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.

Finovate Alumni News

On Finovate.com

  • Personal Capital Extends Series E Round by $40 Million.
  • Conversational AI Comes to USAA Courtesy of Clinc.
  • nCino Inks 100th Customer in Pacific Western Bank.

Around the web

  • Actiance Introduces First Compliance and Archiving Solution for WeChat and WhatsApp.
  • Xero expands Stripe partnership for automated reconciliation.
  • DBS, Xero unveil bank feed integration for SMEs.
  • ICT solution provider Telindus announces integration into the Ripple network.
  • LeanXcale earns a spot in the DB-Engines Ranking of relational and NoSQL database management systems
  • BioCatch granted patent for technology that detects remote access tools in order to spot malicious behavior.
  • Flybits launches new Experience Studio, announces partnership with Bouygues Energies & Services.
  • Wipro opens new Silicon Valley Innovation Center in Mountain View, California.
  • Micronotes partners with TimeTrade to bridge the clicks-to-bricks divide.
  • Credit Union CEOs Move 5 Millionth Member to Insuritas.
  • Gro Solutions to relocate its headquarters to Midtown Atlanta.

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.

Ripple Unveils Expanded Suite of Offerings

What’s in a name? Blockchain solutions company Ripple is about to find out. Today, the company has unveiled a new name for its existing global payments network, as well as a handful of new solutions.

RippleNet, the global payments network, has more than 90 customers and is undergoing more than 75 commercial deployments. The network’s digital asset, XRP, was listed by five new exchanges in the second quarter of this year, which resulted in $11.06 billion worth of XRP transactions. By the end of the second quarter, XRP had risen by 11.6x from the previous quarter and by 39.8x year-to-date.

The San Francisco-based company structured a suite of offerings in support of XRP:

  • xCurrent is a payments processing solution powered by the Interledger Protocol (ILP). The enterprise software solution allows financial institutions to instantly send and receive international payments. The payments include end-to-end tracking and bi-directional messaging, as well as standardized transactions through a Rulebook.
  • xRapid leverages XRP to lower the liquidity costs of payments in emerging markets. xRapid is currently still in development, but the company anticipates more developments over the coming months.
  • xVia is a payments interface available in an API that allows users to send international payments through a bank or payment provider on RippleNet. xVia is also in development and will offer users transparency into their transaction as well as the ability to attach invoices and other rich payment details.

In a blog post announcing the change, Ripple VP of Product Asheesh Birla explained how these developments are all aimed at helping Ripple move toward its singular goal of creating the Internet of Value (IoV). “Our products are coming together (and growing) to support our one, single vision,” Birla said.

Last fall, the company appointed Brad Garlinghouse as CEO, who filled the seat of Chris Larsen who co-founded the company in 2012. Larsen debuted Ripple (originally known as OpenCoin) at FinovateSpring 2013. In addition to making headlines for its rapid growth during the first half of this year, Ripple also made the news this spring when it partnered with BBVA to complete an international money transfer using RippleNet. The company has raised more than $93 million.

Finovate Alumni News

On Finovate.com

  • Mexican Payment Processor Chooses Fraud Fighting Technology from Featurespace.
  • Ripple Unveils Expanded Suite of Offerings

Around the web

  • BBVA announces record product sales through digital channels in June.
  • Tennis star Andy Murray revealed to be among 40,000 Revolut users pre-registered for the company’s crowdfunding initiative.
  • DefenseStorm hires Bob Thibodeaux as Chief Information Security Officer.
  • Modo Payments goes dark in Monday “Unnouncement.” Affirms plans to refocus on payments after hiatus.
  • Mashreq deploys Vipera for mobile wallet.
  • NICE inContact introduces CXone cloud customer experience 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 Alumni News

On Finovate.com

  • Ayondo Opens Offices in Barcelona and Madrid

Around the web

  • Financial Times profiles Avi Turgeman, founder of BioCatch.
  • Metro Bank to deploy workforce management technology from NICE.
  • Let’s Talk Payments interviews OneVisage founder, Christophe Remillet.
  • Darwinex reveals winners of its DarwinIA Trading Challenge.
  • Synergix features CashSentinel (in French).
  • Siam Commercial Bank deploys Ripple technology for cross-border payments between Japan and Thailand.

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.

 

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

Finovate Alumni News

On Finovate.com

  • FutureVault Partners with BlueRock Wealth Management.

Around the web

  • Fiserv to enhance digital banking strategy for Affinity Plus Federal Credit Union.
  • American Banker profiles Ripple’s strategy to partner with– and compete with — banks.
  • U.S. News profiles PayNearMe as a tool to help consumers shop online without a credit card
  • Revolut launches business accounts in U.K. and Europe to complete with Transferwise
  • FICO launches new fraud solution to identify the source of compromised cards faster

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.

Blockchain – a Revolution for the Patient

Written by Lisa Moyle, Director of Strategy, Finovate

The excitement surrounding blockchain or the somewhat less jazzy sounding Distributed Ledger Technology (DLT – in all its forms and incarnations) has been much discussed and taken up many column inches over the past few years. The conversations around the potential of the technology to upend entrenched processes has extended well beyond financial services and use cases have been explored across a broad range of industries – from music and entertainment copyrights to the provenance of organic coffee beans. And what has followed, more recently, is the almost inevitable questioning of whether it’s all been overly hyped. A recent estimate from Gartner indicates that 90% of enterprise blockchain projects launched in 2016 and the first half of 2017 will fail within two years.

“Most revolutions occur over time rather than in a high profile moment and whilst commentators may be impatient for results, there is a lot of activity going on,” Lisa Moyle, Director of Strategy, Finovate

Operating from the assumption that the broad range of stakeholders involved haven’t collectively lost the plot or the ability to apply an economic calculus to an assessment of technology, interest is clearly being propelled by some powerful drivers. The potential to make significant cost savings, streamline processes and create more secure and, indeed, tamper proof systems, are powerful incentives to explore and invest in use cases and proof of concepts. High levels of failure are not therefore a signal that the technology has a weak use case but rather that interest remains high and the potential rewards considerable.

Given JP Morgan’s recent exit from R3, following other large players like Goldman Sachs and Morgan Stanley last year, it is easy to yearn for the tangible and believe that the ‘trial’ stage will continue for the foreseeable future. Yet, we need to follow the practical implementations that are happening and there are a good many examples across financial services.

“Identity is an area where DLT is being explored by many financial institutions in partnership with start-ups,” Lisa Moyle, Director of Strategy, Finovate

Ripple [FS13] has recently added 11 new banking members to its network and now has 75 bank customers using its Interledger protocol. Whilst still far off from overtaking Swift’s 11,000 member banks, it is creating the standards for financial institutions to follow and use DLT. Creating a new process in a new institution is likely to be far easier than attempting to get agreement on changing incumbent processes from 11,000 members. Enabling financial institutions to connect to payment networks and distributed ledger technology to send and settle international payments among one another in almost real time presents a powerful alternative to the current model.

Identity is also an area where DLT is being explored by many financial institutions in partnership with start-ups. SecureKey [FF12], for example, is creating an identity and authentication network underpinned by DLT. It has signed up a number of financial services institutions to its network and received grant funding from the Department of Homeland Security in the US. There are many start-ups operating in the Identity space and beyond (think KYC/AML), harnessing blockchain technology to provide RegTech solutions to the financial services industry where the opportunity to cut costs and provide more robust regulatory compliance is enormous. Regulators at the national, supranational and international levels have taken notice and are compounding interest rapidly.

“Central to the potentially transformative potential of DLT technology is not simply to replace old tech with new but to fundamentally change processes in ways that have not yet even been formulated,” Lisa Moyle, Director of Strategy, Finovate

Looking at a newcomer, blockchain based start-up banki Humaniq, which is targeting the unbanked across emerging markets though a mobile app, recently received investment from Deloitte. It also raised funding through an Initial Coin Offering. Included in its ambitious objectives to harness the blockchain for good to meet the needs of unserved communities are to leverage biometric, voice and location technologies to overcome the hurdles of a customer base who often lack conventional identity proofs.

Big tech is also forging ahead with the creation of blockchain products and services and with both IBM and Microsoft creating blockchain-as-a-service applications for businesses, one can assume that DLT technologies are no flash in the pan. It takes time to work through both the use cases and practical implementation of new technologies; legacy technology cannot be simply replaced in short order. Central to the potentially transformative potential of DLT technology is not simply to replace old tech with new but to fundamentally change processes in ways that have not yet even been formulated. Most revolutions occur over time rather than in a high profile moment and whilst commentators may be impatient for results, there is a lot of activity going on.

Finovate Alumni News

On Finovate.com

  • Twitter Talk: The Top Tweets from FinovateSpring 2017
  • FinDEVr Alum Quovo Raises $10 Million

Around the web

  • TransferWise unveils new APAC hub in Singapore.
  • Temenos adds open banking, PSD2-based services to its MarketPlace initiative.
  • Ten FIs join Ripple’s cross-border, blockchain network.
  • Prival Bank of Panama to deploy Temenos’ core banking solution, T24.
  • Qumram wins “Best RegTech Company” in 2017 FinTech Breakthrough Awards.
  • Pendo Systems completes first full deployment of the Pendo Data Platform and receives certification as a Women’s Business Enterprise.
  • Trulioo adds new Canadian data sources to its GlobalGateway verification technology.
  • Jay Shah promoted to CEO of Personal Capital
  • Xero awarded the Best Overall Fintech Platform by the Fintech Breakthrough Awards.
  • Jumio wins Best Fraud Prevention Platform Category in FinTech Breakthrough Awards.

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

  • Coinbase Launches Open Source Ethereum Wallet to Promote Financial Inclusion.

Around the web

  • Expensify partners with TravelPerk to make business travel easier.
  • Bento for Business welcomes Lou Friedmann as Chief Revenue Officer.
  • Featurespace’s ARIC platform to power fraud prevention for GoHenry.
  • BBVA and Ripple complete blockchain cross-border money transfer pilot.
  •  Larky to power location-based perks platform for Sharetec’s CU clients.
  • Icon Solutions enhances Instant Payments Framework (IPF) to connect to The Clearing House for US Real-Time Payments.
  • Walletron helps Transactis grow its electronic billing and payments service, BillerIQ.
  • NICE Actimize unveils new, cloud-based, fraud analytics optimization technology, ActimizeWatch.
  • Global financial services firm chooses Mobile Verify and Mobile Fill from Mitek.
  • IBS Sales League recognizes Temenos as “number one best-selling digital and channels solution” worldwide.
  • Algomi teams up with OpenFin to deploy software updates faster.

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.