While Robinhood’s massive Series G round may have secured the most headlines last week, InsurTech and PropTech ventures bagged the most capital injections.
Robinhood dominated the headlines last week after securing a $200m investment round and a $11.2bn valuation. This means that it is now part of an exclusive club of FinTech startups that can claim to be decacorns. Some of the other members of the club are Brazilian challenger bank NuBank and payment companies Stripe and Ripple.
The round was particularly impressive given the smattering of bad press that Robinhood has suffered over the past year. The headlines it would probably that the public forgot includes service outages, critique of how well it communicates the risks of using its platform and cybersecurity concerns. Despite this, the company managed to bag an impressive round last week and is now set on boosting its core product and its user experience.
However, while Robinhood may have stolen most of the thunder last week, InsurTech enterprises netted most of the rounds last week. Of the 29 FinTech rounds FinTech Global reported on last week, four – Huddle, Claimsforce, ELEMENT and Waterdrop – were InsurTech ventures.
In fact, Waterdrop secured an even bigger round than Robinhood, having added $230m to its coffers.
The number of InsurTech deals can be seen in the light of the coronavirus pandemic. As we have reported in the past, several market stakeholders have said that Covid-19 has highlighted the limitations of insurers’ old systems. As a result, they could be more prone to invest in and to partner with InsurTech startups, meaning these ventures could prove to be among the big winners of the pandemic.
That being as it may be, InsurTech investments around the world declined in the first half of 2020, according to FinTech Global’s research. Whole funding into this space jumped from $1.68bn in 2016 to $5.96bn in 2019, the sector only attracted $2.01bn in the first six months of this year.
Another interesting trend to pay attention to in the week that passed is that several PropTech ventures raised capital.
That is particularly interesting given the massive drop in investment recorded in this segment of the FinTech industry over the first six months of 2020. Between 2015 and 2019, the global investment into the real estate segment of the FinTech industry jumped from $1.3bn to $13.9bn, according to FinTech Global’s research. However, that figure dropped to $4.0bn in the first six months of 2020. That being said, is still more money raised in six months than in the entirety of 2018 when the industry was injected with $2.9bn by investors in total.
Apart from that, we noticed the regular smattering of cybersecurity startups raising capital that we have gotten accustomed to in these roundups since the outbreak of Covid-19 emboldened many cyber criminals. In response, enterprises around the world have upped their investment into their digital defences as IT professionals have pushed cybersecurity to the top of their priorities, which could explain why many cybersecurity companies have enjoyed reasonably big funding rounds.
In the first quarter of 2020, the cybersecurity sector raised $1.5bn, according to FinTech Global’s research. That’s more than a quarter of the $4.7bn raised through the entirety of 2020. That being said, many of those rounds had been in the pipeline before the health crisis broke out.
With that in mind, let’s take a closer look at the rounds raised in the past seven days.
Waterdrop said to raise $230m in its latest capital injection
Waterdrop, a China-based online insurance platform, has reportedly netted $230m in a new funding round. Insurer Swiss Re led the round. Tencent, IDG Capital and Wisdom Choice Global Fund also contributed to the raise. Waterdrop offers three core products: mutual insurance, commercial insurance and crowdfunding for illness. Its services take place through a WeChat account to ease communications, with users able to post crowdfunding campaigns, buy insurance policies or make claims.
Robinhood secures $200m and joins decacorn club
Stocktrading platform Robinhood secured a $200m Series G round from D1 Capital Partners and a $11.2bn valuation last week. The decacorn will use the fresh capital injection to boost core product and improve its customer experience. One way it will improve its capabilities in meeting customer needs will be through the hiring of hundreds of new registered financial services representatives in Texas and Arizona.
India-based U GRO CAPITAL said to raise $53.4m in a funding round
India-based U GRO CAPITAL has secured $53.4m in a mixture of non-convertible debentures (NCDs), term loans and commercial papers. These funds were supplied by several unnamed private and public banks.
BlockFi closes its $50m funding round in 12 months
Cryptocurrency wealth management platform BlockFi announced the closure of a $50m Series C round. Morgan Creek Digital led the round that also saw backing from Valar Ventures, CMT Digital, Castle Island Ventures, Winklevoss Capital, SCB 10X, Avon Ventures, Purple Arch Ventures, Kenetic Capital, HashKey, Michael Antonov, NBA player Matthew Dellavedova and endowments from two universities. This marks the FinTech’s third fundraise in the past 12 months, having nabbed $30m for its Series B in February 2020 and $18.3m for its Series A in 2019.
Anti-fraud company SpyCloud bags $30m in its Series C round
Anti-fraud company SpyCloud has bagged $30m in its Series C round, which was led by Centana Growth Partners. Contributions also came from SpyCloud’s existing backers M12, Altos Ventures, Silverton Partners, and March Capital Partners. Having closed the round, the company is planning on expanding its product and engineering teams and create new products.
Ethical hacking platform Cobalt bags $29m
Danish cybersecurity startup Cobalt has secured $29m in a Series B round to fund the further expansion of its services. The company, now headquartered in San Francisco, connects human penetration testers, so-called ethical hackers, with businesses looking to test their software.
Highland Europe led the round that brought the total amount of funding injected into Coboalt to $37m.
Lana collects $12m in its Series A
Lana, a personal finance platform, has reportedly netted $12m in its Series A round, as it looks to better serve consumers in Latin America. The investment was led by Base10 Ventures, with contributions also coming from Cabify and Cathay Innovation. Having closed the round, the company plans to hire more staff and expand across Latin America, the article stated.
ELEMENT nets an additional €10m for its Series A round
InsurTech startup ELEMENT has bagged an additional €10m for its Series A round, which it initially closed back in 2018. The company previously ended its Series A investment round in 2018, netting €23m from SBI Investment, SBI Insurance Group, Engel & Völkers Capital, and Alma Mundi Ventures. This fresh Series A capital was supplied by SFV GB, Sony Financial Ventures, Global Brain and other existing backers such as finleap, Versorgungswerk Zahnaerztekammer Berlin and SBI Investment.
Chetwood Financial said to raise £10m in a new funding round
Wales-based challenger bank Chetwood Financial has reportedly raised £10m in funding from hedge fund Elliott. This is not the first investment from Elliott, which previously deployed £50m in equity and £100m in debt into Chetwood back in 2018, according to a report from FinTech Ranking.
FPL Technologies said to raise $10m for its Series A round
India-based FPL Technologies has reportedly bagged $10m in its Series A funding round to support the wider distribution of its credit card. Matrix Partners India, Sequoia Capital India, and Hummingbird Ventures backed the round. FPL Technologies plans to use the money to distribute its credit card to more customers and expand its product offering. A potential feature could be a subscription tracking tool as well as ways to save money.
Cyware secures $10m in its Series A round to support product enhancements
Cyware, which helps businesses to create a centre for cybersecurity operations, has bagged $10m in its Series A round. The capital injection was led by Prelude Fund and Tanium, with contributions also coming from Cyware’s seed investors, Emerald Development Managers and Great Road Holdings. Cyware will use the money to fund the expansion of its sales and marketing teams, enhance customer success and further the case innovation and product enhancements for its platform.
Indonesia-based BukuKas said to secure $9m in its Series A round
Cloud accounting software BukuKas has reportedly bagged $9m in its Series A round to increase its presence in Indonesia. The round was supported by Sequoia Capital India, Saison Capital, Speedinvest, S7V, January Capital and Cambium Grove Capital.
Claimsforce said to raise €7m in its Series A round as it looks to bolster its team
Claimsforce has reportedly raised €7m in its Series A round, which will help it increase its team globally. The round was led by Notion Capital, with support also coming from Fly Ventures, Point Nine and La Famiglia. With the capital injection, the InsurTech plans to increase its current capabilities, increase its team around the world and increase the number of data points it uses to assess claims, the article states.
Elisity launches out of stealth after closing $7.5m seed round
Zero-trust networking and access software provider Elisity has launched out of stealth after closing a $7.5m seed round. The investment was led by Atlantic Bridge. The cybersecurity company will use the money to scale its engineering, sales and marketing teams.
CredoLab bags $7m in Series A round led by GBG
Digital risk company CredoLab has secured $7m in a Series A round led by global identity data intelligence company GBG.
Lending platform SuperSim said to raise $5.6m in funding
Brazil-based SuperSim has reportedly netted $5.6m in a debt financing round, which will help more consumers in Latin America access funding. Despite having just secured these funds, the FinTech is looking to raise a Series A by the end of the year.
Banking and payment software startup Moov nets $5.5m in its seed round
Moov, the banking and payment software provider, has secured $5.5m for its seed round as it looks to increase its user base and product roadmap. The investment was led by Bain Capital, with commitments also coming from Uncorrelated, Gradient Ventures, Commerce Ventures, Canapi, RRE Ventures, Abstract Ventures and Veridian Credit Union.
Funding Xchange awarded £5m by BCR
Loan platform Funding Xchange has been awarded £5m by BCR as part of the Pool E allocation of the RBS Remedies fund. Funding Xchange applied for the funding together with challenger bank Shawbrook Bank, the National Association of Commercial Finance Brokers (NACFB) and small business advice platform Enterprise Nation.
PropTech platform EasyKnock closes $5m Series B round
EasyKnock, an institutionalised residential sale-leaseback company, has scored $5m in its Series B from Viola FinTech. The PropTech supplies homeowners to access value in their home by selling the home without having to move out. The MoveAbility solution is aimed at those looking to move home in the near future, letting them sell without rushing the move. Its services are available in all 50 US states.
Neat adds $4m to its Series A round
Hong Kong-based FinTech Neat has topped up its Series A round with a $4m extension, bringing the total raised in the round to $15m. Neat originally raised $11m in April. This brings the total raised by Neat to $20.5m. Having backed the raise in April, MassMutual Ventures, Pacific Century Group, Linear Capital and Robby Hilkowitz returned to inject more cash into the extension round. They were joined by new investor Vectr Fintech.
Personal finance app Nude reaches £3.5m crowdfunding target
Nude, the financial advice service for first-time homebuyers, has reached its crowdfunding campaign target, raising £3.5m on the Seedrs platform. The FinTech, which raised a little over its initial target, pulled in the capital from 806 investors. Investors to the round will receive a convertible which entitles them to a 30% valuation discount during subsequent funding rounds.
InsurTech startup Huddle said to raise $3.1m in its funding round
Online insurance platform Huddle has reportedly netted $3.1m in its funding round, which was led by AirTree Ventures. Other contributions to the round came from previous Huddle backer Hollard Insurance. With the capital injection, the company plans to expand and grow its platform, as well as enter new markets, the article said. Countries on its target list are New Zealand, the UK and other European nations.
PropTech platform Offr said to raise £2.7m in its seed round
PropTech platform Offr has reportedly nabbed £2.7m in its seed round, which will support its international expansion. Barclays acted as the lead investor, with additional commitments coming from Delta Partners on behalf of Bank of Ireland, AIB, Enterprise Ireland, The European Investment Fund and Frontline Ventures. Offr will use the money to fund its international expansion and to further develop its transaction infrastructure.
Previse secures £2.5m grant from BCR
Digital instant invoice payment company Previse has received a £2.5m grant from Banking Competition Remedies’ (BCR) Capability and Innovation Fund. With this capital, the company will further the development of its payment technology and accelerate the market adoption.
Codat bags £2.5m in new investment
Codat, which helps connect internal systems of small businesses to banks and FinTechs, has secured a £2.5m investment. Banking Competition Remedies (BCR) led the round. Codat will use the funds to open up its APIs to a self-serve basis. The idea is that this will enable more FinTechs to build new services and products for SMEs and enable more companies to use the Codat offering, the company claims.
Mobilexpress said to raise $2m for its Series A
Mobilexpress, the online payments platform, has collected $2m in its Series A round. Collective Spark, an early-stage venture capital fund that targets technology startups, led the round. The Turkish company’s product suite includes one-click payments, payment gateways, e-commerce and mobile payment processing, insurance payments, bill payments, point-of-sale terminals, subscription and rental payments, and more.
Spenmo secures $2m seed round to support move into Indonesia
Singapore-based Spenmo has reportedly bagged $2m in its seed funding round to help its move into the Indonesian market. The capital was supplied by Y Combinator, Rocket International, Iterative Capital and angels from the XA Network, according to a report from Nikkei Asian Review.
Hammock bags £1m in seed round
UK-based PropTech Hammock announced last week that it had secured £1m in a seed funding round backed by Fuel Ventures, Ascension Ventures, Founders Factory and several unnamed angel investors. The startup provides landlords and property managers with better oversight and financial health over their rental properties. Hammock will use the money to fund developments of its solutions.
Liopa secures unknown investment
Automated lip-reading technology startup Liopa, which closed a £40m investment earlier in the month, has topped up its accounts again. Although it is unclear how much was invested in the new raise from Future Fund, which was developed by the UK government and delivered by the British Business Bank to support high-growth firms through the challenges caused by the Covid-19 pandemic.
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