Finovate Alumni News

On Finovate.com

  • TrueAccord Lands $22 Million to Humanize Debt Collection
  • Rising in the East: Asian Fintech Startups Shine in Showcase
  • BOKU to Raise $60 Million Ahead of London IPO

Around the web

  • UBS Card Center leverages AI technology from FICO to lower fraud write-offs.
  • D3 Banking adds new payment options, flexible card controls to its digital banking platform.
  • Thomson Reuters introduces new set of MiFID II reference data capabilities available on its data and analytics platform, DataScope.
  • Prosper Reports Third Quarter Growth; Closes $1.5 Billion of Securitizations in 2017
  • AngelList picks Quid as a top machine learning company.
  • Lighter Capital partners with Intuit to launch $15M fund for QuickBooks developers.
  • Blackhawk Network Expands Partnership with eBay to Provide B2B Gift Card Solutions

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.

With New Funding, Prosper’s Valuation Stands at $550 Million

U.S. peer-to-peer lending giant, Prosper has landed $50 million in a Series G funding round. The capital come from Hong Kong-based FinEx Asia and LPG Capital and raises the San Francisco-based company’s total equity funding to $410 million.

Prosper will use the financing to make strategic investments in the company’s platform and products. “This investment is a strong signal of confidence in our business fundamentals and the momentum we are seeing right now,” said David Kimball, CEO of Prosper Marketplace. “Over the past year, we’ve shown that we can build a sustainable business that continues to redefine the online lending experience for our borrowers and investors. We believe this partnership will open up additional opportunities for our business as we continue to grow.”

According to Lend Academy, Prosper’s valuation is now $550 million; a 70% drop from the company’s estimated 2015 valuation of $1.87 billion. However, Lend Academy also noted that Prosper’s decline aligns with competitor Lending Club’s valuation, which experienced a share price drop of 68% since April of 2015.

Marketplace lending as a whole has experienced a downturn in the past couple of years, and Prosper had to endure a stumbling block of its own in July of this year when it shuttered its Prosper Daily app. Aimed at prospective borrowers, the app was built from Prosper’s purchase of BillGuard in 2015 for $30 million.

Despite the setbacks, Prosper reported relatively strong second quarter performance this year, with $775 million in loan originations. This represents a 32% quarter-over-quarter increase and 74% year-over-year increase. Overall, the company has facilitated more than $10 billion in consumer loans over its platform since launching in 2006.

Prosper presented at FinovateSpring 2009 as well as the inaugural Finovate in 2007. Earlier this year, the company appointed Usama Ashraf as Chief Financial Officer and in November of 2016, selected David Kimball to succeed Aaron Vermut as CEO. Forbes interviewed Kimball in a feature this spring.

Finovate Alumni News

On Finovate.com

  • With New Funding, Prosper’s Valuation stands at $550 Million.
  • Tuition.io Raises $7 Million in Series B.
  • AutoGravity Teams Up with Hyundai Capital America.

Around the web

  • Infosys Finacle partners with ToneTag to leverage sound wave technology to drive contactless authentications and transactions.
  • PYMNTS interviews Jumio CEO Stephen Stuut on the challenge of combating cybercrime in “real time.”
  • Xero teams up with TradeGecko to help Singapore’s SMEs Go-Digital.
  • Bento for Business appoints Jeff Pomeroy to the role of Vice President of Product.
  • ThreatMetrix Announces Smart Authentication Platform.

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 Alums Among Top Investment Targets for Top European Banks

Earlier this year, CB Insights took a look at where fifteen of the top European banks were spending their investment dollars. The result is an interesting portrait of an industry appears very committed to three areas of fintech in particular: blockchain, financial services software, and Regtech. Of the 15 banks represented in CB Insights’ survey, all but one had invested in R3, the blockchain consortium, with ten banks investing in financial services software companies, and eight banks funding Regtech firms.

Also noteworthy is the presence of ten Finovate/FinDEVr alums among the investments. Symphony Software Foundation, an alum of our developer’s conference, FinDEVr, was the alum with the most support from among the 15 European banks. Santander was the bank with the broadest support among our alum community, backing six out of the 11 alums listed.

Kabbage (FinovateSpring 2015)

  • Founded in 2009
  • Headquartered in Atlanta, Georgia
  • Total Capital Raised: $488 million
  • Top European banks: Santander, ING

Personetics (FinovateFall 2016)

  • Founded in 2010
  • Headquartered in Tel Aviv, Israel
  • Total Capital Raised: $18 million
  • Top European bank: Santander

Prosper (FinovateSpring 2009)

  • Founded in 2006
  • Headquartered in San Francisco, California
  • Total Capital Raised: $355 million
  • Top European bank: Credit Suisse

Ripple (as OpenCoin, FinovateSpring 2013)

  • Founded in 2012
  • Headquartered in San Francisco, California
  • Total Capital Raised: $93.6 million
  • Top European bank: Santander

SaveUp (FinovateSpring 2014)

  • Founded in 2011
  • Headquartered in San Francisco, California
  • Total Capital Raised: $7 million
  • Top European bank: BBVA

SigFig (FinovateFall 2011)

  • Founded in 2007
  • Headquartered in San Francisco, California
  • Total Capital Raised: $60 million
  • Top European banks: Santander, UBS

Socure (FinvoateFall 2015)

  • Founded in 2012
  • Headquartered in New York, New York
  • Total Capital Raised: $29.4 million
  • Top European bank: Santander

SumUp (FinovateEurope 2013)

  • Founded in 2011
  • Headquartered in Dublin, Ireland
  • Total Capital Raised: $44.3 million
  • Top European bank: BBVA

Symphony Software Foundation (FinDEVr New York 2017)

  • Founded in 2014
  • Headquartered in Palo Alto, California
  • Total Capital Raised: $229 million
  • Top European banks: BPCE/Natixis, UBS, Deutsche Bank, Societe Generale, BNP Paribas, Credit Suisse

Tradeshift (FinovateEurope 2012)

  • Founded in 2010
  • Headquartered in San Francisco, California
  • Total Capital Raised: $182 million
  • Top European banks: Santander, HSBC

Tyfone (FinovateSpring 2008)

  • Founded in 2004
  • Headquartered in Portland, Oregon
  • Total Capital Raised: $13.4 million
  • Top European bank: Deutsche Bank

The analysis focused on fintech investments from 2012 through June 2017, and includes investments made by the venture arms of the banks shown.

Is Prosper Prospering?

Peer-to-peer lender Prosper released its second quarter earnings recently, just days after the company shuttered its consumer-facing bill management system. Given this, we wanted to take a look to see how the 11-year-old company is doing these days.

The good

Here are some positive highlights from the company’s second quarter results:

  • Facilitated $775 million in loan originations. This is up 32% quarter-over-quarter and 74% year-over-year.
  • Grew transaction fee revenue 32% quarter-over-quarter and 84% year-over-year.
  • Issued around $500 million worth of notes in its second securitization from the Prosper Marketplace Issuance Trust

In the press release announcing the results, David Kimball, Prosper CEO said that the company’s growth this quarter was  “driven by strong interest from borrowers, our partnership with a consortium of investors, and innovations from our talented team.” Regarding the securitization, the company’s CFO Usama Ashraf said, “With this second securitization, we continued to see strong demand for our assets, underscoring investors’ confidence in our business and this asset class in general.”

The not-so-good

Just days before closing out its second quarter, the company shut down its financial wellness app, Prosper Daily. The app targeted borrowers and served as a way for Prosper to capture users who failed to qualify as borrowers. The aim of the app was to help users track their spending, protect their identity and monitor their credit score. Prosper launched the app in March of 2016, after the company acquired BillGuard, the app that structured the bones of Prosper Daily, for $30 million in 2015.

Monetarily, the company suffered a net loss of $41.4 million in the second quarter of this year. This is down from the $35.6 million loss Prosper saw in the second quarter of 2016. Overall, the company’s adjusted earnings before interest, taxes, depreciation, and amortization totaled $6.7 million this quarter, up from negative $11.6 million in the second quarter of last year. This is due in part to a deal Prosper closed with a group of institutional investors to buy up to $5 million in loans from February 2017 to February 2019.

Despite the loss of its borrower-facing app, the San Francisco-based company appears to be performing well on the investor side. Founded in 2006, Prosper presented at FinovateSpring 2009 as well as the inaugural Finovate in 2007. Earlier this year, the company appointed Usama Ashraf as Chief Financial Officer and in November of 2016, selected David Kimball to succeed Aaron Vermut as CEO. Forbes interviewed Kimball in a feature earlier this year.

Finovate Alumni News

On Finovate.com

  • Shoeboxed Launches Fetch to Remove Blood, Sweat, and Tears from Expense Reporting

Around the web

  • AutoFinance highlights AutoGravity as 1 of 10 auto finance and mobility companies leveraging AI
  • Biometric Signature ID partners with National Fingerprint to provide virtual ID proofing and verification services

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

  • Socure Raises $14 Million in New Funding
  • BioCatch Partners with LexisNexis to Leverage Data and Analytics for Better Risk Management
  • Colorado’s PSCU Completes Digital Banking Roll Out Powered by Malauzai Software

Around the web

  • Voice collaboration specialist GreenKey wins patent for speech-to-text technology.
  • NCR deploys Windows 10 IoT Enterprise with major European financial institution.
  • IdentityMind Global announces enhancements to its Enterprise Fraud Prevention platform.
  • Vantiv goes live with its cloud payment API, triPOS.
  • Forbes lists SoFi, Credit Karma and Prosper in its list of the 10 biggest fintechs in America.
  • ABN AMRO selects DemystData for Launchpad Program.

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

  • Lendio’s Marketplace surpasses $500 Million in Loans.
  • Worldpay Ships New Features for Worldpay Total
  • Braintree Tops A Billion Transactions Per Quarter Mark

Around the web

  • Temenos Marketplace now hosts Moroku’s Chore Scout.
  • TransferWise links with Apple Pay globally.
  • Vasco names Scott Clements president and CEO.

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

  • 44 Alums Populate CB Insights’ Fintech 250 List.

Around the web

  • ProfitStars named a 2017 Top Workplace by The Tennessean for Third Consecutive Year.
  • Top Image Systems seeing momentum from eFLOW AP solution in 2017.
  • Digiliti Money (formerly Cachet Financial) adds new features to its Select Mobile Deposit and Select Business Merchant Capture solutions.
  • CNBC: Tradeshift hoping to ready initial public offering.
  • CoverHound partners with eHealth to expand insurance ecosystem for consumers and small business owners.
  • Payfone to unveil “One-Time Password-Killer.”

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

Around the web

  • Estonia’s e-Residency program partners with Holvi to launch borderless digital banking for its borderless digital nation.
  • Prosper Closes $495 Million Securitization Transaction.
  • EFL is a finalist in the WSJ’s Financial Inclusion Challenge.

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.