FinTech funding his $857.2m as USA dominates market

August 9, 2024

FinTech funding performed solidly this week as $857.2m was raised on a week where the USA continued to lead the market in terms of deal activity.

22 Tranches took place over the past seven days, with the “Home of the Brave” playing host to nine of the deals – as it solidified its position as the global FinTech hub.

US cybersecurity firm Abornmal Security managed to land this week’s blue-ribboned raise, bringing home $250m to see its valuation soar to a whopping $5.1bn.

The investment round was spearheaded by Wellington Management, with ongoing backing from existing investors such as Greylock Partners, Menlo Ventures, Insight Partners, and the CrowdStrike Falcon Fund. To date, Abnormal Security has secured a total of $546 million in funding across its financing rounds.

Mexican FinTech unicorn Stori also had a landmark week, securing a a substantial investment of $212m.

This financing round includes $105m in equity, led by Notable Capital and BAI, with contributions from ACE Redpoint Ventures, GIC, General Catalyst, Goodwater, Lightspeed Ventures, and Tresalia.

The additional $107m comes from a new debt facility provided by Goldman Sachs and Davidson Kempner Capital Management LP. This investment, one of the largest in Latin America recently, significantly boosts Stori’s valuation from its previous unicorn round.

CloudPay, a British PayTech firm, was the only other company to surpass the coveted $100m raise, as it secured a significant $120m in funding.

With an impressive track record spanning 30 years, CloudPay has established itself as a major player in the payroll and payment arena.

The firm saw the substantial tranche come in with backing from Blue Owl Capital, alongside contributions from existing shareholders such as Rho Capital Partners, The Olayan Group, and Hollyport Capital.

Behind the dominance of the USA, the other nations to see deals this week included; the UK (4), Australia, (2) India (2), Canada (1), Mexico (1), Lebanon (1), and Latvia (1).

In the sector stakes, FinTech led the way with nine deals, as the second continued to show vitality, despite the rough global market conditions.

This showing of strength was also spread across the sectors, as the week proved diverse.

RegTech had a particularly strong week, landing six deals, including the week’s aforementioned headline deal. InsurTech thrived too, with four deals of its own.

On top of this, WealthTech secured two deals and PayTech landed a solitary tranche – albeit a significant one.

AI-Native firm Abnormal Security raises $250m, valuing at $5.1bn

Abnormal Security, the forefront in AI-native human behavior security, has successfully closed its Series D funding round on $250m, which has propelled the company’s valuation to an impressive $5.1bn.

The investment round was led by Wellington Management, with continued support from existing stakeholders including Greylock Partners, Menlo Ventures, Insight Partners, and the CrowdStrike Falcon Fund. To date, Abnormal Security has amassed a total funding of $546m through its financing rounds.

Central to its mission, Abnormal Security is dedicated to shielding individuals from cybercrimes by employing advanced AI technology. This involves the intricate analysis of human behavior to identify and thwart sophisticated socially-engineered attacks prevalent in today’s digital ecosystem.

Mexican unicorn Stori raises $212m to enhance financial inclusion across Latin America

Stori, the Mexican FinTech unicorn, has announced a substantial investment of $212m.

This financing round includes $105m in equity led by Notable Capital and BAI, with additional contributions from ACE Redpoint Ventures, GIC, General Catalyst, Goodwater, Lightspeed Ventures, and Tresalia.

The remaining $107m comes from a new debt facility provided by Goldman Sachs and Davidson Kempner Capital Management LP. This investment is one of the largest in Latin America in recent years and marks a significant increase in Stori’s valuation from its previous unicorn round.

CloudPay bags $120m in latest funding round

CloudPay, the leading independent provider of global payroll and payment solutions, announced today that it has secured a significant $120m in funding.

This round was led by Blue Owl Capital, alongside contributions from existing shareholders such as Rho Capital Partners, The Olayan Group, and Hollyport Capital. This new financial boost not only strengthens CloudPay’s capital base but also increases its flexibility for future expansion and development opportunities.

With an impressive track record spanning 30 years, CloudPay has established itself as a major player in the payroll and payment arena. The company serves over 280 corporate clients, managing payroll across more than 130 countries. The newly acquired funds are earmarked for several ambitious projects aimed at enhancing their customer product and technology offerings.

ThinCats lands £75m in mezzanine funding from CPP Investments

ThinCats, a leading player in the FinTech sector, has just secured £75m in a mezzanine funding injection from CPP Investments.

ThinCats uses advanced data analytics and traditional lending expertise to tailor funding solutions ranging from £1m to £20m for each SME it supports, aiming to help these businesses thrive.

ThinCats focuses on mid-sized SMEs, defined as those with £0.5m to £40m in gross assets, recognizing the complex funding needs that are often unmet by traditional banks and online-only lenders. It primarily employs cashflow lending, accounting for about 75% of its new loans, to support businesses needing capital for growth or acquisitions.

Protect AI Secures $60m Series B to Bolster AI and ML Security Solutions

Protect AI, a trailblazer in AI and ML security, today announced the closure of its Series B funding round, amassing $60m.

This significant investment was led by Evolution Equity Partners, with contributions from 01 Advisors, StepStone Group, Samsung, and returning investors Acrew Capital, boldstart ventures, Knollwood Capital, Pelion Ventures, and Salesforce Ventures.

The company’s mission is focused on securing AI and ML systems against unique security risks. With an array of products from traditional ML models to LLMs, Protect AI’s security posture management platform is at the forefront of the industry, offering a holistic approach to AI security.

The fresh capital will be used to fuel innovation and enhance Protect AI’s capabilities. The funding will support the expansion of customer success and sales teams, boost research and development, and strengthen channel programs. This strategic financial boost aims to further cement Protect AI’s position as a leader in the AI security market globally.

Octane secures $50m for market expansion and digital enhancements

FinTech Octane Lending has successfully closed its Series E funding round, raising $50m in new equity capital.

The latest funding effort brings Octane’s total equity funding to $242m. The funding was led by Valar Ventures with significant participation from Upper90, marking a distinctive round as it comprised solely of existing investors.

These stakeholders have opted to increase their investments, reinforcing their confidence in Octane’s business model and future prospects.

Savvy Wealth raises $15.5m to revolutionise wealth management tech

Savvy Wealth, has raised an additional $15.5m as part of its Series A round, bringing its total raised to $26.5m.

The round was led by Canvas Ventures with participation from Thrive Capital, Brewer Lane Ventures, Index Ventures, The House Fund, and Alumni Ventures, according to the Coverager.

Savvy Wealth, founded in 2021 and based in New York, targets financial advisors with an integrated technology platform and sales and marketing automation. The startup has rapidly grown its team to 30 advisors who manage over $700m in client assets.

Levitate secures $15m Series D funding

Levitate, the innovative Happiness Platform, has successfully completed a $15m Series D fundraising round.

The round was spearheaded by Harbert Growth Partners, Northwestern Mutual Future Ventures, and Bull City Venture Partners, marking a significant endorsement of Levitate’s potential to reshape market interactions. This latest investment boosts Levitate’s total capital to $55m.

Founded in 2017, Levitate goes beyond traditional SaaS offerings by integrating various communication tools into a single platform. It allows businesses to manage emails, texts, social media interactions, and even direct mail, ensuring continuous engagement across multiple channels. The newly launched features further expand these capabilities, including website design, Google Review management, and blog content creation, all powered by an AI Assistant.

Cybersecurity innovator Aurascape AI secures $12.8m

Aurascape AI, a trailblazing cybersecurity firm, announced today that it has successfully closed an oversubscribed seed funding round, amassing $12.8m.

The round was led by Mayfield Fund, with significant contributions from Celesta Capital, StepStone Group, AISpace, and several notable industry figures, including Mark McLaughlin, the former Chairman and CEO of Palo Alto Networks.

Founded in 2023, Aurascape AI is setting out to transform the cybersecurity landscape. Leveraging groundbreaking AI innovations, the company aims to tackle the challenges heightened by the global shift towards extensive AI adoption in enterprise environments.

Guidehealth lands $14m seed round with backing from Memorial Hermann and key investors

Guidehealth, a burgeoning HealthTech company, has announced a successful seed funding round, raising $14m.

The funding was spearheaded by the non-profit Memorial Hermann Health System in southeast Texas, with significant contributions from entrepreneur Sidd Pagadipati and other prominent healthcare investors and industry leaders, according to InsurTech Insights.

The $14m seed funding round, supported by Memorial Hermann Health System, aims to enhance the care coordination capabilities of Guidehealth.

Rich Data expands AI lending solutions with $9m investment

Rich Data, an Australian-based AI decisioning platform for business and commercial lenders, has recently secured a $9m investment.

According to IBS Intelligence, the funding comes from Acorn Capital, known for its focus on emerging companies.

This investment marks a strategic move to accelerate RDC’s expansion efforts into North America, a region where the demand for sophisticated AI solutions is significantly growing. Additionally, the funds will bolster RDC’s standing as a premier provider of AI decisioning platforms within the global banking sector, further enhancing its capability to innovate and deliver top-tier AI solutions to financial institutions.

Punch secures $7m seed funding to enhance stock trading platform

Punch, a burgeoning stock trading platform, has successfully garnered $7m in a recent seed funding round.

This financial injection combines both debt and equity components, according to a report from Money Control.

The round was led by an impressive consortium of investors including Stellaris Venture Partners, Susquehanna Asia VC, Prime Venture Partners, and Innoven Capital.

Additionally, notable angel investors like Kunal Shah, CEO of Cred; Vatsal Singhal, co-founder of Ultrahuman; and Nitish Mittersain, CEO of Nazara, also contributed to the funding.

Walnut raises $4.6m to revolutionise embedded insurance distribution

Walnut, an innovative company in the insurance distribution sector, has successfully closed a $4.6m funding round.

The funding round was led by NAventures, the corporate venture capital arm of National Bank of Canada, with additional participation from TELUS Global Ventures, Diagram Ventures, Portage, and Highline Beta, according to FF News.

This investment marks a significant milestone for Walnut, as it looks to accelerate its efforts to modernise and streamline the insurance distribution landscape.

Walnut’s platform leverages cutting-edge technology to embed insurance products directly into the services of enterprise businesses and financial institutions.

Chaiz bags $3.7m to expand its vehicle protection services

Chaiz, an Austin-based marketplace for extended car warranties, has raised $3.7m in seed funding as it looks to expand its coverage options.

The round was led by ResilienceVC, with participation from Anker Capital, Automotive Ventures, Everywhere Ventures, FJ Labs, Monte Carlo Capital, Never Lift Ventures, RedBlue Capital, and Springtime Ventures, according to the Coverager.

The Texan firm is set to utilise the funds to bolster its product to include recreational vehicles (RVs), motorsports, and home appliances. This expansion aims to broaden Chaiz’s market reach and provide comprehensive protection solutions for a wider range of consumer needs.

Multi-asset platform Mintos raises €3.1m through Crowdcube

Mintos, a multi-asset investment platform, has announced the closure of a remarkably successful crowdfunding campaign via Crowdcube.

According to FinTech Finance, the campaign drew an impressive €3.1m from over 3,300 backers in just two weeks, marking it as the second largest of its kind in the EU this year.

The funding round commenced with a bang, as Mintos reached its initial €1m goal within the first 40 minutes, indicating robust investor enthusiasm. The momentum didn’t wane, as the campaign saw consistent participation from across Europe, culminating in the substantial €3.1m total.

FINQY secures $2m to boost FinTech innovation in India

FINQY, an innovative Indian FinTech founded in 2019 by entrepreneur Manish Aggarwal, has announced a new funding round of $2m, according to a report from IBS Intelligence.

The company, distinguished by its technology-driven solutions for financial distributors, focuses primarily on insurance, credit cards, and loans.

FINQY operates with a vision to revolutionize how financial products are sold, making complex choices more navigable for consumers. Its platform serves over 100 financial and banking partners, enhancing customer engagement and facilitating informed choices, thereby indicating a major shift in the industry’s approach to financial services.

Inscora secures $2m funding to revolutionize cyber insurance for brokers

Inscora, a Montreal-based startup, has secured $2m in funding to enhance its cyber insurance solutions.

The company specializes in automated cyber risk assessment and sales enablement tools for cyber insurance brokers.

The funding round was led by Luge Capital, accompanied by Desjardins Capital, Accelia Capital, Inovia Capital, and angel investors from the cybersecurity industry. This financial backing marks a significant step forward for Inscora as it seeks to expand its innovative platform.

Graceview secures $1.5m investment to enhance AI-driven compliance

Graceview, a pioneering legal generative AI company, recently announced the successful closure of a $1.5m funding round.

The investment round was spearheaded by Patrick Linton, a prominent Singapore-based entrepreneur, alongside a consortium of tech founders and investors.

Graceview is renowned for integrating AI, machine learning, legal knowledge, and data analytics to deliver cutting-edge solutions. Their platform offers real-time insights into compliance threats and opportunities, combining the rapid response capabilities of generative AI with the expertise of senior lawyers. This synergy ensures a streamlined, continuous compliance process that is both effective and cost-efficient.

United Fintech gains pivotal investment from Standard Chartered

United Fintech Group, headquartered in London, has announced a significant investment from Standard Chartered to advance its digital transformation initiatives.

United Fintech specializes as a neutral Digital Transformation platform, acquiring and partnering with FinTech companies within the capital markets sector to create a comprehensive FinTech hub. This hub facilitates collaboration among banks, hedge funds, and asset managers by innovating with other leading technology providers.

Scamnetic raises funds to combat digital fraud with AI

Scamnetic, a trailblazer in the RegTech industry, has successfully closed a major funding round.

This round marks a significant milestone for the company, which specialises in leveraging advanced artificial intelligence to protect users against a wide spectrum of digital scams.

The recent funding initiative attracted a variety of prestigious investors, eager to support Scamnetic’s innovative approach to fraud prevention. The exact amount raised has not been disclosed, but sources confirm it is substantial, underscoring the market’s confidence in Scamnetic’s technology and its potential to reshape scam detection.

AutoComplete secures funding to enhance insurance solutions

AutoComplete, a firm which helps car dealerships offer insurance to their customers, has closed a financing round.

The SAFE-structured capital raise. This round saw participation from Bain Ventures, FM Capital, Presidio, and several strategic dealership group investors, including AutoNation Inc., Butler Automotive Group, Flow Automotive, Ken Garff Automotive Group, Mills Automotive Group, OREMOR Automotive Group, and Pohanka Automotive Group, according to the Coverager.

Founded in 2021, AutoComplete is led by Ahmed Khaishgi, who previously co-founded and sold product protection company SquareTrade to Allstate in a $1.4bn deal.

Qardy’s lending platform for MSMEs attracts significant pre-seed capital

Qardy, the first digital lending marketplace in Egypt and the MENA region, has successfully closed a seven-figure pre-seed investment round.

According to MSN, the funding round included contributions from White Field Ventures, Vastly Valuable Ventures, and several angel investors.

The startup, launched in late 2022, has quickly made its mark by attracting over 6,000 corporate clients. To date, Qardy has facilitated loan transactions surpassing $12m.