44 Alums Populate CB Insights’ Fintech 250 List

This week, CB Insights unveiled its Fintech 250 list. The research outfit selected 250 emerging, private companies in 17 sub-sectors of fintech that are changing the face of financial services. The roster includes 44 Finovate and FinDEVr alums that were selected using CB Insights’ data-driven process that analyzes company momentum, market participation, funds raised, and investor quality.

The list is in alphabetical order.

Algomi

AutoGravity

Avalara

Behalf

Betterment

Blend

Chain

Coinbase

Credit Karma

Currencycloud

CurrencyFair

Fenergo

Financeit

Gusto (formerly ZenPayroll)

Juvo

Kabbage

Kensho

Kreditech

Klarna

LendUp

Moneytree

PayNearMe

Payoneer

Personal Capital

Plaid

Quantopian

Quovo

Revolut

Ripple Labs

Roostify

Signifyd

SocietyOne

Socure

Tink

Token

Tradeshift

Transferwise

TrueAccord

Trulioo

VATBox

Wealthfront

Xignite

Zooz

Zopa

PayPal Makes Strategic Investment in Online Lender LendUp

Is PayPal’s investment in online lender LendUp a hint that the underbanked may not remain the underserved for long? LendUp specializes in providing loans to borrowers who have been unable to secure credit from banks and credit unions. And with more than $111 million in equity funding – including this week’s undisclosed amount from PayPal, the San Francisco lending and financial education platform has even more capital to grow its business.

“We’re building our own technology to create new financial products and experiences for the 56% of Americans shut out of mainstream banking due to poor credit or income volatility,” LendUp CEO Sasha Orloff said. “Right on a mobile phone.”

Operating in 24 states, LendUp provides a suite of solutions geared toward providing credit to the underbanked and helping those with thin credit files or a poor credit history to build or rebuild their credit rating. The company’s LendUp loans provide short-term credit, typically as much as $500 for up to 30 days. LendUp’s L Card Visa, launched in 2015, is a no-security-deposit-required credit card for the underbanked with an annual fee between $0 and $60, and an APR between the low 20s and the low 30s. The company’s LendUp Ladder enables customer to earns points toward better borrowing rates by making timely loan repayments, completing financial education courses, and referring others to the service.

In addition to the strategic investment from PayPal, LendUp announced that former Lending Club CFO Carrie Dolan would join the company as a board advisor. Other major changes at LendUp including hiring Mandeep Walia – a former PayPal executive – as chief compliance officer, and adding former Lending Club executive Jordan Olivier as VP of Finance, and Karry Bryan, formerly of PwC, as VP and controller.

LendUp demonstrated its lending platform at FinovateSpring 2014, following the company’s Best of Show winning debut the previous year. Earlier this month, the company was named a Financial Health Leader by the Center for Financial Services Innovation. In May, LendUp expanded its L Card credit card, launched in 2015. And in March, the company received a credit facility worth $100 million from Victory Park Capital. LendUp was founded in 2011.

LendUp Gives the Underbanked What No Traditional Bank Will

Socially responsible lender LendUp is expanding its L Card credit card offering this week. The San Francisco-based company has built on its joint venture partnership with Beneficial State Bank to quadruple the availability of the L Card, a credit card for the underbanked community that is designed to help members establish their credit files and grow their scores.

Originally launched in April of 2015, the L Card boasts low fees, offers users incentives for paying off their balance early, and provides materials to boost their financial education. Unlike major credit card companies, LendUp presents credit card applicants with an instant decision. And in order to better build users’ credit scores, LendUp reports to all three major credit bureaus.

Further differentiating its credit card offering, LendUp doesn’t require a security deposit, has an annual fee of $0 to $60, and offers an APR that ranges from just under 20% to just under 30%. Even if a customer makes a late payment, LendUp will not raise the fee. In fact, late fees, which are capped at $7, are only issued after a 14-day grace period.

Sasha Orloff, LendUp co-founder and CEO said that LendUp and Beneficial State Bank are “completely aligned on the same North Star.” Orloff added, “Our partnership is a perfect example of bringing our house-built technology, product design, and educational experiences to bear for a similarly mission-driven bank and well-deserving consumers across the country.”

Though overall the card may be good for consumers, the introductory line of credit, capped at $300 to $1,000, could possibly lead to a high credit utilization ratio, which lowers consumers’ credit scores. However, the line of credit has the potential to double after a year of responsible use so if the company’s payoff incentives and financial education work as they are supposed to, it may actually help consumers in the long-run.

Founded in 2011, LendUp began offering loans specifically designed to help consumers build credit using education, gamification, and a transparent fee structure. The company’s CEO and Co-Founder, Sasha Orloff, and CTO and Co-Founder, Jacob Rosenberg, launched the RESTful API lending platform at FinovateSpring 2014, a year after winning Best of Show at FinovateSpring 2013 for debuting the LendUp Ladder. Named to the H2Ventures and KPMG Leading 50 category of the Fintech 100 list last October, LendUp received a $100 million credit facility from Victory Park Capital this spring.

Finovate Alumni News

On Finovate.com

  • nCino Helps Financial Institutions Benefit from Cloud Banking
  • LendUp Gives the Underbanked What No Traditional Bank Will

On FinDEVr.com

  • Check out this week’s FinDEVr APIntelligence

Around the web

  • BanQu teams up with Eastern Congo Initiative to launch secure data storage network for farmers.
  • TransferWise announces operational profitability and monthly revenues of £8 million.
  • Lighter Capital adds Former Silicon Valley Bank’s Head of Risk, Marc Verissimo, to its Board of Directors
  • Wells Fargo selects Uniken for accelerator program.
  • Wipro launches Nine Solutions to Accelerate Adoption of Blockchain Across Industry Sectors
  • Societe Generale partners with Open Bank Project to launch internal Open Banking Hackathon
  • South Carolina-based Community First Bank hires Insuritas to install and manage insurance agency.

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.

Finovate Alumni News

On Finovate.com

  • Check out sneak peeks from FinovateSpring demoing companies SpeechPRO, CallVU, ACH AlertnanoPay DefenseStorm, and SuperMoney.
  • InComm Partners with WeChat Pay Parent Tencent.

Around the web

  • PYMNTS.com looks at Payoneer and escrow service as a way to support B2B payments.
  • SelfScore launches Achieve Card to provide international students with access to credit.
  • New service from Azimo enables money transfers with just a phone number.
  • PYMNTS profiles LendUp’s target market focus.
  • Loan validation firm Global Debt Registry Adds Prosper to Network.
  • DemystData celebrates its one-year anniversary in Singapore by expanding its offices.
  • EyeLock receives patent for sequentially linking iris matching with facial imaging.
  • Wired gets into the algorithmic brains of Quantopian.

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.

LendUp Lands $100 Million Credit Facility

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Payday loan alternative startup, LendUp, announced this week it has received a $100 million credit facility. The financing comes from the company’s long-time partner, Victory Park Capital, and will be used to fund future loan growth. The San Francisco-based startup’s combined debt and equity now totals $325 million.

In addition to the financing news, LendUp also surpassed $1 billion across 3.3 million loan originations since launching in 2012. Sasha Orloff, LendUp CEO and co-founder said, “This is an important milestone for LendUp because it proves the viability and sustainability of the market opportunity for socially responsible lending.”

The company’s team of 200+ aims to help consumers rejected by banks find a safe alternative to payday lenders. LendUp’s flagship products include LendUp Loans, a short-term loan that lets users borrow up to $250 for 30 days; and LCard, a credit card made for those who struggle with credit. In 2016, these products helped borrowers save $55+ million in interest and fees (up from $16 million in 2015). LendUp also offers educational materials, such as free online courses, to give cardholders the information they need to make decisions about their financial future. These videos have been viewed more than 1.2 million times.

CEO Sasha Orloff debuted the company’s API at FinovateSpring 2014. The API exposes LendUp’s core to allow partners to leverage its platform. The company won Best of Show at FinovateSpring 2013 for debuting its product that helps the underbanked build credit. In October of last year, H2Ventures and KPMG placed LendUp in the Leading 50 category of its Fintech 100 list.

Finovate Alumni News

On Finovate.com

  • LendUp Lands $100 Million Credit Facility.
  • LikeFolio Begins Licensing Brand-Mapping Database.
  • Euronext Invests $10 Million in Algomi; Expands Joint Venture Agreement.

Around the web

  • Yoyo hires former PayPal GM Simon Moran as first VP of Commercial.
  • Fiserv expands its Florida contact and servicing center by 22%.
  • Trustly partners with UATP to enable online bank payments for airfare.
  • NICE extends real-time authentication across all voice channels.
  • The Asian Review covers Ayondo’s upcoming listing on the Singapore Exchange.
  • Signifyd wins Finance Monthly’s 2017 Fintech Award for Fraud.

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.

H2 Ventures and KPMG Unveil 2016 Fintech 100

h2_kpmg_2016fintech100

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.

LendUp Gets a Leg Up with $47 Million

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Payday lender-alternative LendUp landed $47 million in series C funding this week. Y Combinator’s growth fund, Y Combinator Continuity, led the round. Google Ventures, Thomvest Ventures, QED Investors, Data Collective, Susa Ventures, Radicle Impact, Bronze Investments, SV Angel and other angels also contributed.

The $47 million brings the company’s total funding to just over $110 million. LendUp will use the funds to build LCard, a credit card with a companion mobile app designed to help users build credit.

Founded in 2011, LendUp aims to help consumers rejected by banks find a safe alternative to payday lenders. The San Francisco-based company offers three main products:

  • LendUp Loans, a payday loan alternative that lets users borrow up to $250 for 30 days
  • LCard, a credit card made for those who have historically struggled with credit
  • Educational materials, free online courses to give cardholders the information they need to make decisions about their financial future

The company’s CEO Sasha Orloff told TechCrunch that the new round brings LendUp’s valuation “substantially higher than the last time.”

Cofounders CEO Sasha Orloff and CTO Jacob Rosenberg debuted the company’s API at FinovateSpring 2014. The API exposes LendUp’s core to allow partners to leverage its platform. The company won Best of Show at FinovateSpring 2013 for debuting its product that helps the underbanked build credit.

Finovate Alumni News

On Finovate.com

Around the web

  • NCR launches innovation lab at its new global headquarters in Atlanta, Georgia.
  • London-based BACB to replace its legacy IT systems with CorporateSuite from Temenos.
  • TransferTo integrates paysafecard as payment option within Safemoni app.
  • Slice launches browser add-on to send an email when the price of an item drops.
  • Kasasa now has 400 community FIs using its rewards account offering.

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.