This week has been one for the heavyweights, with the headlines being filled with decacorns and unicorns alike in the US.
The biggest headline of the week has been that Chime has become the US largest consumer-focused FinTech platform after a $485m Series F put its valuation at $14.5bn. This make the largest in the world, which is impressive due to it only having a $1.5bn valuation 18 months ago. The FinTech growth has been rapid and shown that there is a huge opportunity for digital banks in the US.
Last month, Robinhood was the one that had claimed that title, after its $200m Series G funding round increased its valuation to $11.5bn. While it might have lost its position at the top of US consumer-focused FinTechs, it is not sitting by. The investor has extended the G round, increasing its total to $660m.
While both of these companies have become some of the highest valued FinTechs in the world, the leader in the US market is still payments software developer Stripe. The FinTech giant is currently valued at around $35bn. Funding in the US FinTech space is attracting a lot of capital. Data from KMPG states it hit record heights in 2019, with a colossal $59.8bn deployed into the country FinTech space. The question is whether Chime and Robinhood are overvalued or are signs of what is to come in the country.
The coronavirus brought into question of whether FinTech companies would be able to raise capital this year or if they would struggle. It is not just Chime and Robinhood suggesting the market will be fine, with a number of unicorns making the headlines.
US-based Greenlight Financial Technology, a FinTech educating children about finances, was the latest in the growing list of unicorns. The company reached a $1.2bn valuation after the close of a $215m Series C. The all-in-one money management platform offers a debit card for kids so they can spend their money as they wish. Parents can top up money on the card through the app, manage chores and set flexible spend controls.
Chime, Robinhood and Greenlight are all in the WealthTech sector, and their big deals could help keep funding levels in the space in line with previous years. Since 2015 there has been a total of $29.5bn invested into WealthTech companies around the world, across 1,797 transactions. Funding hit a record high last year, with $8.2bn being invested into 378 companies; however, the first half of 2020 suggests the sector will fall short of this. If funding volume in the second half of 2020 matches H1, the sector will have its worst year for investment since 2017. Chime, Robinhood an Greenlight might have helped stop this.
Another US FinTech unicorn to raise capital this week was small business insurance provider Next Insurance has scored $250m in its Series D round, increasing its valuation to $2bn. Next Insurance has helped over 100,000 customers get access to small businesses and is currently available to 1,300 types of businesses in all 50 US states.
Bright Health is another insurance firm to close a huge round this week, bagging $500m in its Series E. The round puts its total capital raised to $1.5bn. It is unclear what the company valuation is, but in 2018 the InsurTech was reportedly valued ay $950m.
While this week has clearly been a week for FinTech giants, companies of all sizes raised capital. Here is a rundown of all 30 deals.
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Newly named decacorn Robinhood extends its Series G round to $660m
Newly crowned decacorn Robinhood has reportedly jumped straight back in the fundraising market to increase its Series G round to $660m. The retail investment platform originally closed its Series G round on $200m last month, which had brought its valuation to $11.7bn. It has now extended the round by an additional $460m, according to a report from Reuters. The fresh equity was supplied by Andreessen Horowitz, Sequoia, DST Global, Ribbit Capital, 9Yards Capital, and D1 Capital Partners, it said. This extra capital will help it to improve its core product and customer experience as well as implementing new features such as cash management and recurring investments.
Insurance platform Bright Health closes $500m Series E to support geographic growth
Health insurance company Bright Health has closed its Series E round on $500m, which brings its total capital raised to $1.5bn. The round was supported by Tiger Global Management, T. Rowe Price Associates, Blackstone, NEA, Bessemer Venture Partners and Greenspring Associates. The funds are ?earmarked for growth and diversification, as well as geographic expansion efforts.
Chime said to grow valuation by 900% in 18 months to become US most valuable consumer-focused FinTech
Chime has reportedly become one of the world highest valued FinTech companies after reaching a staggering $14.5bn valuation. It achieved this accolade after the close of its $485m Series F round, according to a report from CNBC. The rapid growth of the challenger bank looks to represent the strong growth of its platform, which has seen it triple its transaction volume and revenue this year.
InsurTech unicorn Next Insurance scores $250m in its Series D
Next Insurance, which supplies small business insurance, has closed its Series D on $250m, increasing its valuation to $2bn. The equity injection was led by CapitalG, with other backers including FinTLV and Munich RE Group. Funds will be used to increase the size of its team by 50% by the end of the year. The InsurTech also hopes to hire 200 new employees over the next 12 to 18 month. There are six policies on offer, including general liability, professional liability, commercial auto and workers compensation.
Kid-focused money app Greenlight joins the ranks of US unicorns
Teenager-focused FinTech platform Greenlight Financial Technology has reached a $1.2bn valuation after the close of a $215m Series C. This fresh equity will help the FinTech extend its reach and release an updated version of its app, as well as new investing tools for kids The all-in-one money management platform offers a debit card for kids so they can spend their money as they wish. Kids can also use the app for lessons in earning, saving, spending and more. Canapi Ventures and TTV Capital led the investment, with capital also coming from BOND, DST Global, Goodwater Capital, Fin VC and Relay Ventures.
Hot off the heels of its former investment SpotOn Transact secures $60m in its Series C round
Payments software developer SpotOn Transact has secured $60m in its Series C round, just six months after it closed its Series B. DST Global led the round, with participation also coming from Dragoneer Investment Group and Franklin Templeton. Small and medium-sized businesses can use SpotOn to accept payments through point-of-sale terminals. The FinTech will use the capital to build new products and increase its go-to-market efforts.
Petal continues its ambition of helping people build credit scores after closing Series C round
Petal, which aims to help people to build credit, has scored $55m in its Series C so it can help more people in these tough times. The investment will help it “double down on its mission†of supplying people with honest, simple and responsible credit. The FinTech helps people to build credit through a Visa credit card that anyone can use, regardless of having used credit before. Investors to the round include Valar Ventures, Rosecliff Ventures, Afore Capital, RiverPark Ventures, Great Oaks Venture Capital, GR Capital, Nelstone Ventures, Abstract Ventures, Ride Ventures, The Gramercy Fund, Adventure Collective, Starta Ventures and NFL star Kelvin Beachum, Jr.
Accounts Payable company MineralTree scores $50m in its Series D round
Accounts Payable and payments automation software developer MineralTree has scored $50m for its Series D round. This investment was backed by Great Hill Partners, .406 Ventures and Eight Road Ventures. The announcement came alongside the FinTechs acquisition of Insp. yrus and Regal Software. Through the fresh capital and acquisitions, MineralTree is looking to deepen its product capabilities to reach a larger share of the middle market and enterprise market. The FinTech offers an end-to-end accounts payable automation solution that helps reduce costs by 75% and mitigate fraud and risk.
Ripjar bags $36.8m Series B investment round
Data intelligence company Ripjar has closed its Series B round on $36.8m. The equity was supplied by Long Ridge Equity Partners. With the fresh funds, the RegTech will increase product development and push the expansion of its platform. Plans also include bolstering the sales and marketing presence in Asia, North America and Europe, and support its current and future clients. Through AI technology, Ripjar helps institutions and government agencies address criminal threats including money laundering, fraud and terrorism.
WealthTech startup NextCapital closes $30m round
Personal finance app NextCapital has netted $30m in its growth funding round. Francisco Partners credit investment division FP Credit led the investment, while other commitments came from Oak HC/FT and IA Capital Group. NextCapital has the aim of helping everyone successfully retire. Its platform supplies users with a host of financial planning, advice and managed account tools to help people better understand their finances. With the fresh equity funds, the company is looking to increase the rollout of its platform and expand its offering.
Alternative SME lender Uncapped closes $26m investment round
Small business lending startup Uncapped has collected $26m for its latest funding round, which was made up of both debt and equity. Mouro Capital led the round, while other commitments came from All Iron Ventures, Global Founders Capital, Seedcamp and White Star Capital. There were also a handful of angel investors joining the round. ?Uncapped enables businesses to access growth finance for a flat fee as low as 6% a day. No credit check or business plan is required, with the business owner simply connecting their existing sales and marketing accounts to Uncapped revenue prediction engine.
Marco Financial secures $26m to help fund SMEs in Latin America
Marco Financial, the financing platform built for small and medium-sized Latin American exporters, has bagged $26m in funding and credit. The funding includes an equity round led by Struck Capital and Antler as well as a credit facility underwritten by Arcadia Funds. The FinTech claims to fill a ?financing gap in Latin America by providing fast and easy financing to Latin American SME exporters selling to US buyers. The company will use the new cash influx to address the $1.5trn global trade finance gap that disproportionately impacts SMEs businesses.
TrueLayer bags $25m in Series C round
Open banking company TrueLayer has added another $25m to its coffers by tapping its existing investors for another cash injection. Investors Anthemis, Connect Ventures, Northzone and Temasek returned to offer TrueLayer their ongoing support by topping up the RegTech startup accounts in the Series C round.
InsuranceDekho said to receive $20m investment to increase online presence
Online insurance comparison platform InsuranceDekho has received a $20m investment from its parent company GirnarSoft to increase branding. The capital injection will also be used to strengthen the InsurTech tech, product and sales teams, as well as grow its online presence, according to a number of reports in the media. India-based InsuranceDekho helps consumers to easily compare several insurance policies to find the policy that best matched their needs. Users can compare, car, two wheel and health insurance policies.
Retail investment platform Syfe scores $18.6m Series A
Singapore-based wealth manager Syfe has closed a SGD $25.2m ($18.6m) in its Series A round, which was led by FinTech-focused investor Valar Ventures. Other investors were Presight Capital and Unbound. The FinTech app aims to make investing available to everyone and not just an option for high-net-worth individuals or institutions. Proceeds of the round will enable the FinTech to enter new markets, creating new products and services, hiring more staff, and enhancing the existing technology.
EasySend bags $16m in new funding as Covid-19 boosts demand for its services
EasySend has netted $16m in new funding to make insurers and financial services firms digital journeys easier as the coronavirus pandemic increases the demand for its services. Hanaco acted as the lead investor, with additional contributions coming from Intel Capital and an unnamed backer. Equity from this round will let EasySend double the size of its team and grow its customers in the US, Europe, and Asia.
CloudMargin collects $15m in its Series B to support US and Asia growth
CloudMargin, a provider of collateral and margin management tools, has scored $15m in its Series B round. Deutsche Börse, Deutsche Bank, Citi and a number of unnamed Tier-1 global investment banks supplied the investment capital. London-based CloudMargin has created a cloud-based collateral management workflow tool that helps brokerage firms, banks, asset management firms, pension funds and insurance companies. Its technology centralises, automates, connects and optimises collateral management.
Exabel brings its seed round total to $12m following the close of its third stage
AI-powered analytics and data platform Exabel has closed its third seed round, which has brought the total funding to $12m. There were 17 existing Exabel backers and 11 first-time investors to participate in the round. Its analytics platform provides investment professionals with the ability to leverage data to improve their strategies and decision making. Funds will be used to enhance its commercial functions across Europe and North America, as well as build strategic partnerships with data vendors.
Brazil-based Zoop secures $10.9m in its funding round
FinTech software developer Zoop has secured BRL $60m ($10.9m) in a funding round to support the rollout of new services. Movile, a Latin America-based investment firm, served as the lead investor of the round. Zoop offers companies with a range of technology services to create their own branded financial services, which hold up to regulatory standards. This equity injection will aid the launch of new digital payments, banking and credit tools for customers.
MarketFinance receives ?10m grant to issue more loans
Working capital lender MarketFinance has netted a ?10m grant, hot off the heels of a ?50m loan from Viola Credit. The new grant has been supplied by the Capability and Innovation Fund (CIF), which is run by Banking Competition Remedies Ltd (BCR). Plans for this grant are to “bring more choice and competition to the business lending industry.†This includes extending its lending services to reach sole traders, and providing more finance options. The company claims is will match the ?10m grant with money from its own funds.
Laika closes its equity financing round on $10m
Data security and compliance-as-a-service platform Laika has raised $10m in a round, which was led by Canapi Ventures. Other investors were Bain Capital, NYCA Partners and Third Prime, as well as founders, CEOs and CTOs at Plaid, GLG, Flatiron Health, Shutterstock, and Quovo. The RegTech software platform automates processes within the audit management and compliance workflows, such as audit preparation, due diligence, vendor management and more. Equity from the round will help grow the team and the platform capabilities.
WireBarley closes $10m investment to support regional growth
South Korean FinTech platform WireBarley has secured KRW10bn ($10m) in its Series B investment. Investors included Magna Investment, Shinsegae I&C and Dt & Investment. The FinTech offers contactless financial services through its mobile app and web platform in South Korea, New Zealand, Australia, Canada and the US. Users can send money to 21 recipient countries. Funds will help WireBarley deepen its global remittance service capabilities for individual customers, expand into the B2B space, develop and launch new product, and expand into Hong Kong in October. Its new products will include a multi-currency wallet service and additional banking services.
Exizent closes ?3.6m round to help reduce stress of bereavement
Scottish FinTech startup Exizent, which aims to transform how the financial services industry handles bereavement, has closed its latest investment round on ?3.6m. The only named investor of the round was global platform-as-a-service unicorn FNZ. Exizent was created to help reduce the stress for family members experiencing loss and offers a platform that connects data, services and the network of people involved when someone passes away
Cybersecurity startup Cerby closes $3.5m as it looks to combat “Shadow ITâ€
Cerby, which claims to be a stealth cybersecurity company helping businesses leverage “shadow ITâ€, has closed its seed round on $3.5m. The round was led by Bowery Capital, with other backers including AV8 Ventures, Global Founders Capital and Incubate Fund US. With the round under its belt, it aim to increase product development and hiring. Cerby claims to embrace the trend of end users increasingly choosing their own work applications without IT and security oversight – this is called Shadow IT.
Zumo surpasses crowdfunding target as it looks to capitalise on Scotland growing FinTech sector
Scotland-based Zumo has stormed past the target of its crowdfunding campaign to reach ?1.5m. The initial target of the fundraise, which is on the Seedrs platform, was set at ?1.1m. Zumo is raising the funds at a pre-money valuation of ?10.5m. Zumo is a mobile wallet and payments platform that has the goal of bringing decentralisation and cryptocurrencies to people everywhere
AI-powered InsurTech i3 Systems said to raise $1.5m in funding
i3 Systems has supposedly netted $1.5m in a funding round in a round led by Unitus Ventures, according to a report from LiveMint. Other backers include Reliance Industries CFO Alok Agarwal and Mahindra Partners president Zhooben Bhiwandiwala. i3 Systems will use the funds to increase the development of its technological capabilities and boost adoption of its services. i3 Systems currently offers two products, an underwriting solution and a claims processing system.
Boring Money raises more than double the target of its crowdfunding campaign
Financial advice website Boring Money has smashed the target of its crowdfunding platform by more than double. The company has reached ?762,157 on the sale, beating the initial ?300,000 target. ?There is a pre-money valuation of ?8m and each share costs ?4.58. The FinTech platform self-stylises itself as the financial lovechild of TripAdvisor and Which? by helping the public receive investment and pension guides.
Sweep said to raise ?456,000 in its funding round
Expenses and travel management app Sweep has allegedly received a ?456,000 grant to support its growth and innovation. This was a grant from the UK government that will empower Sweep to increase the development of its robotic process automation technology and help more SMEs cut costs.
?China-based Trusfort closes Series C round
Cybersecurity platform Trusfort has reportedly raised “hundreds of millions of Yuan†for its Series C. Private equity firm Cathay Fund, who was joined by Broadband Capital, Yunfeng Fund, SIG, Haoxiang Capital and Red Dot Venture Capital, according to a report from 36kr. The China-based company provides device authentication, terminal security, identity recognition and authentication protocols.
?Kashier Payments said to raise a seed investment
Egypt-based Kashier Payments has reportedly closed a seed round led by Glint Ventures. This capital injection will be used to increase Kashier go-to-market strategy, expand its team and release more products, according to a report from Wamda. The FinTech has built a payments platform so companies can access payment processing by integrating a selection of tools. Its features include subscription payments, invoices, recurring payments and general online transactions.
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