Latest news with #growthinvestment
Daily Mail
28-05-2025
- Business
- Daily Mail
Why is Meta a good investment? A growth investor replies
As with any investment, capital is at risk. Meta is already one of the world's biggest companies, and its share price has risen dramatically in recent years. So, can it still be considered a good growth investment? This is Money replies: Meta is the group behind some of the world's most famous digital names, Facebook, WhatsApp and Instagram. It is also one of the most successful and largest companies in the world. We spoke to Jon Henry, Investment Specialist, at Monks Investment Trust, which holds Meta as one of its top ten holdings to ask him why it can still be considered a good growth investment. But first a bit of background. Facebook founder and CEO Mark Zuckerberg changed his company's name to Meta in October 2021 and since then its share price has almost doubled from $323 to $640 (on 16 May 2025), with the business now having a huge $1.6trillion market cap. Facebook and then Meta's growth has been astonishing over the company's relatively short life - the initial site was only started at Harvard University in 2004 - and long-term holders of its shares will have been richly rewarded. But with Meta now so big, and so many people and businesses all around the world already using its social media apps, services and advertising, it is reasonable to ask how it can still be a growth investment, with its earnings and shares continuing to rise. Monks is an investment trust managed by Baillie Gifford, which aims to deliver long-term capital growth for its investors, by applying a patient approach to holding a diversified range of global growth stocks. Jon Henry, of Monks Investment Trust, replies: Under Mark Zuckerberg's leadership, Meta has proven itself innovative, flexible and willing to invest significantly in growth. Indeed, Meta has invested billions in its AI capabilities, amid scepticism from investors. In early 2022, Meta's shares traded on a low teen multiple of earnings (a company's total valuation expressed as a multiple of its annual profits). We added for Monks during this period - but this has proven to be the bedrock of its subsequent success, and its share price has tripled over the past three years. Meta now offers a market-leading advertising proposition with unparalleled reach across 3.6 billion monthly active users—approaching half of humanity. It has developed a 'core AI' capability that better targets merchant advertising to users on its platforms. This has driven increasing engagement and higher conversion rates for merchants, boosting Meta's pricing power and profit growth. Meta's latest results suggest that its growth engine remains in rude health. It delivered impressive revenue growth of 19 per cent year-on-year, while operating margins have expanded considerably (now 41 per cent, up more than 3 per cent year-on-year, having been 28 per cent in 2022). So, what would a growth fund manager who decided to hold Meta shares look for in the company to back up their investment decision? Our investment case centres on strengthening evidence that Meta will remain a critical communication infrastructure in the Western world. We are looking for Meta to leverage its vast scale and financial firepower to grow its reach and targeting capabilities over time. This includes growing its nascent Threads platform, which now has around 300 million users and leveraging AI across its advertising estate. For example, WhatsApp has 3 billion active users but contributes a small proportion of Meta's revenues today. A combination of growing scale, improved engagement and higher revenues per customer should support Meta's growth beyond its circa 20 per cent market share of global digital advertising (the global market, circa $1trn growing at 9 per cent p.a.). Another leg of Meta's growth story will be its 'generative AI' capabilities. 'Meta AI', an AI agent embedded into its family of apps, could deliver growing utility and revenue potential. Meta continues to invest aggressively, indicating that it plans to spend $64-$72bn on AI this year alone. These services will allow AI agents to interact with communities, create engaging and personalised adverts, and generate organic content. While monetisation is not yet on the agenda, these services could become extremely valuable and are not recognised in the valuation of the shares today, which are currently trading on a mid-twenties multiple of earnings. > Learn more about Monks and long-term investing in a changing world Important information This article does not constitute, and is not subject to the protections afforded to, independent research. Baillie Gifford and its staff may have dealt in the investments concerned. The views expressed are not statements of fact and should not be considered as advice or a recommendation to buy, sell or hold a particular investment. Baillie Gifford & Co and Baillie Gifford & Co Limited are authorised and regulated by the Financial Conduct Authority (FCA). Baillie Gifford & Co and Baillie Gifford & Co Limited are authorised and regulated by the Financial Conduct Authority (FCA). The investment trusts managed by Baillie Gifford & Co Limited are listed on the London Stock Exchange and are not authorised or regulated by the FCA.
Finextra
07-05-2025
- Business
- Finextra
Finom secures $105 million growth investment from General Catalyst
Finom, the Amsterdam-based financial management platform for SMEs and freelancers, has secured a $105 million growth investment from the Customer Value Fund of long-time investor General Catalyst. 0 This investment follows Finom's €50 million ($54 million) Series B in February 2024, co-led by General Catalyst and Northzone, bringing its total funding to nearly €190 million ($200 million) since launch. Finom currently serves over 100,000 businesses across Germany, France, Spain, the Netherlands, and Italy and will apply the new funding line to expand to other EU markets. Unlike traditional growth capital, General Catalyst's investment allows Finom to finance their investment on acquiring customers without diluting shareholders or taking on additional risk, as GC assumes the downside exposure. In return, GC is entitled only to the customer value created by that spend, and GC's entitlement is capped at a fixed amount. Kos Stiskin, Finom's chairman and co-founder, says: "GC's Customer Value Fund is not just about injecting capital - it's about injecting expertise and alignment. They understand our business deeply and are funding growth in a way that preserves our equity and autonomy. With GC's support, we can aggressively expand across Europe, knowing we have a partner who shares our vision and is truly invested in our success." Since its launch in 2020, Finom has expanded across key European markets, introducing local Iban accounts in Germany, France, Italy and Spain. The Amsterdam-based company doubled revenue in 2024 and expects to sustain that pace in 2025, despite a softer macroeconomic environment.
TechCrunch
06-05-2025
- Business
- TechCrunch
Finom, a challenger bank aimed at SMBs, lands $105M in growth funding from General Catalyst
Finom, an Amsterdam-based digital bank for small- and medium-sized businesses, has raised €92.7 million (roughly $105 million) in a growth investment from General Catalyst's Customer Value Fund, the company tells TechCrunch exclusively. The capital infusion 'will be used exclusively and only for growth' and not for operational expenses or product development, Kos Stiskin, Finom's chairman and co-founder, told TechCrunch. He described it as a non-traditional funding round in which General Catalyst doesn't take any equity. '[O]ur core operations are generating positive cash flow, and all new investments and funding go directly toward attracting new clients,' Stiskin said. Finom is primarily in the banking business, but this year, the company expanded its offerings beyond digital banking services. In February, Finom unveiled what Stiskin described as an 'autonomous AI accounting agent' for entrepreneurs and freelancers in Europe. And in March, the startup expanded into direct lending, which incorporates an AI-powered scoring engine. Finom's credit offering, available in the Netherlands, will be expanded across Europe by year's end, Stiskin added. Today, Finom counts over 100,000 businesses across Germany, France, Spain, the Netherlands, and Italy as customers, reporting positive unit economics in all markets. Its revenue model is primarily subscription-based. Finom also generates revenue through transaction fees for certain services and offers a competitive cashback program. The recent expansion into lending also opened a new revenue stream through interest on credit lines. Image Credits:Finom Stiskin declined to reveal hard revenue figures, but he told TechCrunch that Finom doubled its annual recurring revenue in 2024 and that the company is 'EBITDAM (earnings before interest, taxes, depreciation, amortization, and marketing) profitable.' Techcrunch event Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you've built — without the big spend. Available through May 9 or while tables last. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you've built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | BOOK NOW In an interview, Stiskin described Finom's closest competitor as Qonto, a Paris-based challenger bank that in January 2022 announced a massive €486 million ($548 million) Series D funding round. But Stiskin believes that Finom has a 'stronger localization strategy and more comprehensive product suite.' Presently, Finom has 505 employees, up 31.5% compared to last year. Last September, the company named Alessandro Camilotti, former head of finance and analytics EU at Klarna, as its CFO. In total, Finom has raised nearly €190 million (roughly $214 million) since its inception in 2020. In February 2024, Finom announced it had raised €50 million (roughly $56 million) in a Series B equity round of funding co-led by General Catalyst and Northzone. The startup has declined to reveal its valuation. According to PitchBook, Finom was valued at $150.7 million post-money in November 2021 after a €30 million (roughly $33.8 million) seed funding round from VCs Target Global, Tal Ventures, and General Catalyst. Zeynep Yavuz, partner at General Catalyst, believes that Finom has 'shown strong execution in a market that is still deeply underpenetrated.' She also thinks its modular infrastructure gives the company the ability 'to scale efficiently' across geographies, 'leveraging shared capabilities while localizing where needed.' 'We see Finom's proprietary anti-money laundering and know-your-customer engine as a standout advantage — not just for compliance, but for customer experience,' Yavuz said.
