Finova Financial’s New Fundraising Process Leverages Cryptocurrency to Serve Non-Accredited Investors

Alternative lender Finova Financial introduced a new product this week that will offer non-accredited investors access to regulated public securities offerings.

The new offering is called the JOBS Crypto Offering (JCO) and will allow investors to use cryptocurrency to invest in equity ownership of previously privately-held companies. The JCO is a type of initial coin offering (ICO) in which tokens that represent ownership shares of capital stock are tracked on a blockchain and are sold according to either a registration statement filed under the Securities Act or a transaction that’s exempt from registration under the Securities Act.

“I liked the idea of the ICOs when they were first introduced as they looked like an exciting way for startups to raise funds from small investors, but I had concerns about regulatory compliance practices, especially for tokens that are clearly securities,” said Finova CEO and brainchild of the JCO, Gregory Keough. He said that he created the JCO “to open the doors of opportunity for the small investor.”

Here’s how JCOs work– companies in search of financing issue securities to the general public in exchange for cryptocurrency or other funds. Ownership of these securities is represented by tokens, or blockchain entries. As for what’s next, Keough described his vision for JCOs saying, “I envision the Tokens sold in JCOs being listed on an Alternative Trading System, creating a liquid security and providing companies with an alternative to a traditional initial public offering.”

Currently, there is no word on an expected launch date for the JCO.

Finova Financial was founded in 2015. At FinovateSpring 2016, Keough debuted Finova’s Car Equity Line of Credit (C-LOC), a product that enables consumers to take loans from the equity in their car. Later that year, the company raised $52.5 million in combined equity and debt.

Finovate Alumni News

On Finovate.com

  • Credit Karma Teams with American Express to Offer Advance Tax Refund.
  • Insuritas Launches i-Insure Platform with 42 P&C Carriers.
  • Finova Financial’s New Fundraising Process Leverages Cryptocurrency to Serve Non-Accredited Investors.

Around the web

  • Superbcrew.com interviews BRIDGEi2i Analytics Co-founder and CTO Pritam Kanti Paul.
  • Entrepreneur names Kabbage, Cardlytics, BlueVine among top 360 best entrepreneurial companies in America.
  • Bill.com launches Accountant Partner Program.
  • Global Debt Registry earns spot in IBM mentoring program for blockchain app developers.
  • Moven founder and CEO Brett King discusses the AI race between China and the U.S. on CNBC’s Closing Bell.
  • Wall Street Journal leverages Quid to spot fraudulent entries on FCC website during net neutrality debate.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Spring Forward: FinovateSpring 2016 Alums Top $200 Million in Funding

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With FinovateSpring 2017 coming next month, we thought we’d take a look back at how the alums from our last spring conference a year ago have fared on the fundraising front.

And after a quick review, it seems that investors continue to be interested in the innovations of Finovate alumni. In fact, even without the $1.8 billion Golden Gate Capital spent on its acquisition of Neustar late last year ($2.9 million with debt included), the alums from FinovateSpring 2016 have had an impressive year of fundraising. While the specific funding amounts for a number of alums were not officially disclosed, our review shows more than $200 million raised by 20 FinovateSpring 2016 alums over the past year alone.

Among the bigger deals of the past year, the $72 million raised by OurCrowd stands out. OurCrowd, a crowd investing platform for venture capital, was founded in 2013 and is headquartered in Jerusalem, Israel. With a growing network of more than 17,000 investors, OurCrowd has raised $400 million on its platform, providing funding for 110 companies. Also noteworthy was the $29 million raised by FinDEVr/Finovate alum NYMBUS in two separate fundings in August and February. NYMBUS is an innovator in developing advanced, cloud-based core banking systems. Known as a “bank in a box” NYMBUS technology gives smaller banks and credit unions the ability to compete with larger FIs when it comes to providing customers with the latest digital banking services.

So to help get you ready for FinovateSpring 2017, here’s a list of the investments scored by alums from last year’s conference. And remember you can see live demos from all 20 of our fundraising FinovateSpring 2016 alums in our Video Archives.

February 2017

  • FinDEVr New York Alum NYMBUS Announces $16 Million in New Funding
  • Qumram’s Regtech Offering Lands $1.49 Million
  • Empyr Raises $3 Million in Funding

January 2017

  • ForwardLane Raises $1.1 Million in New Funding
  • Earnix Receives $13.5 Million in Growth Capital from New and Existing Investors

December 2016

  • Cyberfend Acquired by Akamai Technologies for Undisclosed Amount

November 2016

  • Sezzle Raises Seed Funding Ahead of Shopify Debut ($1.85 million)
  • Neustar Acquired by Golden Gate Capital for $1.8 Billion (including debt $2.9B)

October 2016

  • ThreatMetrix Picks Up $30 Million in Growth Capital from Silicon Valley Bank (debt financing)

September 2016

  • OurCrowd Pulls In $72 Million
  • WealthForge to Raise $2.5 Million in New Convertible Note Offering
  • OneVisage Earns Seed Funding in Round Led by Polytech Ecosystem Ventures (amount undisclosed)

August 2016

  • CUneXus Closes $5 Million Series A
  • Automobile Title Lending Platform Finova Financial Raises $52.5 Million
  • NYMBUS Raises $12 Million in Round Led by Vensure Enterprises

July 2016

  • Linqto Announces New Venture Funding from Keiretsu Capital (amount undisclosed)

June 2016

  • NICE Funding! CallVU Raises $3 Million
  • Civic Announces New Debt Financing from Blockchain Capital (amount undisclosed)
  • savedroid AG Completes €1 ($1.1 USD) Million Seed Round; Announces Beta Launch
  • Cyberfend Earns Undisclosed Non-Equity Assistance from MasterCard Start Path Global Program.
  • BanQu Secures $100,000 in Financing (convertible note)

Are you a FinovateSpring 2016 alums whose funding we missed? Send us an email research@finovate.com and we’ll be happy to make the update.

H2 Ventures and KPMG Unveil 2016 Fintech 100

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H2 Ventures and KPMG have released their Fintech 100 roster for 2016. Divided equally between 50 “industry leaders” and 50 “emerging stars,” the roster features 17 Finovate/FinDEVr alums in the first category, and 10 in the second. Calling its roster a “celebration” of the most compelling innovators in this “bold new space,” the H2 Ventures/KPMG 2016 Fintech 100 covers a variety of different shades of fintech:

  • Lending (32 companies)
  • Payments (18 companies)
  • Insurance (12 companies)
  • RegTech (9 companies)
  • Data & analytics (7 companies)
  • Wealth management (6 companies)
  • Blockchain (5 companies)
  • Digital currency (5 companies)
  • Capital markets (3 companies)
  • Crowdfunding (2 companies)
  • Accounting (1 company)

And here is a look at how Finovate/FinDEVr alums fared. Earning recognition among the companies in the Leading 50 group are:

Also noteworthy in the Leading 50 are Ant Financial, which acquired Best of Show-winning EyeVerify in September 2016, and Avant, which acquired Finovate alum ReadyForZero in the spring of 2015.

Additionally, Finovate/FinDEVr alums earning spots in the Fintech 100’s 50 Emerging Stars roster were:

The H2 Ventures/KPMG report includes a geographic breakdown of the 2016 Fintech 100, as well as a set of key takeaways such as increased geographic diversification, the return of lending, the continued ascent of Insurtech, and the appearance of RegTech. The report also notes that China now has four out of the top five companies in the report’s top 10, and eight companies in the top 50. The report says funding for fintech “continues to rise,” and its authors cite more than $14 billion in capital was raised by the Fintech 100 in the past year.

Automobile Title Lending Platform Finova Financial Raises $52.5 Million

FinovaFinancial_homepage_August2016

In a round led by a host of Silicon Valley and international investors, auto-title lending-platform developer Finova Financial has raised $52.5 million in combined equity and debt. The investment is one of the largest initial investments in a fintech company and will be used to help grow what Finova calls “the industry’s first all-digital lending platform serving the auto-title loan-marketplace.”

Finova Financial CEO Gregory Keough said that his company and its technology were about more than just helping auto buyers get the funding they need while avoiding the “high interest rates, inconvenient application processes and restrictive terms” he said are all too common in the auto title lending business. “We see Finova Financial as being an advocate for consumer financial well-being through improved access to credit, better repayment terms and lower costs,” Keough said.

FinovaFinancial_stage_FS2016b

Finova Financial CEO Gregory Keough demonstrated the Car Equity Line of Credit (C-LOC) at FinovateSpring 2016 in San Jose, California.

Investors participating in the round included 500 Startups, the UAE-based Al Hamra Group, Metamorphic Venture, MHS Capital, and Refractor Capital. Individual investors included Sam Hodges, co-founder and managing director of Funding Circle, and Jake Gibson, cofounder of NerdWallet. The credit facility was provided by CoVenture.

Finova Financial’s Car Equity Line of Credit enables borrowers to leverage the equity in their car to obtain affordable, same-day, emergency cash funding. Finova provides instant approval decisions with up to 12-month terms, and customers can apply for loans as well as make payments online or via mobile device. In addition, the company has partnered with 32,000 retail outlets in the U.S. to facilitate in-person payments. Finova notes that 70 million underserved Americans spend $138 billion a year in fees and interest on alternative financial products and says that auto title loans in particular charge upwards of 300% in interest. In contrast, Finova Financial’s C-LOC charges a maximum APR of 30%, and all fees, such as DMV lien fees, are rolled into the life of the loan.

Founded in 2015 and headquartered in West Palm Beach, Florida, Finova Financial demonstrated its Car Equity Line of Credit (C-LOC) solution at FinovateSpring 2016.

Finovate Alumni News

On Finovate.com

  • Interactions Garners $56 Million in its Largest Funding Round Yet
  • Automobile Title Lending Platform Finova Financial Raises $52.5 Million
  • Check out this week’s FinDEVr APIntelligence.

Around the web

  • Kontomatik’s Konstantin Rabin shares his thoughts on successful lending in The Paypers.
  • Forbes features Jon Stein, Betterment CEO and cofounder.
  • San Diego Business Journal names eMoney Advisor one of the “Best Places to Work in San Diego.”
  • Envestnet | Yodlee launches Transaction Data Enrichment to offer transparency into transactions.
  • TradeRiver Finance reaches milestone of lending GBP100 million to U.K. businesses.
  • Portland Business Journal takes a look inside Simple’s new office.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

FinovateSpring Sneak Peek: Finova Financial

FinovaFinancialHomepage

FS2016-wdateA look at the companies demoing live to 1,500+ fintech professionals on May 10 & 11. Register today.

Finova Financial, a socially responsible lender, provides fast, affordable loans based on the equity in your car to the 70 million financially underserved Americans.

Features:

  • Costs 70% less than the current national average
  • Instant access to capital and a 12-month pathway back to financial health
  • Online/mobile 24×7

Why it’s great
Finova provides a same-day solution for emergency expenses to the millions of Americans who spend $5.3 billion annually on title loans at a cost 70% less than the current national average.FinovaPresenter1

Presenter: Gregory Keough, CEO
Keough is an executive with global experience. He is a serial entrepreneur with an impressive track record of innovation in the technology and financial services arena.
LinkedIn

Finovate Alumni News

On Finovate.com

  • “TIO Networks Closes Purchase of Softgate Systems”
  • “Narrative Science Turns Business Intel into Data-Driven Stories”

Around the web

  • Top Image Systems inks a pair of banking process automation deals worth $700,000.
  • iSignthis brings its KYC technology to Chinese e-payment leader, YeePay.
  • WorkFusion and VirtusaPolaris team up to provide smart automation solutions for companies in banking and financial services.
  • Misys launches FinCloud, a new range of cloud solutions and global cloud environment.
  • Capgemini consulting services adds risk- and fraud-management technology from FICO.
  • Ignite Sales powering Regions Bank’s guided selling tool.
  • Ping Identity releases new Knowledge Center, a customer support and documentation portal

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.