USA dominated this week’s FinTech funding rounds, with 15 of the 22 rounds coming from the country.
FinTech led the way for the industries with 8 funding rounds, ahead of CyberTech with six. Meanwhile, InsurTech and PayTech had three and RegTech and WealthTech had one.
US-based FinTech Nile had the largest funding round this week, with a massive $175m Series C investment secured as the organisation looks to expand its reach in the sector.
That figure made up over a quarter of the $623.8m that was raised by the organisation’s over the past week.
Here are this week’s funding rounds.
Credit card FinTech company Petal has revealed that it has closed a committed $200 million debt facility from Victory Park Capital (VPC).
The move coincides with an announcement that Petal has also agreed to a multi-year extension of its existing term loan facilities and closed a new term loan facility for up to $20 million of incremental commitments with Trinity Capital.
In addition, Petal has raised more than $20 million in new equity financing from its existing investors, building on the $35 million in funding the organisation announced in May.
Nile secures $175m Series C to revolutionise enterprise network solutions
Nile, the leader in next-generation enterprise networks, is paving the way for innovation in IT infrastructures.
Since emerging from stealth mode less than a year ago, the company has swiftly expanded its reach and influence in the sector.
Nile announced a $175m Series C investment round co-led by March Capital and Sanabil Investments. Strategic participation came from solutions by stc, Prosperity7, Liberty Global Ventures, and stc CIF (Corporate Investment Fund), along with contributions from 8VC, Geodesic Capital, FirstU Capital, and Valor Equity Partners.
Nile is known for its market-leading network-as-a-service (NaaS) solution, delivering more secure wired and wireless services. By extensively utilising monitoring, analytics, and automation, the company has rapidly expanded beyond North America into Europe, the Middle East, Africa, and Asia. Collaborations with over 100 channel and service provider partners and organisations like Stanford University further underscore Nile’s growing presence.
The fresh round of financing will enable Nile to further its mission to eliminate operational complexities in enterprise networks and support cloud-born enterprise IT solutions. It aims to enhance integrated defences against cyber attacks, innovate at the enterprise edge, eliminate upfront capital expenditure-based consumption, and enable automation of all network services.
Nile’s commitment to security is evident in their steadfast focus. Incorporating Campus Zero Trust Network Access (ZTNA) principles by design and automating network access control (NAC) mechanisms, Nile has achieved top-tier certifications like ISO 27001, SOC2 Type II, and CSA Level 1, reinforcing its leadership position.
Nile CEO and co-founder Pankaj Patel said, “Cloud-born edge infrastructure solutions are altering the way we engage with each other and interact with physical spaces in offices, schools, and venues. AI is enabling data-driven decision-making to be adopted at a rapid pace. These trends present unique challenges, and Nile is committed to addressing them head-on, making our service as agile and innovative as the technology solutions it enables.â€
Sumant Mandal, co-founder and managing partner at March Capital, also expressed his support for Nile: “In just four years, Nile has engineered an entirely new connectivity experience that prioritizes security and empowers IT to transform operations. Were thrilled to deepen our support for Pankaj, John Chambers, and their impressive bench of talent as they continue to innovate the enterprise network.â€
The Series C funding brings Nile’s total funding to $300m, reflecting a continual effort to expand and redefine its global position in the enterprise network market.
Copyright 2023 FinTech Global
Novo introduces Novo Funding, securing $125m facility
Novo, described as a “powerfully simple†financial platform for small businesses, has announced the launch of a new offering, Novo Funding, designed to provide rapid and flexible access to working capital.
Novo has secured a $125m facility from Victory Park Capital (“VPCâ€), aimed at providing working capital through Novo Funding, according to a report from FinTech Finance News.
Novo operates as a financial platform specifically designed for small business owners. With the introduction of Novo Funding, the company offers a streamlined and instant way for small businesses to access up to $75,000 in working capital. This includes a straightforward application process, autonomy over fund deployment, and clear, straightforward repayment schedules.
The newly acquired $125m will be channelled into Novo Funding to support small business owners’ short-term financial needs and long-term growth objectives by providing a seamless working capital experience.
This launch follows a successful pilot of Novo Funding, where more than $35m was accessed by thousands of small business owners. Additionally, Novo continues to develop solutions to improve small business cash flow, including launching a new debit card, completing a Gusto integration, and enhancing Novo Invoices. The company also earned a spot on the 2023 Forbes Fintech 50 list.
Novo founder and CEO Michael Rangel said, “When a small business owner wants to invest in their business growth or simply needs additional funding to cover an upcoming payroll cycle, they have incredibly limited options for accessing capital. Novo Funding is built to support small business owners’ short-term financial needs and long-term ambitions with a seamless working capital experience.â€
Kevin Phillips, EVP of Credit at Novo, noted, “There’s simply no other small business working capital product on the market that combines the speed and simplicity of Novo Funding.
Jason Brown, Partner at VPC, also said, “Michael and the Novo team have thoughtfully expanded their offerings to meet the financial needs of small business owners, and we are pleased to be partnering with them to support the new Novo Funding product.â€
Jerrys AI-powered revolution in car insurance accelerates with $110m raise
Jerry, a service known for its PriceProtect technology that helps car owners find optimal insurance rates and refinance loans, has doubled its offerings.
The company has raised $110m in its Series C2 equity financing round. The investment was led by Park West Asset Management, with reinvestment from Goodwater Capital, Highland Capital Partners, and Plug And Play Ventures. The debt facility was led by TriplePoint Capital, who also invested in the equity financing.
Jerrys platform offers a variety of tools and services for car owners. The new GarageGuard tool simplifies maintenance and repair details, providing cost estimates and partner discounts. Think of it as a WebMD for cars. DriveShield, on the other hand, assists customers in becoming safer drivers through its driving score tracker and rewards program, while maintaining the security of their driving data.
The newly acquired funding will be used to accelerate the expansion of the app, including its latest services GarageGuard and DriveShield. These innovations empower car owners to make informed decisions about maintenance and driving habits, contributing to overall convenience and safety.
With a reach extending to 4 million Americans, Jerry’s AllCar app provides an all-in-one solution for car owners. From finding competitive insurance rates to refinance options and now including transparency into maintenance and repair costs, Jerry continues to innovate and address the needs of American drivers.
Jerry co-founder and CEO Art Agrawal said, “Most of the hassles that come with being a car owner need reinvention. Jerry is addressing those unmet needs in the market, helping Americans make good decisions about their cars every day. Highland Capital Partners General Partner Corey Mulloy also expressed his thoughts, “Leveraging AI to deliver these data-backed, high touch services efficiently meets the demand of American drivers. This app is consistently adding value for customers and building long-term relationships with car owners nationwide.”
Previously, Jerry quietly secured $110 million in additional equity and debt financing in Q2 2022, bringing its total funding to $242 million. The company also raised $75m in December 2021.
Endor Labs catches the investors eye with a hefty $70m funding raise
Endor Labs, a start-up focused on code and pipeline governance, has successfully raised $70m in an early-stage funding round.
Led by Lightspeed Venture Partners, the funding round saw participation from Coatue, Dell Technologies Capital, Section 32 and over 30 industry-leading executives.
Endor Labs has committed itself to enhancing code security and boosting developer productivity. According to the company, developers are currently overwhelmed with security alerts and are forced to invest significant time in integrating and maintaining security tools within their continuous integration and delivery, also known as CI/CD, pipelines. On top of this, they constantly negotiate priorities and exceptions with security teams.
With a platform built primarily on open-source software (OSS) governance, Endor Labs targets this issue by assisting teams to select and maintain secure, high-quality open-source software. As a result, the company claims to reduce vulnerability noise by approximately 80%, by focusing solely on risks that would genuinely impact an organisation’s operations.
Endor Labs plans to use the new funding to deepen its existing capabilities and expand into new areas of software development lifecycle. As the founder and CEO, Varun Badhwar, articulated, the raised capital will contribute to deepening our existing capabilities and extending to other areas of the software development lifecycle, where AppSec can help developers ship secure code without a productivity tax. The firm also aims to continue its investment in channels and expanding its go-to-market initiatives on a global scale.
An additional highlight of Endor Labs’ operations is its Dependency Lifecycle Management Platform. This platform conducts in-depth analytics into every OSS dependency, aiding developers in monitoring and maintaining them on a large scale and facilitating improved decision-making.
Endor Labs CEO Varun Badhwar shared, “Our Code and Pipeline Governance Platform goes beyond known vulnerabilities to give security teams a way to measure both security and operational risk. Thanks to a deep understanding of dependency usage across repositories, security professionals can prioritise vulnerabilities that are actually reachable and exploitable and detect next-generation supply chain attacks.”
South Korean FinTech Finda secures $37m in Series C
South Korean FinTech Finda, which operates as a prominent loan comparison platform in the nation, has successfully closed a $37m Series C funding round.
Finda has secured $37m in this funding round, with significant investment coming from JB Financial Group and 500 Global, according to a report from FinTech Futures.
With this new infusion of funds, Finda plans to expand its platform further, introducing new products such as mortgage loan repayment, deposit and insurance comparison, and brokerage services. The company is also aiming to launch an artificial intelligence fraud transaction detection system (AI-FDS), as well as develop a specialised alternative credit rating model.
JB Financial Group has not only invested but engaged with Finda strategically, acquiring a 15% stake in the company. The acquisition was split between JB Financial Holdings and Jeonbuk Bank, buying 5% and 10% stakes respectively. This partnership has been fruitful, with Jeonbuk Bank collaborating with Finda on a digital credit loan product offering since 2020.
HSBC and Tradeshift embark on $35m joint venture to enhance embedded finance
HSBC and Tradeshift, a renowned B2B FinTech company, have recently joined forces in an announcement made today.
Their collaboration aims to launch a jointly-owned business focusing on the development of embedded finance solutions and financial services apps.
As part of this collaboration, HSBC will make a $35m investment into Tradeshift in two stages, joining its board. The overall funding round, which includes HSBC’s investment, is expected to raise at least $70m.
This joint venture between HSBC and Tradeshift will enable the deployment of various digital solutions across Tradeshift and other platforms. The scope will include payment and FinTech services embedded into trade, e-commerce, and marketplace experiences. This partnership aims to help Tradeshift scale its business commerce proposition around the world.
The new funds will be utilized to enable Tradeshift to expand its global commerce network and bolster the development of world-class technology. More specific details about the joint venture will be revealed ahead of its planned launch in early 2024.
HSBC, supporting around 1.3 million businesses and overseeing over $800bn of annual trade flows, is the world’s largest trade bank. Tradeshift’s platform supports over $260bn of annual gross merchandise value, catering to a million business users.
Global Commercial Banking CEO at HSBC Barry Byrne said, “Enabling and growing global trade has been in HSBC’s DNA for almost 160 years. We are very excited to partner with Tradeshift to help businesses and their suppliers trade more smoothly using world-class technology and solutions that the joint venture will deliver.
Meanwhile, CEO and Co-founder of Tradeshift Christian Lanng expressed, “The world’s biggest trade bank and the world’s largest trade network are joining forces. Our deepening partnership with HSBC delivers a strong foundation from which to scale and accelerate our vision of a trade network that creates economic opportunity for businesses everywhere.”
Cyble’s AI-driven cybersecurity gets a $24m boost
Cyble, a burgeoning firm that brilliantly fuses cybersecurity with artificial intelligence (AI) to fashion state-of-the-art threat intelligence solutions, has announced a remarkable achievement in its latest funding round.
The company has raised $24m from a collection of the world’s most esteemed venture capital groups, further solidifying Cyblea’s role as an industry leader.
Cyble operates at the forefront of cybersecurity, employing AI as the core of its advanced threat intelligence offerings. By utilising AIs predictive and analytical prowess, Cyble produces more intricate, nimble, and precise cybersecurity strategies that counter the constantly morphing threats of the digital age. More than merely responding to the digital landscape, Cyble actively shapes it through AIs transformative impact.
The substantial financial injection is geared to escalate Cyble’s technological advancements, specifically focusing on AI-powered cybersecurity solutions. The funds will also broaden the company’s global presence and fortify its unwavering dedication to forging a more secure digital realm.
The newly acquired funds are seen as not just financial reinforcement but a validation of Cyble’s unparalleled role in incorporating artificial intelligence within the cybersecurity field. Celebrated as the Go-To Place for all threat intelligence solutions, this funding represents a significant leap towards a future safeguarded by cutting-edge AI technologies.
Cyble CEO & Co-Founder Beenu Arora said, “This investment stands as a testament to the hard work our team has been investing to execute toward our vision. With this investment, we are able to significantly ramp up our product investments and our global marketing efforts.”
Cyble COO & Co-Founder Manish Chachada also added, “Following the Russian invasion of Ukraine, a surge in global cyber warfare has underscored the crucial need for companies to heighten their security measures and monitor dark web activities. Threat Intelligence has never been more important.”
Software security firm Socket lands $20m in a funding round
Socket, a software supply chain security firm, has successfully grabbed the attention of investors with a recent $20m funding raise.
The company announced it has raised $20m in new financing. Leading the investment round were Andreessen Horowitz (a16z), with a notable equity investment from Abstract Ventures.
Socket, founded by open source developer Feross Aboukhadijeh, is developing a technology that utilises content-based analysis to examine the behaviour of software dependencies. This enables the detection and quick fixing of suspicious activities. The company’s innovative approach involves real-time monitoring of changes to software packages, aiming to prevent compromised or hijacked packages from entering the software supply chain.
The new funding is targeted at accelerating the development of Socket’s unique tools to detect and block software supply chain attacks proactively. Their product range includes tools to identify risky APIs, monitor changes in real-time, and block red flags in open source code, such as malware, typo-squatting, hidden code, misleading packages, and permission creep.
In addition to the main focus, Socket is also engaging AI-driven source code analysis, collaborating with ChatGPT to scrutinise npm and PyPI packages for red flags. The collaboration aims to use AI to summarise the findings and enhance the overall efficiency of the system.
Converge Insurance raises $15m from Forgepoint Capital
Converge Insurance, a leading managing general agent (MGA) specialising in cyber risk management and underwriting, announced its successful raising of $15m in Series A funding.
The investment comes from Forgepoint Capital, a prominent venture capital firm dedicated to cybersecurity, as the company looks to redefine the industry’s approach to cyber protection.
The funding round includes $15m from Forgepoint Capital, with Managing Directors Don Dixon and Andrew McClure joining Converge Insurance’s Board of Directors as part of the investment deal.
Converge Insurance operates as a modern MGA, blending cyber insurance, security, and technology to address the critical need for cyber protection among small to medium-sized businesses (SMBs). With the alarming rate of cyberattacks affecting SMBs, Converge employs a proprietary data ecosystem powered by expert underwriting, offering precise cyber risk solutions. These innovative solutions aim to deliver enhanced outcomes for its customers, with a primary focus on SMBs.
With the new funding, Converge Insurance plans to accelerate the expansion of its platform functionality, broaden its go-to-market strategies, and increase insurance capacity for modern MGA. The funds will also be utilised to expand outreach and grow its bench of in-house experts, all aiming to accelerate the availability of the Converge platform on a global scale.
In addition to the funding, Tom Kang has been appointed as the new CEO of Converge Insurance, part of the financing round. Moreover, last week, global insurer QBE North America launched a cyber insurance program with Converge, marking the beginning of many partnerships as the company scales.
Forgepoint Managing Director Don Dixon said, “Converge is the latest company in our investment strategy to reinvent cyber insurance and risk management. We couldn’t be prouder of the seasoned team assembled at Converge and the progress they have achieved in such a short amount of time with their unique cyber underwriting model.”
Managing Director Andrew McClure further commented, “What they have been building is truly world-class and will change the game for an industry in dire need of modernisation. I am excited to work with Tom Kang to lead the company forward together with this team and for the platform to make its global debut.”
The company’s previous partnerships were also highlighted, with Converge acting as the program administrator for leading global insurer QBE North America’s cyber insurance program, demonstrating a trajectory of strategic collaboration in the InsurTech space.
Finicast bags $12.8m to revolutionise enterprise planning
Finicast, a modern SaaS enterprise collaborative planning platform that allows teams to model, plan, forecast, and track performance, has announced a significant funding milestone.
The company has raised $12.8m in a seed funding round led by Celesta Capital. This funding is set to play a crucial role in advancing the company’s platform and go-to-market strategy.
Finicast empowers organisations of all sizes and across various industries to unlock the potential of their business planning. The platform offers a seamless integration of traditional planning platforms power with the flexibility of modern SaaS tools. It enables multidimensional collaborative planning, allowing businesses to adapt swiftly to dynamic needs and achieve rapid results.
Finicast aims to utilise the seed funding to enhance its tools for creating and updating flexible models, facilitating collaboration across departments, and scaling to handle large data sets. The objective is to unlock new ways to achieve accurate forecasting and planning in a customised manner.
The Finicast platform provides quick time-to-value at a lower entry price and requires fewer onboarding resources. It offers a flexible workspace that goes beyond traditional solutions, allowing collaboration through task management, inputting data directly into models, and advanced version control. Leveraging proprietary PivotFrame data engine technology, Finicast offers a centralised platform to enable precise decision-making and drive organisational efficiency.
Finicast CEO Daniel Reif said, “Our aim is to equip teams with the tools they need to create and update flexible models, collaborate seamlessly across departments, and scale effortlessly to handle large-scale data sets. Through this funding, we will be able to unlock new pathways to achieve accurate forecasting and planning in a bespoke fashion.”
Celesta Capital Founding Managing Partner Michael Marks said, “Finicast is delivering on the clear need to bring more simplicity to this complex process. We are thrilled to support their next phase of growth.”
The company has successfully raised $12.5m in seed funding, in a round led by global software investor Insight Partners. Other major participants included Hetz Ventures and the CrowdStrike Falcon Fund, along with well-known cybersecurity angel investors such as Shlomo Kramer, Mickey Boodaei, and Rakesh Loonkar.
DebtBook, a debt, lease, and subscription management software company based in Charlotte, has closed a significant investment round.
The company has successfully raised $12.5m in a Series A-1 funding round. The investment was spearheaded by Elephant Partners and received support from Meeting Street Capital and CreativeCo.
DebtBook operates in the domains of local government, higher education, and healthcare. The company offers a cloud-based platform that empowers finance teams to manage their debt, leases, and subscriptions with enhanced efficiency, collaboration, and transparency.
The cash injection was primarily raised by Puma Private Equity who led the round, which also featured participation from The North East Development Capital Fund.
This latest tranche bring Pockit’s total raised to around $50 million as the company looks to enhance its credit building tools.
The company’s platform assists clients in proactively identifying, prioritising, and mitigating risks within their cloud operating environments.
Leading the investment was Prosus Ventures, and they were joined by Cercano Management and Atlassian Ventures.
The funds are expected to allow the API for instant bank payments to cut out the “middle-men” transaction fees and significantly increase the speed of these transactions, according to TechCrunch.
In a statement, Ferdinand Dabitz, co-founder Ivy said: “In ten years, trillions of dollars worth of payments will be paid by bank, not by card – a major shift Ivy will drive.
Abbey Labs, an innovator in identity and access management (IAM), is making strides in the technological landscape.
Building an access governance platform specifically designed for engineers, the company aims to ensure a more secure world through automation.
Abbey Labs has raised a seed round of $5.25m to enhance the security and automation of access to critical data infrastructure. Point72 Ventures led this investment, with additional participation from Haystack, Essence Ventures, and angel investors across various sectors.
QuoIntelligence has developed a distinctive threat intelligence service that integrates AI with human expertise. Operating in Germany, Italy, Spain, and the US, they have served clients across various critical sectors in the EU, including finance, government, insurance, manufacturing, and more. Their service plays an essential role in enhancing cyber resilience and diminishing risks for organisations.
The firm has received a funding extension of $1.5m, making a total of $2m from the Pacific Economic Development Agency of Canada (PacifiCan). This extension is part of a larger investment of over $8.1m in PacifiCan funding towards various Greater Victoria organisations, announced on June 27, 2023.
Peloton Technologies, which is based in Victoria, British Columbia, is committed to developing its innovative SaaS-based payments platform.
Their mission is to expand the client base of merchants who are eager to transition from traditional processes to streamlined digital transactions, making payments simple and efficient for small to medium businesses across Canada.
The system has been put in place to avoid conventional banking systems, as part of the rotating savings and credit association (ROSCA) model.
Unfortunately, this is due to Bloom Money’s disenfranchisement with the established system, with the organisation’s CEO Nina Mohanty describing it as “blatant racism.”
Financial Information Technologies, a prominent technology provider that serves the beverage alcohol industry, has announced the receipt of a strategic investment from General Atlantic, a well-known global growth equity firm.
Although the exact amount raised was not disclosed, General Atlantic has joined existing investor TA Associates (TA) in supporting Financial Information Technologies.
Financial Information Technologies has a 30-year history of simplifying how alcohol retailers, distributors, and suppliers conduct business. They provide purpose-built payment solutions, business management tools, and data and analytics technology. They also built the first electronic payment solution for the regulated beverage alcohol industry. Today, they partner with over 4,600 distributors and 225,000 retail locations across the 50 states of the US.
Although the exact amount of investment hasn’t been disclosed, the agreement will allow Atalaya and Culpeper to take a minority stake in the company. The deal also involves support from San Francisco-based Golden Gate Capital, a previous backer of Mosaic.
Mosaic operates as a specialty insurer, with a mission to scale specialty insurance platforms. With its differentiated and dynamic business and capital model, the company manages complex risks on a global basis.
Keep up with all the latest FinTech news here
Copyright © 2023 FinTech Global
