$102m Bugcrowd deal leads the way in this week’s FinTech funding rounds

February 16, 2024

RegTech giant Bugcrowd, led the way in this week’s FinTech funding round by securing an impressive nine-figure deal.

The leading provider of crowdsourced security services powered by AI, stole the spotlight with an impressive $102m Series E funding round. This substantial investment underscores the growing demand for robust cybersecurity solutions in today’s digital landscape, particularly amidst escalating cyber threats and vulnerabilities.

The deal was more than double the amount of the largest deal from another firm this week, which came from Dutch FinTech firm Finom, which raised a substantial €50m to bolster its SME banking services, catering specifically to small businesses and freelancers.

Overall, this week’s FinTech funding rounds have amounted to a total of $325.05 million across 16 deals, underscoring the sector’s resilience and growth potential despite the challenging global economic landscape.

With a diverse range of companies securing investments in key subsectors such as InsurTech, FinTech, RegTech, and PayTech, the industry continues to demonstrate its capacity for innovation and disruption on a global scale.

Breaking it down further, FinTech ruled the roost with 8 deals, ahead of RegTech with five. While there were quieter weeks in the InsurTech (2) and PayTech (1) spaces respectively.

Nationally, the United States dominated the funding landscape this week, accounting for the lion’s share of deals with 10 investments.

This robust activity underscores the country’s position as a global hub for FinTech innovation and investment. Meanwhile, other nations also made notable contributions to the funding rounds, with Sweden, Lithuania, the Netherlands, Colombia, Israel, and the UAE each securing one deal.

Surprisingly, the usual FinTech activity hub, the UK, saw no deals this week, marking a departure from its typically bustling investment scene.

Here are this week’s FinTech funding rounds:

Bugcrowd secures $102m in Series E to bolster crowdsourced security services

Bugcrowd, a leader in AI-powered crowdsourced security solutions, has recently announced a significant boost to its operations with a $102m strategic growth funding round.

The investment was led by General Catalyst, with contributions from longstanding partners Rally Ventures and Costanoa Ventures. This new influx of capital is earmarked for accelerating Bugcrowd’s global expansion, particularly across EMEA, APAC, and the US, fuelling continuous innovation of the Bugcrowd Platform, and exploring strategic mergers and acquisitions (M&A) opportunities.

Dutch FinTech Finom raises €50m to bolster SME banking services

Finom, a challenger bank based in Europe and specifically tailored for SMEs and freelancers, has recently announced a substantial boost to its operations with a Series B equity funding round, raising a noteworthy €50m.

This Dutch startup, founded in 2019, has carved out a niche for itself by offering a comprehensive financial product designed to meet the unique needs of small businesses.

Bold’s Series C funding hits $50m to revolutionise digital payments in Colombia

Bold, a pioneering financial technology company headquartered in Colombia, has successfully secured a substantial $50m in Series C funding.

This significant financial injection was led by the company’s existing investor, General Atlantic, with notable participation from the International Finance Corporation, a member of the World Bank Group, alongside other returning investors InQLab and Amador, according to a report from TechCrunch.

Nucleus Security secures $43m in Series B funding

Nucleus Security, a pioneer in the Risk-Based Vulnerability Management sector, has successfully raised $43m in a Series B funding round.

The round was spearheaded by Arthur Ventures and Lead Edge Capital, marking a significant milestone in the company’s journey to revolutionise enterprise risk management.

The investment was led by General Catalyst, with contributions from longstanding partners Rally Ventures and Costanoa Ventures.

Rasa bags $30m in Series C led by PayPal Ventures and StepStone Group

Rasa, the forefront of generative conversational AI technology, has successfully closed a $30 million Series C funding round.

This significant financial milestone was co-led by StepStone Group and PayPal Ventures, with notable contributions from Andreessen Horowitz (a16z), Accel, and Basis Set Ventures. This round marks a pivotal moment for Rasa, underlining its leadership position in the rapidly evolving AI sector.

Clarity secures $16m in seed funding to combat Deepfakes with AI cybersecurity

Clarity, an innovative firm specialising in AI cybersecurity, has successfully secured $16m in seed funding. The round was led by prominent investors Walden Catalyst and Bessemer Venture Partners, marking a significant step forward for the company.

Specialising in the detection and neutralisation of Deepfakes and synthetic media, Clarity is at the forefront of addressing one of the most critical challenges in the digital age.

InsurTech Buddy lands $7m in latest funding round

InsurTech startup Buddy has secured a significant boost in funding, raising $7m from 49 investors, to bring its total funding to $8m.

The recent funding round, closed in mid-January, saw notable investors such as Sequoia Capital, Plug and Play, and Atypical Ventures contributing to Buddy’s growth trajectory, according to InsurTech Insights.

Mia Share’s $6.5m boost to transform payment solutions for technical schools

Mia Share, a FinTech company specialising in streamlining digital payments for trade and technical schools, has raised $6.5m in a seed funding round.

The investment was led by TTV Capital, according to a report from PYMNTS.

At its core, Mia Share provides a comprehensive payments platform designed specifically for administrators of trade and technical schools.

KTrust secures $5.3m in seed funding to revolutionise Kubernetes security

KTrust, a trailblazer in Kubernetes (K8s) security, has announced its successful emergence from stealth mode, securing a $5.3m seed investment led by Canadian-Israeli deep-tech venture capital firm Awz Ventures.

Specialising in continuous threat exposure management for Kubernetes environments, KTrust has introduced an innovative, attacker-centric approach to enhance security in dynamic development settings.

Cascading AI bags $3.9m in pre-seed funding to transform banking with AI

Cascading AI, a pioneering FinTech startup established by Stanford University and Y Combinator alumni, has proudly announced the closure of its $3.9m pre-seed funding round.

The fundraising was spearheaded by Peterson Ventures, a well-regarded investor in the vertical SaaS space, known for its knack in spotting disruptive startups.

Artie raises $3.3m to solve database replication

Artie, a pioneering tech firm specialising in real-time database replication, has successfully closed a Seed funding round, securing $3.3m in investment.

The funding was led by Exponent Founders Capital, with significant participation from venture capital heavyweights General Catalyst and Y Combinator, alongside notable angel investors including Benn Stancil, Lenny Rachitsky, and Arash Ferdowsi.

Cambio secures $3m in seed funding to revolutionise debt negotiation with AI

Cambio, which is introducing AI bots designed to negotiate debt and communicate with bank customers, has raised $3m for its seed round.

The seed round saw contributions from an impressive roster of investors, including Builders, DVC, EGR Partners, Envisant, Encurage Financial Network, Goodwater Capital, Leonis Investissement, Sandhill Capital, Y Combinator (YC), and various angel investors, according to a report TechCrunch.

Kema, UAE FinTech startup, revolutionises B2B payments with $2m pre-seed fund

Kema, a pioneering FinTech platform based in the UAE, has announced a successful $2m pre-seed funding round.

The investment was led by Speedinvest, with notable participation from the Dubai Foundation District Fund (DFDF), according to a report from Wamda. This financial injection is set to propel Kema’s mission to revolutionise the business-to-business (B2B) transaction landscape.

InsurTech startup Cake lands $1.3m in pre-seed funding

Cake, a transactional marketplace tailored for independent insurance agents, has successfully concluded a pre-seed funding round, securing a $1.3m investment.

Backed by this tranche, Cake plans to enhance its platform further, bolster customer acquisition efforts, and expand critical services, such as in-platform lending and legal support.

Kameo raises £1.1m investment from Incore Invest for property lending platform growth

Kameo, a leading investment platform in Scandinavia, has recently bolstered its foundations with a significant £1.1m investment from Incore Invest, as part of a broader £2.26m share issuance.

This strategic investment aims to further develop Kameo’s dynamic alternative lending platform, positioning it as a premier choice for property development investments across Scandinavia.

Lithuania’s Cyber Upgrade raises €650k to strengthen SME cybersecurity solutions

Lithuania-based cybersecurity startup, Cyber Upgrade, has successfully secured €650,000 in pre-seed funding to bolster its mission of providing inclusive and accessible cybersecurity solutions for small and medium-sized enterprises (SMEs) and FinTech companies.

The investment round saw participation from venture capital firms FIRSTPICK, NGL Ventures, and several notable business angels.