Two large deals of $296m and $93m respectively stole the show in this weeks FinTech funding round up.
This week saw a total of 13 deals closed across the FinTech sector, with the top ten deals securing a modest $543.3m collectively.
The winning deal this week was responsible for the lion’s share of that. Switzerland-based small-to-medium enterprise (SME) lender Teylor bagged an impressive $296m in a financing agreement with Barclays, M&G Investments, and other undisclosed investors.
Next was Measurabl, an ESG technology platform for real estate, which raised $93m in Series D funding. Following not far behind was PayTech company NomuPay with $53.6m and Magic with $52m Series A fund.
The US once again dominated, accounting for six of the top ten deals. In addition to Measurabl, these came from Magic with $52m Series A; PayTech company Vartana with a $20m Series B raises’ CyberTech company Alcion with an $8m seed round; Boom with £4.5m and WealthTech company Credit Genie with $4m.
The remaining four spots on the top 10 comprised of European companies. Earlier this week FinTech Global Research reported that European InsurTech saw a disappointing start to the year with deal activity and average deal size dropping YoY.
In the first quarter of 2023, the number of InsurTech deals in Europe declined by 51% compared to the levels recorded over the same period in 2022, with a total of 37 transactions. The average European InsurTech funding round reduced 39% YoY to $6m. European InsurTech deals accounted for 26% of global InsurTech deals in Q1 2023 with InsurTech companies completing 177 deals, globally.
Superscript, a business insurance provider, had the largest European InsurTech deal in Q1 2023 after raising $55m (£45m) in their latest Series B funding round, led by BHL Holdings. Superscript plans to use the funds to further develop its underwriting and broking capabilities, enhanced by machine learning. The company has a fully “self-serve” online platform that allows customers to buy and manage insurance online with the help of machine learning technology. It will also expand its range of insurance and products and services for “international distribution” following the opening of its office in Rotterdam last year to support its growth plans in Europe. Having seen more than a fivefold increase in its customer base since its £8.5m Series A raise in 2020, the company now counts Amazon Business and Virgin Money Bank among its partners.
The UK was the most active InsurTech country in Europe with 14 deals, a 38% share of total deals. France was the second most active with six deals, a 16% share of deals and Germany was third with four deals, a 11% share of total deals.
Here are the deals that took place this week.
Teylor secures €275m funding
Zurich-based Teylor, a leading European small-to-medium enterprises (SME) lender, has successfully secured a significant financing agreement with Barclays, M&G Investments, and other undisclosed investors.
In a landmark transaction, Teylor attracted up to €275m in capital, which will significantly expand its capacity to provide quick and flexible access to financing for over 500 European SMEs. This sizeable financing deal highlights the strength and reliability of Teylor’s platform, team, and technology.
Teylor operates a unique FinTech platform, offering fast and flexible financing solutions to SME borrowers primarily in Germany. The firm has developed proprietary technology for deal origination, credit risk assessment, and private debt, enabling the processing of more than €3bn of SME debt over the past three years.
The fresh capital will enable Teylor to continue its rapid expansion, and meet the diverse financing needs of SMEs through its credit platform. The funding will provide an array of debt products that will serve to bolster the financial security and growth potential of SMEs across Europe.This fundraising comes at a turbulent time in the macroeconomic landscape, and amid considerable uncertainty in capital markets. Yet, the success of this transaction attests to the robustness of the Teylor platform and its impressive market position.
Measurabl gathers $93m to boost real estate ESG platform growth
Measurabl, an ESG technology platform for real estate, has announced the completion of its $93m Series D funding round.
This substantial financial boost was set in motion to spur on the global expansion of Measurabl’s market-leading ESG technology solutions for real estate.
The Series D round was oversubscribed and was jointly helmed by Energy Impact Partners and Sway Ventures.
In addition to the leading investors, the round saw participation from a comprehensive global alliance of top-tier venture and strategic investors, including Moderne Ventures, WVV, Suffolk Construction, Broadscale, Camber Creek, Salesforce Ventures, Building Ventures, Constellation Technology Ventures, Concrete Ventures, RET Ventures, Colliers, and Lincoln Property Company.
Measurabl’s platform plays a vital role in the world of ESG compliance. The company caters to a diverse range of customers, from small businesses to large corporations, irrespective of their level of ESG maturity. Measurabl is employed to measure, manage, report, and act on ESG data.
The platform currently boasts over 16 billion square feet of commercial, residential, and corporate real estate, accounting for more than $2tn in asset value across 93 countries. This vast expanse has resulted in the world’s largest real estate ESG dataset, providing unparalleled insights into peer-relative performance.
The new funding is earmarked for the further development of Measurabl’s leading ESG technologies. This expansion will not only cover more geographies but also bolster their mission of providing investment-grade data to aid the real estate industry in its transition to a sustainable, profitable future.
NomuPay secures $53.6m for expansion into high-growth regions
NomuPay, an innovative FinTech firm committed to streamlining global payment processes, has successfully secured funding to fuel its ambitious expansion plans.
The modern end-to-end payment platform garnered an impressive $53.6m in its latest funding round. The venture was co-led by Finch Capital and Outpost Ventures, an investment platform of Neuberger Berman. Several private individuals also participated in this round, demonstrating robust investor confidence in NomuPay’s vision and strategic approach.
At its core, NomuPay is a response to the complexity and fragmentation of the global payments landscape. It presents a unified, efficient, and simplified solution to the ‘multiples’ problem that many expanding enterprises grapple with – multiple countries, payment types, use cases, channels, and ever-evolving regulations. The company’s flagship product, the Unified Payments (uP) Platform, elegantly eliminates these hurdles via a single API integration.
With the fresh funding, NomuPay aims to capitalise on its successful launch and initial client onboarding in Q4 2022. The capital will be used to further scale the business in its core markets – Southeast Asia, Turkey, and Europe. Additionally, NomuPay plans to continue adding new markets to the uP Platform and investing heavily in product development.
NomuPay’s uP Platform is built to streamline fragmented payment infrastructures, facilitating omnichannel payments acceptance and payout disbursements. It is gateway agnostic, meaning it can effortlessly augment existing payment infrastructures. The uP Platform also boasts robust data management and reporting capabilities.
PayPal Ventures backs Magic with $52m for web3 revolution
Magic, a Wallet-as-a-Service (WaaS) provider, has successfully secured $52m in a strategic funding round.
This promising FinTech company is leading the way in enabling web3 mass adoption, providing solutions for businesses striving to transition their customers to web3.
The funding round was led by PayPal Ventures and saw contributions from a series of esteemed investors including Cherubic, Synchrony, KX, Northzone, and Volt Capital. This latest influx of capital takes Magic’s total funding to an impressive $80m.
Magic has positioned itself as the go-to WaaS provider for businesses keen on a smooth transition to web3. They offer an enterprise-grade, low-effort solution that paves the way for new lucrative opportunities, ranging from customer loyalty programmes and digital collectibles to employee recognition, ticketing, memberships and more. Magic’s clientele comprises some of the most renowned brands across various sectors like retail, music, fashion and gaming, including names such as Mattel, Macy’s, Xsolla, and Immutable.
Sean Li, Magic’s co-founder and CEO, stated, “Our vision is to ignite new economic opportunities by enabling authentic digital ownership for everyone – starting with building the necessary infrastructure to onboard the next billion users to web3. With this new funding, we’re focused on expanding functionality and enabling growing use cases to continue delivering more value to our customers. We are also looking forward to making a deeper integration within the EU and APAC.”
The newly raised capital will be used for expanding Magic’s functionality and for increasing the company’s presence in the EU and APAC. Furthermore, the company will continue to deliver more value to their customers by enabling an array of web3 use cases.
Commenting on the investment, Alan Du, Partner at PayPal Ventures, said, “Magic’s wallet creation service allows companies to reach millions of users on their apps and onboard customers who are new to web3. We’re proud to be investing in Magic and believe the company will help drive the growing number of web3 use cases amongst global brands.”
Magic provides a secure, seamless and near-instant non-custodial wallet creation. The company’s patented technology allows for unrivalled scalability and offers users complete control over their assets. It is also compliant with multiple regulatory frameworks, including SOC2 Type 2, CCPA, GDPR, HIPAA, and ISO.
Wellthi reels in significant investment to reshape social finance and mobile banking
WealthTech startup Wellthi has secured funding from Virginia Venture Partners, the equity investment arm of the Virginia Innovation Partnership Corporation (VIPC).
Based in Arlington, Virginia, Wellthi is an embedded social finance software that is fundamentally revolutionising how wealth is built. By infusing community spirit into the process of financial growth, Wellthi’s innovative approach is set to redefine the landscape of mobile banking and social finance.
The exact amount raised has not been disclosed, but the backing from a prominent investor like VIPC is a testament to the potential Wellthi represents in the FinTech sphere.
Wellthi’s platform is revolutionising mobile banking by harnessing the power of community influence. It reduces customer acquisition costs while reaching a wider market of consumers through a more personalised banking experience. By connecting customers with banks and offering tailored advice, Wellthi’s app allows individuals to plan, set, and track financial and life goals alongside their friends, transforming the once solitary practice of banking into a collaborative and engaging journey.
This new influx of investment will be put to use to fuel Wellthi’s customer growth. With this monetary bolstering, Wellthi seeks to expand its reach and impact, enabling more people to take control of their financial future through the power of community-based wealth management.
Notably, Wellthi’s platform has been recognised for its groundbreaking approach, earning multiple industry awards and recognitions from organisations like the FDIC, Mastercard, Nerd Wallet, Discover, and the Independent Community Bankers of America. It combines social networking with payment solutions and online communities to attract new customers for banks and credit unions.
Vartana to shake up B2B payments with $20m Series B
Vartana, an enterprise checkout platform designed for B2B software and hardware purchases, has bagged $20m in a Series B.
The start-up, launched in 2020 by ex-Motive employees Kush Kella and Ahmed Sharif, is pushing boundaries by creating a unique, fully-embedded solution to streamline the B2B sales closing and financing process.
The latest funding round saw Vartana raise $20m in a Series B funding round led by commerce and FinTech growth firm, Activant Capital. This growth investment also welcomed contributions from Mayfield and Audacious Ventures, a further vote of confidence in the company’s disruptive approach.
Vartana’s offering is transforming the world of B2B sales and financing. Large software and hardware purchases often necessitate financing from third-party lenders, yet the incumbent process, laden with paperwork and opacity, has been slow to adapt and hard to scale. This issue is particularly pressing in a time where sales speed and customer service are paramount. Vartana is stepping up to the challenge, implementing consumer-grade FinTech innovation into the enterprise sales suite.
With their new funding, Vartana plans to continue breaking down barriers in the B2B payments industry. They aim to innovate their product, expand their go-to-market strategy to more enterprises including the software & hardware reseller market, and extend the reach of the Vartana Capital Marketplace.
This marketplace guarantees Vartana can offer customers high loan approvals, a diverse set of payment terms, and competitive rates. Additionally, Vartana is set on scaling their team, with a goal to double their headcount to around 100 people by year’s end.
Off the back of a year that saw a staggering 600% YoY GMV growth, Vartana was introduced to Activant via their deep research on the B2B commerce & checkout sector. In recognition of Activant’s investment, partner Andrew Steele will join the Board of Directors at Vartana.
Alcion’s AI-driven backup-as-a-service platform secures $8m seed funding
The spotlight today is on Alcion, a modern data management startup pioneering an innovative Backup-as-a-Service (BaaS) platform.
Having just emerged from stealth, Alcion is set to redefine the data management sector with an impressive $8m seed funding round, backed by a cluster of esteemed angel investors.
Operating within a cloud-centric landscape, Alcion offers a dynamic, AI-driven Backup-as-a-Service (BaaS) platform. The company positions itself as an invaluable ally for Microsoft 365 administrators, offering a user-friendly, highly intelligent and secure SaaS platform as a shield against the perpetual threats of ransomware, malware, corruption, and accidental data loss.
The newly garnered funds have been earmarked for several strategic endeavours. Alcion is keen on stepping up its product development, widening its community outreach and, most crucially, bringing its novel BaaS product to market.
Niraj Tolia and Vaibhav Kamra, the savvy entrepreneurial duo behind Alcion, carry a wealth of knowledge in the realm of data protection, having formerly founded Kasten, an award-winning Kubernetes backup company, which was acquired by Veeam in 2020. The innovative pair now have their sights set on leveraging AI to enhance data protection services and arm businesses against the rising wave of cyber threats.
“Alcion’s entrance into the market with a fully-managed AI-driven backup service for Microsoft 365 users is a milestone moment,” Alcion CEO and co-founder Niraj Tolia noted, adding, “this considerable round of funding paves our path out of stealth mode, facilitates the market introduction of our cutting-edge BaaS product, fosters community expansion, and bolsters product development.”
The company’s intelligent backup scheduling, automated responses, integrated threat detection, and response algorithms are designed to plug the gaps left by traditional Microsoft 365 backup solutions. These robust features and capabilities are poised to address security concerns inherent in today’s dynamic threat environment, providing comprehensive data protection in the face of both internal and external cyber threats.
Reflecting on Alcion’s solution, Bryan Whiting, CTO of Milestone Financial Engineering, highlighted the product’s ease of use.
Google Ventures leads £5.3m pre-seed funding round for climate-tech CUR8
CUR8, a pioneer in the burgeoning carbon removals industry, has announced a successful pre-seed funding round totalling £5.3m.
The climate-tech platform aims to professionalise and accelerate the carbon removals sector, providing trustworthy and efficient solutions to businesses seeking to offset their carbon footprints.
Led by GV, Google’s venture capital division, the funding round also drew participation from a slew of investors. These included CapitalT, Climate VC, SystemaNova, Force Over Mass and ANIM. The funding reflects an increasing interest in sustainable ventures, particularly those seeking to mitigate the escalating impacts of climate change.
CUR8’s mission centres on facilitating the decarbonisation efforts of global industries. To this end, the platform purchases carbon removal credits from trusted suppliers and assembles high-quality carbon removal portfolios for its clients. Utilising various removal methods such as afforestation, direct air capture, and enhanced weathering, CUR8 helps businesses of all sizes meet their net zero targets.
The newly raised capital will be channelled towards team expansion, enhancing the platform’s capacity and driving further development of its software platform. As part of the roadmap, CUR8 aims to reduce the cost of carbon removals over time, fostering accessibility and encouraging more companies to invest in carbon offset strategies.
Additionally, CUR8 has already established a track record for providing carbon removals for high-profile events, including The Queen’s Platinum Jubilee Pageant and The State Funeral of HM Queen Elizabeth II. Other major projects include large-scale events such as British Summer Time and All Points East.
In terms of leadership insight, CUR8 co-founder and CEO, Marta Krupinska, expressed her delight at the funding outcome and the company’s future trajectory. She said, “We’re witnessing the dawn of a future multi-trillion dollar industry that has the potential to not only stop the climate catastrophe but also to drive scientific progress, and create jobs and opportunity around the world.”
US-based rent reporting platform, Boom, secures $4.5m in seed funding round
Boom, a rent reporting platform, has successfully garnered $4.5m in a seed funding round. Among the investors in this round were William Hockey and Zach Perret, the co-founders of the financial services company, Plaid.
The funding round was led by Starting Line, a venture capital firm specialising in seed investments. Other participants included Clocktower Ventures, Company Ventures, and Gilgamesh Ventures.
Boom provides a unique service to renters in the US, allowing them to build credit using their rent payment. Launched at the end of 2021, the company has seen considerable success, reporting to all three credit bureaus – Experian, Equifax, and TransUnion. According to Boom, users have seen an average increase of 28 points in their credit scores within just two weeks of using the app.
The fresh funding is expected to be channelled into developing and launching housing-focused tools for renters and NOI-focused products for real estate operators. Over the last year, Boom has built a strong subscriber base for its $2-a-month offering, experiencing a growth rate of over 450%. It’s approaching a $1m revenue run rate and has formed partnerships with industry heavyweights such as Progressive, Apartment List, and national property management companies.
Foresight and Uncapped fuel Red Flag Alert’s growth with £4.5m boost
Red Flag Alert, a credit risk data and risk intelligence firm based in Manchester, has bagged £4.5m in funding.
The round was led by Foresight and Uncapped. This financial injection underscores the trust and confidence these investors have in Red Flag Alert’s potential and the value it offers to its corporate customers.
Red Flag Alert offers an innovative software as a service (SaaS) platform providing modular business intelligence. It caters to compliance, prospecting, risk management, and financial health assessment needs for its rapidly growing corporate clientele. Their unique approach to data and risk intelligence sets them apart in the sector, resulting in robust customer loyalty.
The new funds are earmarked for an ambitious growth plan which includes continued investment in their product to deliver new functionalities for users. With the recent launch of their third-generation platform and an updated accuracy scorecard, Red Flag Alert aims to accelerate growth through improved user interfaces and functionalities.
Their revolutionary approach to customer service has been one of their most distinct strengths. The firm prides itself on being disruptive and challenging the status quo of the market, which has spurred significant growth.
Red Flag Alert’s managing director, Rich West, shared his perspective on the investment: “The data space is very fast-paced, and the demand is growing especially quickly. As disrupters in the industry, we find ourselves uniquely placed to meet the demands of our customers. This investment will help us to grow even larger to meet the expectations of our customers.”
Credit Genie cashes in on $4m Series A financing
Creditly Corp, trading as Credit Genie, a personal finance platform, has recently shared that it has successfully raised $4m in Series A funding.
The funding round saw significant investment from Tippet Ventures and Khosla Ventures, and also included contributions from Gabriel Investments.
Credit Genie is driving change in risk management and personalised budgeting for the financial middle class, using a groundbreaking combination of artificial intelligence (AI) and machine learning to offer precise, individualised financial insights. These insights are designed to enhance their users’ financial well-being.
With the infusion of this fresh funding, Credit Genie aims to augment its products and bring on board top industry talent to grow its unique perspective on behavioural finance, budgeting, and cash/credit management. The company’s ultimate goal is to facilitate millions of consumers in obtaining efficient credit at fair rates. To achieve this, Credit Genie employs cutting-edge technology that scrutinises a plethora of data points such as behaviour, chat, and qualitative indicators. This exhaustive analysis highlights a person’s ambition to improve their lifestyle and financial well-being, offering more accurate predictions and insights than traditional credit scoring methods.
Andy Sheehan, from Tippet Ventures, expressed his confidence in Credit Genie’s innovation. He stated, “We believe Creditly Corp’s innovative approach to delivering financial insights and credit-related services has the potential to play a leading role in the mobile financial services space. Their technology has already demonstrated impressive results, and we are excited to support their continued growth and expansion.”
The Credit Genie mobile platform provides financial insights and credit-related services that use personal transaction data as opposed to traditional credit data to decipher financial intentions and desires behind transactions. This unique approach delivers a more comprehensive view of creditworthiness. Furthermore, the platform leverages proprietary machine learning and AI algorithms, and “Open AI” to detect patterns and predict credit risk, leading to more accurate credit scores and better lending decisions. Alongside the series A financing, Credit Genie also secured a credit facility with affiliates of Fortress Investment Group to finance its cash advance and credit card receivables.
Pyrpose secures $1.1m to fuel climate FinTech innovation
Pyrpose, a pioneering climate FinTech platform geared towards climate finance, has reportedly announced its successful funding round.
In the angel round, the Geneva-based firm secured a robust investment of $1.1m, according to a report from Founders Today.
The lead investor, CV VC, an early-stage venture capital investor with a focus on global start-ups utilising blockchain technology, stood out among others. In addition to institutional backing, Pyrpose attracted a network of international business angels dedicated to a future where all can financially contribute to climate solutions.
A central element of Pyrpose’s innovative model is to empower consumers to understand their individual carbon footprint and, subsequently, manage their climate actions. The platform enables users to directly invest in climate solutions, resulting in returns while providing essential working capital to small and medium-sized enterprise (SME) climate innovators. This unique blend of conscious consumption and investment paints a hopeful future for our planet.
The freshly injected funds will be used to finalise Pyrpose’s private beta phase and further refine its product. The firm aims to launch its minimum viable product (MVP) in Q3, demonstrating a clear ambition for accelerated growth. In parallel, the FinTech start-up is also preparing to commence its seed funding round in the coming weeks.
Kevin Kyer, CEO and co-founder of Pyrpose, underscored the company’s mission. He said, “Our primary goal is to reduce carbon emissions. We achieve this by empowering climate-conscious consumers, whom we refer to as ‘now gens,’ to directly invest in climate solutions. Environmental impact and financial returns should be accessible to the majority.” Kyer further praised the support and funding from both angel investors and CV VC, acknowledging the challenges of making climate finance accessible to the many.
zkMe secures $2M to enhance privacy and security in digital interactions
zkMe, the zero-knowledge identity oracle provider, has successfully raised $2 million in pre-seed funding to revolutionize on-chain credential verifications.
Despite closing the funding round at the end of last year, the company has chosen to make the official announcement now, after coming out of stealth mode last month.
With the increasing importance of managing identity and personal information in the era of digital transformation, zkMe offers a solution that addresses the critical concerns of individuals and organizations.
The platform allows users to selectively disclose their credentials to authorized parties without compromising their privacy, giving them full control over their digital identities. This technology has potential use cases in various industries, including anti-sybil protection, anonymous web data attestation, and private KYC compliance.
zkMe has implemented a secure and efficient way for decentralized applications (dApps) to verify user eligibility while safeguarding privacy. Through its SSI mobile app, users can encrypt and anonymize their data and prove claims on their own devices using Zero-Knowledge Proofs (ZKPs).
This ensures that their personal identifiable information remains exclusively in their control. The ZKPs are then verified by a network of Multi-Party Computation (MPC) nodes before being minted onto the user wallet as an SBT (Selective Blockchain Transfer). zkMe’s proof-of-personhood approach guarantees the uniqueness of the DID (Decentralized Identity) holder.
Following this funding round, zkMe aims to complete testing and onboard customers on the mainnet within a month. They have also announced first go-live partnerships with Infrastructure, GameFi, and DeFi projects through their social media channels.
In the context of stricter KYC/AML requirements in DeFi enforced by the US Department of the Treasury and the SEC, solutions like zkMe’s zero-knowledge KYC play a crucial role. zkKYC enables institutions to participate in DeFi while meeting compliance standards, ensuring verified users can access financial services in a permissioned DeFi ecosystem. Furthermore, zkKYC enhances transparency, trust, and reduces the risk of fraudulent activities or data breaches in DeFi. The company is also expected to expand its credential use cases to include the verification of users’ web2 activities and social status.
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