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GSV Capital is the first publicly traded security giving growth equity investors access to the world's most dynamic, VC-backed private companies.

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NASDAQ: GSVC
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Why We Like

$14.0 million NAV|6.3% of GSVC

Founded

2009

Capital Raised

$71.2 million

Investors

GSV Capital along with Kapor Capital, Khosla Ventures, and Maveron, among others

GSV Investment Theme

  • Cloud/Big Data
  • Marketplaces
  • Sustainability
  • Education

Overview

PayNearMe is a next generation electronic cash payment platform. It serves the millions of underbanked and unbanked residents of the United States, allowing them to pay auto, rent, and utilities bills through retail locations. The company currently has relationships with 7-Eleven, Family Dollar, and Ace Hardware stores, but is continuing to aggressively expand their retail footprint and the breadth of industries that its payment system covers.

4Ps
Why We Like It: The Four Ps

Why We Like PayNearMe

PayNearMe is a leading cash-based payments platform, allowing consumers to pay their rent, utility bills and loans, buy tickets online and more. Through an existing presence in thousands of Family Dollar, 7-Eleven, and ACE Cash Express stores, PayNearMe services the millions of underbanked and unbanked Americans who are virtually locked out of the digital economy.

People

PayNearMe is led by Chief Executive Officer Danny Shader, the former CEO of Jasper Wireless and the former President and CEO of Good Technology, which was acquired by Motorola in 2007. Shader also spent time as a Vice President and General Manager at amazon.com where he gained exposure to the extensive challenges facing the underbanked in commerce. Acting Chairman Bill Campbell, often recognized as the “Coach of Silicon Valley,” served as a director at Apple and is currently a strategic advisor at Google. He is also the Chairman at Intuit. Other investors in PayNearMe include August Capital, FLOODGATE, Kapor Capital, Khosla Ventures, Maveron, and True Ventures.

Product

PayNearMe is a cash transaction network that lets consumers use cash to repay loans, pay rent, make online purchases, and much more. Customers can make payments 24/7 in their neighborhood in less than 60 seconds at any of the thousands of participating 7-Eleven, Family Dollar, and ACE Cash Express stores throughout the U.S. Businesses that partner with PayNearMe also receive a benefit by making it easier for their customers who prefer cash to pay, increasing the likelihood that customers will make payments and complete purchases.

Potential

In the United States there is over $400 billion of currency in circulation with $1 trillion in cash transactions taking place annually. PayNearMe is focused on capitalizing on the velocity of money by the underbanked and unbanked, allowing them to pay in cash for bills or other purchases that would normally require a credit card or bank account information. As these demographics continue to grow, PayNearMe has the potential to solidify itself as the easiest way to pay with cash.

Megatrends

Globalization; Network Effects; Knowledge

How Big Can This Be?

PayNearMe has the potential to dramatically disrupt the traditional payments sector in the United States by serving the over 100 million unbanked and underbanked residents.

Predictability

PayNearMe’s business is largely reliant on having a large physical footprint in high traffic chain retailers nationwide. Thus far, the company has established meaningful relationships with thousands of 7-Eleven, Ace Cash Hardware, and Family Dollar stores nationwide. Future growth, is in part, is reliant on relationship expansion. PayNearMe has created a product that is both user friendly to a diverse number of socioeconomic groups and highly defensible from a technology perspective. Given the complex technologies inherently located on the platform’s backend, it would be costly to recreate their service in any similar capacity by a competitor.

Risks

The company works in a highly regulated and constantly changing field. Although, PayNearMe does not have any existing direct competitors, players like MoneyGram or Western Union could make the underbanked and unbanked an area of focus in the future.

GSVC percentage figures are based upon the fair value of each holding as of the quarter ended September 30, 2016, or the cost basis of the holding (exclusive of transaction costs) if the investment closed subsequent to September 30, 2016. In either case, these values are divided by the fair value of total portfolio investments of GSV Capital as of September 30, 2016.

GSV stands forGlobal Silicon Valley
Learn more at GSV.com