ING and Santander across Europe
“The deals that we have, for example, with ING, and we're launched with them in Spain, Italy, and France. We're launched with Santander as a, as an example in the UK.”
Disclosure
Frohwein: Kabbage entering deposit and payments within 9 to 12 months
“Which means we will be going into both deposit and payments over the next nine to 12 months.”
Disclosure
Kabbage pulls SMB underwriting data directly from banking, accounting, and shipping
“What we do is allow a small business to connect all key data sources that relate to how they run their business. So it can be their banking account. It can be processing. So quick books, chase credit card, shipping, social accounting, web analytics.”
Prediction Didn’t hold up
Frohwein: Kabbage will exit via IPO in at least a couple of years
“You know, I definitely think that's the exit. It's going to be a couple of years at least, probably a couple of years for us.”
Assertion Supported
Frohwein: Kabbage licenses tech to Santander, ING, and Scotiabank globally
“We also license our technology to banks globally and we're launched right now in partnership with Santander, ING, and Scotiabank in Spain, UK, Canada, Mexico”
Assertion Not checkable as stated
Frohwein: Kabbage has lent to nearly 120,000 US businesses
“We have a 115,000 approaching a 120,000 small businesses in the U S that have taken a loan.”
Disclosure
Frohwein: Kabbage has raised close to $500 million in equity
“We have raised close to five hundred million dollars.”
Disclosure
Frohwein: Kabbage partners with Celtic Bank to originate and acquire loans
“We're partnering with a bank, Celtic bank which is a bank out of Utah, and they're actually the ones who originate the loan, which we then acquire the receivables of the, of that loan immediately.”
Assertion Not checkable as stated
Frohwein: Kabbage has about $650 million in its current loan book
“We have about six hundred and fifty million in a, in sort of a current in sort of a current book.”
Assertion Not checkable as stated
Frohwein: Kabbage borrowers average $25k lines, drawing $6-7k repeatedly
“The average line size, which means, you know, a credit line you have is 25,000 dollars. The average loans that customers take are only six or 7000 on average, but they take loans six or seven times a year.”
Opinion
Frohwein: Atlanta tech ecosystem is currently experiencing its best days
“I actually think our best days are happening in sort of consecutive fashion right now. So I'm excited about what's going on with ATV, Atlanta Tech Village, David Cummings, a bunch of other incubators, and we've also had a lot of great wins, Ionic Security, Car…”
Assertion Not checkable as stated
Frohwein: Kabbage's top-line revenue was just $12,000 in 2011
“So this is when we were just starting out and our top line was a whopping total of 12,000 dollars. Nathan Latka: What year was that? Rob Frohwein: Geez, that was, you know, 2011.”
Assertion Not checkable as stated
Frohwein: Kabbage employs 375 people as of late 2017
“Right now we have 375 people.”
