Upstart - Pioneering AI Credit Underwriting (Pt.2)
Summary
* Upstart’s model improvements post-Model 18 have unlocked broader bank approvals and lowered default rates.
* Conversion rates have nearly doubled in five quarters, validating model efficiency and product-market fit.
* Upstart’s improved outcomes have enabled it to negotiate higher take rates, supporting better unit economics.
* Real-time automation is reducing CAC and enabling margin expansion as volume scales.
* Despite negative FCF, a 10.9x EV/GP and DCF-supported upside sugges
