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Alumni News-- September 15, 2014

  • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgMoven CEO Brett King says Apple Pay anticipates the end of physical bank cards.
  • United Way Worldwide now accepts bitcoin courtesy of Coinbase.
  • Monitise releases fiscal year 2014 financial results; announces new strategic partnership with Santander.
  • Business Spectator looks at how Apple, Google, Lending Club, and SocietyOne are part of "banking's double disruption."
  • Allied Payment Network announces integration of FlexPay with PicturePay.
  • Feedzai teams up with Azul Systems to speed its real-time data analysis.
  • The Washington Post features Betterment and HelloWallet.
  • Millicom and Kalixa partner to offer payment acceptance services for businesses and consumers in Africa and Latin America.
  • ProfitStars introduces Gladiator Hosted Network Solutions to enable FIs to move their IT infrastructures to the cloud.
  • Rippleshot, Braintree highlighted in Chicago Tribune column as examples of local contributors to the commerce infrastructure.
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.

Alumni News-- September 5, 2014

  • Finovate-F-Logo.jpgCachet Financial Solutions will deploy its Select Business RDC merchant solution for leading regional bank.
  • Lending Club opens to investors in Vermont.
  • Forbes talks with Simple CEO Josh Reich on how a bank can be a brand you love.
  • MasterCard provides payment services for Basware Pay, an automated supply chain finance system. See MasterCard at FinDEVr in San Francisco.
  • Fenergo announces expansion into Asia-Pacific region.
  • Trustev to deploy its anti-fraud technology in RadioShack stores and online.
  • Courtesy of Nasdaq.com, NerdWallet features Prosper and Lending Club in its look at the rise of P2P lending.
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.

Alumni News-- August 29, 2014

  • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgHeckyl to provide real-time news and data analytics courtesy of new partnership with Marketware International.
  • Diebold brings deposit automation and cash recycling services to consumers and FIs in Brazil. See Diebold at FinovateFall in September.
  • Dwolla makes MassPay official, offers a simpler experience with increased stability, improved reporting, and increased transactions per batch.
  • PYMNTS talks with SumUp CEO Daniel Klein, to understand how it views innovation in the mPOS space.
  • PayPal launches tool, PayPal Demo, to help developers show merchants the difference between different PayPal payment options.
  • CNBC's National Business Report interviews Scott Goldman, CEO of TextPower.
  • American Banker profiles FinovateSpring 2014 Best of Show winner, Stockpile.
  • CNET takes a look at Lending Club in the wake of the company's IPO filing.
    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.
    Thumbnail image for Thumbnail image for Thumbnail image for LendingClubLogo.jpg

    No beating around the bush about this one: we are thrilled to share the news that Lending Club has filed for an initial public offering. The alternative, peer-to-peer lender seeks to raise at least $500 million.

    See Lending Club's S-1 filing at the SEC for yourself here. Forbes reports that Morgan Stanley, Citigroup, and Goldman Sachs will serve as lead underwriters.

    LendingClub_homepage
    The company has been understandably mum as it enters what is known in the business as its post-filing "quiet period." But in its filing, Lending Club noted a trio of advantages over traditional lenders:

    • An innovative marketplace model that efficiently connects the supply and demand of capital
    • Online operations that substantially reduce the need for physical infrastructure and improve convenience
    • Automation that increases efficiency, reduces manual processes and improves borrower and investor experience
    Additionally, the S-1 cited a few choice metrics about the company's first half of 2014, including:

    • Net income: $86.9 million
    • Adjusted EBITDA (excluding some non cash charges): $5.9 million
    • Profit/(Loss): ($16.5 million)
    • Loans originated: $1.8 billion
    In seeking to raise $500 million, Lending Club could become one of the "biggest ever stock market debuts" according to the New York Times DealBook. Lending Club has financed more than $5 billion in loans and paid investors more than $490 million in interest since inception. DealBook notes that the Lending Club prospectus does leave a few questions unanswered such as the price range for Lending Club shares, and the exchange on which the shares will trade.

    For its part, Forbes' coverage of the announcement includes excerpts from a spring interview with Laplanche in which the CEO explains both how Lending Club works and how he ensures that the "best loans" are not cherry-picked by savvy investors. "There are no best loans," Laplanche said. "If we do our job well - and I believe we do, there is no loan that is better than others."

    You can check out our 2012 interview with Laplanche here.

    Lending Club is the fourth Finovate alum to file for an IPO. Q2 went public in March. Cachet Financial Solutions and Yodlee made their IPO filings in early and late July, respectively. As one of the oldest Finovate alums, Lending Club participated in both our inaugural Finovate event in 2007 and again at FinovateStartup 2009. The company is headquartered in San Francisco, California, and was founded in 2007.

    Alumni News-- August 28, 2014

    • Finovate-F-Logo.jpgPymnts features PayPal's OneTouch mobile payments app.
    • American Banker considers how banks are looking closely at how BillGuard uses geolocation to prevent fraud.
    • Taulia launches SupplierPay.org to help corporations support the White House's SupplierPay initiative.
    • IBM and Monitise expand partnership to combine IBM's sales and specialist resources with Monitise's Mobile Money services.
    • Pymnts.com feature on lending shares observations on consumer credit from Lending Club.
    • Forbes column on natural language processing features Narrative Science and Yseop.
    • Wired.co.uk profiles BehavioSec in its Stockholm category of "Europe's hottest startups" in 2014. See BehavioSec at FinDEVr this fall.
    • CopSonic joins the FIDO Alliance.
    • Markets Media features interview with Avoka CEO Phil Copeland.
    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.

    Alumni News-- August 25, 2014

    • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgSan Antonio Federal Credit Union to integrate Geezeo PFM technology.
    • On Deck partners with Worldpay to provide access to financing for small and medium-sized merchants.
    • PaymentsSource features Dynamics ePlate among its list of "7 unusual emerging payments technologies."
    • Top Image Systems announces patent for full page mobile image processing.
    • The New York Times profiles Financial Guard, Motif, Betterment, FutureAdvisor, Jemstep, SigFig and Wealthfront .
    • InStream Solutions launches comparison tool.
    • Moven expands internationally, signs deal with New Zealand-based Westpac.
    • HuffPo profiles Prosper, Lending Club, and Kabbage in column on the rise of online lending.
    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.

    Alumni News, 22 August 2014

    • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgEyeVerify raises $6 million in Series A round, joins Wells Fargo Startup Accelerator.
    • Continuity Control announces $10 million investment.
    • Zumigo earns a spot in, and an investment from, Wells Fargo Startup Accelerator.
    • BlueVine brings in $1.5 million in funding. Check out BlueVine's live demo at FinovateFall.
    • Four notable website upgrades on Bankbazaar.com.
    • Houston Chronicle features Lending Club success story.
    • Check Point Software Technology positioned as a Leader in the 2014 Gartner Magic Quadrant for Unified Threat Management.
    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.
    Inc50002014

    Inc. Magazine recently released the 2014 Inc. 5000 list that ranks the fastest growing privately-held companies in America. We combed the top 1,000 for Finovate alums and two made the cut. Many more are listed among the remaining 4,000 companies.

    Before taking a closer look at the two fast-growing companies, here are some stats on the financial services sector as a whole ranked against the other 24 industry categories:

      • Revenue: It ranked 5 of 25 in 2013 revenue, with a total of $17.2 billion
      • Growth rate: It ranked 19 of 25 in growth over the course of 2010 to 2013, with a rate of 112%
      • Job creation: It ranked 12 of 25 in the number of jobs the industry created from 2010 to 2013

    Here are the two Finovate alums that made the top 1000:

    LendingClubLogo.jpg
    Lending Club, a peer-to-peer lending platform
    Rank: 248
    Founded: 2007
    Headquarters: San Francisco, CA
    3-year revenue growth: 18x
    LendingClubHomepage2

    OnDeckLogo
    OnDeck, offers alternative loans to small and medium sized businesses
    Rank: 726
    Founded: 2007
    Headquarters: New York City, NY
    3-year revenue growth: 6.3x
    OnDeckHomepage2

    Alumni News-- August 13, 2014

    • Finovate-F-Logo.jpgNetbanker features 2012- 2013 fintech graduates from Y Combinator:  TrueLink Financial, Coinbase, and LendUp.
    • Netbanker features 2009- 2012 fintech graduates from Y Combinator: ZenPayroll, SmartAsset, TrustEgg, FutureAdvisor, ReadyForZero, and WePay.
    • American Banker considers how Diebold is leading the way on the branch of the future.
    • peerTransfer surpasses 500 clients, while processing over $1 billion in international payments.
    • Heartland Payment Systems buys out remaining shareholders of tablet software and hardware startup, Leaf.
    • ACI Worldwide announces completion of ReD acquisition.
    • Lending Club mentioned in HBR Blog's look at how new lending technology can help small businesses.
    • Silanis Technology partners with loan management software specialist Calyx Software. See Silanis at FinovateFall 2014 in September.
    • planwise teams up with Informa Research Services to launch plug-and-play search tool of real estate agents and brokerages.
    • NextAdvisor column in HuffPo highlights LendUp as alternative loan option for the underbanked.
    • Pandai announces joint cooperation with China and Hollard to leverage their experience in the loan insurance market.
    • Xero and Square partner to sync Square transactions and give a business a view of their finances. See Xero present at FinDEVr. 
    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.

    Alumni News-- July 8, 2014

    • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgTop Image Systems signs agreement to acquire cloud-based banking solutions provider, EGistics.
    • Prestadero raises more than $670K in series B funding round.
    • ACI Worldwide to bring electronic billpay to Southern Auto Finance Company (SAFCo).
    • P2Binvestor crowdlends $2 million line of credit to fellow Finovate alum.
    • Mike Branton of StrategyCorps discusses the "three big threes of checking" in CB Insight.
    • Lending Club facilitates $1 billion of loans in Q2 2014, which brings it to a total of $5 billion since its inception.
    • ReadyForZero announces two new resource centers: Get Out of Debt and Auto Loan Resources.
    • First American Credit Union hires Insuritas to launch insurance agency to build non-cyclical fee income.
    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.
    Thumbnail image for FinovateFundingIMG.jpg

    In the first quarter of 2014, 23 Finovate alums raised more than $592 million

    And as the second quarter draws to a close, it's clear that a comparable cohort of alums have kept the pace.

    Over the course April, May, and June, 28 alums raised significant amounts of capital ranging from Gremln's $100,000 to the $65 million raised by Lending Club. The quarterly total of $594 million is almost exactly the same as the previous quarter.

    And given that some amounts are undisclosed (I'm talking about you, Holvi, RevolutionCredit, and Tuition.io), we're confident that Finovate alums have notched their second $600 million fund-raising quarter in a row.

    How does this compare with the less recent past? Very well, indeed. 

    In the second quarter of 2013, 15 alums raised more than $200 million. This was a major improvement on the second quarter from 2012, which featured 14 companies raising more than $120 million. 

    Total raised for Q2 2014 = $594 million

    April -- $217 million raised by 11 companies
    May --  $226 million raised by 11 companies
    June -- $151 million raised by six companies

    Note: Funding prior to becoming a Finovate alum not included. Questions? Comments? Email us at David@Finovate.com or Julie@Finovate.com

    Alumni News-- June 30, 2014

    • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgBBVA announces partnership with Visa to bring host card emulation (HCE) functionality for contactless payments for its Wallet app.
    • Teachers Federal Credit Union ($4.9 billion in assets) to deploy Fiserv DNA platform.
    • Monitise on the Move: Helping Banks Enable Commerce.
    • Lending Club moves closer toward an initial public offering.
    • ID.me's partnership with Overstock.com to add first responders.
    • Millionaire Corner features Nutmeg and FutureAdvisor as examples of "productive and easy" online investing.
    • Free Enterprise interviews Betterment CEO Jon Stein.
    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.

    Alumni News-- June 18, 2014

    • Finovate-F-Logo.jpgThreatMetrix integrates with Ping Identity's PingFederate ID bridge to provide contextual employee authentication.
    • Kony brings in $50 Million in Financing Led by SoftBank Capital.
    • Eight Finovate alums earn spots on CNBC's Disruptor 50 list: Motif Investing, TransferWise, Personal Capital, Wealthfront, Lending Club, Coinbase, Bill.com, and Betterment.
    • Umpqua Bank announces plans to transition to a scalable core solution from FIS.
    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.
    CNBC_Disruptor_50_logo

    Hats off to eight Finovate alumni for winning spots on CNBC's Disruptor 50.

    2014 marks the second year of CNBC's Disruptor 50 list. The selection credits companies for being "forward-thinking" and working to discover untapped markets en route to becoming "billion-dollar businesses." Read more about CNBC's selection methodology here.

    CNBC's David Spiegel wrote: 
    "All of these companies entered traditional sectors and turned them upside down ... It's the power of a company to displace the established incumbents in its own industry, prompting a ripple effect throughout its economic ecosystem."

    See CNBCs inaugural Disruptor 50 here. The 2013 list included alums boku, CircleUp, Lending Club, and Wealthfront.
    futureadvisorlogo.jpg

    Add another $15.5 million to the amount of capital raised by alternative investment management service, FutureAdvisor.

    The Series B investment takes the company's total capital to more than $20 million. According to reporting at TechCrunch, the funding will help FutureAdvisor reach its goal of doubling its workforce to 40 by year's end.

    The round was led by Canvas Venture Fund's Rebecca Lynn, and included participation by Sequoia Capital. Finovate Fun Fact: Rebecca is on the board of another Finovate alum, Lending Club.
    FutureAdvisor_homepage
    FutureAdvisor sets itself apart from its peers with its promise to bring "premium investment management" to the masses. The company's key differentiator, in addition to targeting a more upper middle class rather than "affluent" clientele, is that its technology is designed to help people best set up and manage their current IRA and/or 401(k) accounts. 

    What this approach may lack in scope - competitors focus more on creating new accounts rather than managing existing ones - it gains in practicality. With 401(k) plans alone representing 18% of the more than $19 trillion U.S. retirement market, there is plenty of opportunity for an investment management service with that kind of focus.

    FutureAdvisor provides investment advice as well as rebalancing services. Without charge, investors can have their portfolios optimized using FutureAdvisors investing algorithms. For actual money management services, from monitoring and rebalancing to tax-loss harvesting, FutureAdvisor charges an annual management fee of 0.5%.

    Founded in Seattle in May 2010 and now headquartered in San Francisco, FutureAdvisor has more than $110 million in assets under management. Bo Lu is CEO. The company demoed its Premium Service at FinovateFall 2013. See the demo here.
    ondeck_logo_new.jpg

    The only thing keeping pace with the investment interest in alternative lenders from Prosper to Kabbage may be the growing partnership interest from banks.

    Earlier this week we reported on the deal between Lending Club and Union Bank. Today we learn that BBVA Compass will be working with OnDeck to develop better ways to provide loans to its small business clients.

    Specifically, BBVA Compass will be relying on OnDeck's OnDeck Score. This technology allows banks and financial institutions to review thousands of relevant data points, including social data points, to help determine a would-be borrower's suitability for a given loan.

    This new initiative is a big deal for OnDeck, and represents the first such collaboration with a bank the size of BBVA Compass. Founded in 2007 and led by CEO Noah Breslow, OnDeck made headlines a month ago when it announced a $77 million funding round led by Tiger Capital. The company specializes in combining loan underwriting analysis with the merchant's own business data to determine a potential borrower's creditworthiness faster than traditional lenders.

    The average loan from OnDeck is $40,000, and loans can run as high as $250,000. Terms range from as little as three months to two years. The company demoed its technology at FinovateSpring 2012.
    • Finovate-F-Logo.jpgCU Alliance hires Insuritas to build non-cyclical fee income for credit union members.
    • Wade Arnold wins CEO of the Year award from Technology Association of Iowa, weeks after selling Banno to Jack Henry & Associates.
    • Holvi moves HQ to downtown Helsinki.
    • Fidor AG is first bank to deploy Ripple protocol.
    • Lending Club announces partnership with Union Bank.
    • Fiserv's TradeFlow enhanced to support SWIFT's GETC.
    • Sonora Bank implements SilverLake core processing platform from Jack Henry Banking.
    • LendUp raises $50 million credit debt facility from Victory Park Capital.
    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.
    Thumbnail image for Thumbnail image for Thumbnail image for LendingClubLogo.jpg

    Between the proliferation of lenders at FinovateSpring 2014 demoing in San Jose last week, and today's funding announcements from alums Prosper and Kabbage, it is clear that lenders in the 21st century will continue to demand their space in the fintech headlines.

    Today brings news that Lending Club has reached a deal that will allow Union Bank to sell loans from Lending Club. The two organizations will also work together to develop new credit products and services to be made available to customers of both companies. In a press release, Lending Club cited the combination of its low operating costs and Union Bank's "strong balance sheet and large customer base" as one of the synergies contributing toward the deal.

    One key question is what sort of new credit products are Lending Club and Union Bank discussing? Details remain few and far between as this point. But this could be a significant development. It has been a goal of Lending Club to sell its loans to banks and other financial institutions. But the potential of a customer-facing link to Lending Club at FIs like Union Bank would be a very worthwhile opportunity for the P2P lender.

    Lending Club also recently announced raising $115 million in debt and equity, and an acquisition of Springstone Financial. Based in San Francisco, California, Lending Club has issued more than $4 billion in personal loans since the end of March 2014. The company has also more than doubled its annual loan volume annually since its 2007 launch. With more than $335 in total capital raised, Lending Club has been valued at nearly $3.8 billion.

    Union Bank is the primary subsidiary of UnionBanCal Corporation, a financial holding company with assets of more than $107 billion. Union Bank operates more than 400 branches in seven states in the U.S., as well as two international offices.

    The partnership between Lending Club and Union Bank was announced at the LendIt 2014 conference in San Francisco on Monday. The arrangement represents the largest such partnership Lending Club has inked to date, and comes in the wake of Wells Fargo's decision to reverse, or at least clarify, a policy that banned its employees from participating in P2P lending platforms.
    • Finovate-F-Logo.jpgTuition.io brings in funding, surpasses $1 billion in loans under management.
    • eWeek talks to Pindrop Security about scams during tax season.
    • PYMNTS.com chats with miiCard CEO James Varga about identity theft.
    • Financial Samurai interviews FutureAdvisor CEO, Bo Lu.
    • Lending Club raises $115 million in debt and equity; acquires Springstone Financial.
    • Kabbage blog features Expensify in its list of the 10 best mobile apps for small businesses.
    • MasterCard to acquire APAC-region loyalty and rewards provider, Pinpoint.
    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.
    Thumbnail image for Thumbnail image for Thumbnail image for LendingClubLogo.jpg

    News that Lending Club has raised $115 million in debt and equity is a reminder that alternative lenders continue to be a magnet for venture capital.

    The equity stake totals $65 million, and comes courtesy of BlackRock, Sands Capital, T. Rowe Price Associates, and Wellington Management Company. This boosts the company's total capital raised to more than $280 million.

    Lending Club also announced that it was acquiring Springstone Financial in a cash and stock deal worth $140 million. Springstone specializes in providing financing for medical patients and for medical professionals looking to fund their continuing education.

    Moving into medical financing is apparently part of Lending Club's overall strategy for growth. Last month, the company announced that it was moving into small business lending, challenging incumbents like Kabbage, CAN Capital, and OnDeck. The company has also begun selling loans to community banks, announcing agreements with seven small banks last December.

    Lending Club has doubled its annual loan volume every year, and has paid more than $300 million in interest to its investors. The company reported surpassing the $3 billion loans originated mark at the end of 2013.

    In the top five of Forbes' "Most Promising Companies" roster for 2014, long-time Finovate alum (StartUp 2007) Lending Club was founded in 2006 and is based in San Francisco. Renaud Laplanche is CEO.

    Finovate Alumni News -- March 25, 2014

    • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgEleven Finovate alums win awards at PYMNTS Innovation Project 2014.
    • Bazaarvoice announces partnership with Spredfast.
    • TechCrunch: Wealthfront, OnDeck, Lending Club, Credit Karma, Betterment, and Kapitall "come of age."
    • CMS Wire reviews Backbase's customer experience platform.
    • Top Image Systems' eFLOW to process the digital census of a country in EMEA in a deal worth more than $1 million.
    • Place2Give releases GIVE-API to provide access to its database of charities as well as its payment processing tech.
    • SmartAsset raises $5.2 million in series A funding. Come see their live demo at FinovateSpring next month in San Jose.
    • Netherlands Queen Maxima visits Entrepreneurial Finance Lab (EFL) to see its psychometric credit scoring methodology in action.
    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.
    Innovation_Project_2014_pymnts_logo.jpg

    The votes are in. The judges have decided. And 11 Finovate alums have earned awards at the 2014 PYMNTS.com Innovation Project, including three gold medals.

    Finovate alums won awards in a diverse range of categories, from "B2B Innovation" to "Best Comeback Story." Areas where alums dominated included "Best Credit Innovation," where Credit Karma, Lending Club, and Klarna swept the field, as well as "Best Innovation via ACH" and "Best Check Innovation."

    Thumbnail image for Innovator_awards_pymnts_2014.jpg
    The Innovation Project is "powered by PYMNTS.com," a joint venture between BusinessWire and Market Platform Dynamics. The event is in its second year, and was again held at Harvard University in Cambridge, Massachusetts.

    A total of 49 awards were presented. Gold, silver, and bronze in fifteen categories, plus singular Catalyst, Women Driving Innovation in Payments, Lifetime Achievement, and Best in Show awards. 

    Also announced were three inductees to the Payments Hall of Fame.

    See how the rest of the Finovate family fared below.




    Catalyst Award 
    • International e-commerce payments and money transfers
    • Finovate demo video: Europe 2012
    Gold
    • Best B2B Innovation
    • Cash flow management solution for business integrating electronic payments, accounting, digital documents, and more
    • Finovate demo video: Spring 2012
    • Best Credit Innovation
    • Aggregates consumer financial data from bank accounts and credit scores to mortgage loans in one location
    • Finovate demo video: Startup 2009
    • Best Check Innovation
    • Enables check payments without having to write paper checks
    • Finovate demo video: Spring 2012
    Silver
    • Best Credit Innovation
    • Online, peer-to-peer lender
    • Finovate demo video: Startup 2009
    • Best Cash Innovation
    • Cash transaction network 
    • Finovate demo video: Spring 2013
    • Best New Technology
    • Open-source, distributed payment protocol
    • Finovate demo video: Spring 2013
    • Best Innovation via ACH
    • Best Check Innovation
    • Send money to a Venmo account, bank account or supported debit card for free
    • Finovate demo video (with Braintree): Spring 2013
    Bronze
    • Most Innovative Company
    • E-commerce solution mitigates credit and fraud risk for online merchants 
    • Finovate demo video: Spring 2012
    • Most Disruptive Innovation
    • Best Comeback Story
    • Peer-to-peer lending
    • Finovate demo video: Finovate 2007
    • Best Credit Innovation
    • Best Innovation via ACH
    • Solution leverages mobile device camera to enable check deposit, account opening, and bill pay.
    • Finovate demo video: Fall 2013
    Thumbnail image for Thumbnail image for Thumbnail image for LendingClubLogo.jpg

    Peer-to-peer lender, Lending Club, announced today that it is expanding into small business lending. The company will provide 1 to 5 year loans of between $15,000 and $100,000, starting at a fixed rate of 5.9%.

    Does this make them P2P2B?

    In an interview with CNN Money/Fortune, Lending Club CEO Renaud Laplanche said that the move was a matter of meeting a need that had gone unmet in the wake of the 2008 financial crisis. "Over the last couple years, the larger commercial loan market has picked up again," he said. "If you look at smaller commercial loans, that market has continued to shrink since 2008."

    "It's not for lack of demand. There are a lot of business owners who don't have the capital to grow their businesses."
    Lending_Club_bizloan_homepage.jpg
    Laplanche suggested that the market for lending to small businesses "is not all that crowded." But the new initiative is a shot across the bow for those currently in the sailing in the small business lending space such as CAN Capital, Kabbage, OnDeck, and even PayPal.

    Adding small business loans is part of Lending Club's larger project to add additional credit products, from auto loans to home mortgages. The company's new small business loans initially will only be available for investment by institutional investors. Lending Club will consider giving retail investors access to these loans in the future, after reviewing repayment and default rate data.

    A few key metrics on Lending Club.
    • Originated more than $3.9 billion in loans
    • Doubled annual loan volume every year
    • Raised more than $200 million in funding
    • Paid more than $300 million in interest to investors
    A long time Finovate alum (Startup 2009), Lending Club was founded in October 2006. The San Francisco, California-based company includes Foundation Capital, Google Capital, and Kleiner Perkins Caufield & Byers among its most recent investors, and was ranked #5 on Forbes' Most Promising Companies list for 2014.
    • Finovate-F-Logo.jpgLighter Capital provides $1 million in growth funding to 3 tech startups.
    • Check Point collaborates with VMware to provide network security for the private cloud.
    • Monitise now offers mobile alerting software as a standalone product.
    • Moven launches its mobile-first bank to public.
    • ClickZ features Actiance's compliance specialist, Joanna Belbey.
    • SafetyPay and GlobalShopex partner to provide a secure international shipping solution for U.S. ecommerce sites.
    • MacWorld Business lists Kashoo and Xero among their favorite online business accounting apps.
    • Wells Fargo reversal on P2P loan ban for staff is good news for companies like Lending Club and Prosper.
    • Kansas City Star features local biometric security startup, EyeVerify.
    • TradeHero launches Android version of their stock market simulation app.
    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-F-Logo.jpgLending Club named #5 on Forbes' Most Promising Companies List.
    • The Wall Street Journal mentions SecondMarket's private shares trading market.
    • Doxo receives 2013 Award for best Software and App from the Seattle Award Program.
    • VentureBeat lists Xero and Expensify as 2 of the best back-office software applications for small businesses.
    • Billhighway Prepaid MasterCard named winner in eighth annual Paybefore Awards.
    • Bank Systems & Technology features Allied Payment Network's Picture Pay mobile bill pay app.
    • FIS wins Frost & Sullivan Customer Value Enhancement award for FIS Mobile Wallet.
    • Credit Card Vault in the Cloud Spreedly Raises $500k.
    • Find Biometrics takes a brief look at 2013 and 2014 with EyeVerify's Director of Marketing, Denise Myers.
    • DeviceFidelity announces availability of its IsisReady NFC cases for iPhone.
    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-F-Logo.jpgPersonal Capital "zips past the $350 million mark," reports growth rates of +10% month-over-month.
    • Inc. features Kabbage's growth & how it has extended $200+ mil in funding to SMBs in just 2.5 years of operations.
    • FINalternatives looks at P2P lending growth and evolution, including Lending Club and Prosper.
    • Ovum research report highlights ACI Worldwide's leadership in payment switching industry.
    • MarketWatch features Better ATM Services in report on the next generation of ATMs.
    • CSI globalVCard named a finalist in two categories in 2014 Stevie Awards.
    • RTE News takes a look at Irish fintech startups including CurrencyFair and Trustev. Watch Trustev demo its technology at FinovateEurope 2014.
    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.
    Thumbnail image for Finovate-F-Logo.jpg

    Last year, Forbes selected four Finovate alums for its "America's Most Promising Companies" roster.

    This year, Forbes picked five.

    Lending Club is back, the veteran of last year's list climbing from a #12 ranking in 2013 to a #5 in 2014. Also returning is On Deck Capital, which soared from a #94 ranking last year to an #11 ranking this year.

    When you look at the other alums to make the 2014 roster, it is clear that success in the lending  and capital-raising businesses are what bring in the votes over at Forbes. In addition to Lending Club and On Deck Capital, there is Kabbage coming in at #37. 

    Thumbnail image for Thumbnail image for LendingClubLogo.jpg
    Rank: #5
    Revenue: $98 million
    Employees: 379

    ondeck_logo_new.jpg
    Rank: #11
    Revenue: $65 million
    Employees: 240

    Thumbnail image for KabbageLogo.jpg
    Rank: #37
    Revenue: $17 million
    Employees: 80

    Thumbnail image for CashStar.jpg
    Rank: #81
    Revenue: $16 million
    Employees: 88

    Thumbnail image for QuantopianLogo.jpg
    Rank: #98
    Revenue: $0
    Employees: 12

    Finovate Alumni News-- January 2, 2014

    • Lending Club announces more than 144,000 loans valued at more than $2B processed in 2013.
    • AARP Blog highlights Manilla among its list of "6 mobile apps to help you get organized."
    • peerTransfer reports another $6 million investment and a new 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.
    LendingClubLogo.jpgP2P lending network, Lending Club, is changing the way it is viewed by traditional banks.

    Now Lending Club is trying to cultivate another corner of the traditional financial industry by selling its loans to community banks that need to diversify their asset portfolios. It has agreements with seven small banks who buy loans that Lending Club originates and services, and who now account for almost 10% of its financing. The company is also working with some of those banks to make personal loans to their customers -- a service that Lending Club and its partners see as an opportunity to compete with bigger banks like Citigroup (NYSE:C) and JPMorgan Chase (JPM) that dominate the credit card market.

    One such institution using the new service is MainStreet Bank, which has been buying Lending Club loans since August. The bank, which has $272 million in assets and 5 branches, has purchased more than $7 million in loans from Lending Club, at $2 million in assets per month.

    As of this month, the San Francisco-based company has made $3 billion in loans and is planning to expand into small business loans. 

    Lending Club demonstrated at the very first Finovate in 2007 and at Finovate 2008. The company plans to go public next year.

    • Finovate-F-Logo.jpgDMG Consulting ranks NICE as the speech analytics market share leader for the fifth consecutive year, and as the contact center WFO market share leader for the first half of 2013.
    • Cachet Financial Solutions partners with YellowPepper to bring mobile deposit technology to Latin American Marketplace 
    • Midway Sewer District launches on doxo; more than 8% of customers go paperless in the first 90 days.
    • See BehavioSec's Best of Show winning demo from FinovateAsia 2013.
    • Pymnts.com talks with Jonathan Hancock of TSYS on curbing card-not-present fraud.
    • Sage adds daily spending limits, funding rules to their Business Prepaid Visa Card mobile app.
    • American Banker reports: Lending Club Targets Small Banks with Personal-Loan Push http://bit.ly/19CcyQq
    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.
    Thumbnail image for LendingClubLogo.jpg

    When Lending Club demoed at Finovate Startup in 2009, the company boasted $35 million in personal loans originated.

    This morning, we learn that Lending Club has reached $3 billion in personal loans originated, with $2 billion of that amount generated in 2013 alone.

    With 225,000 loans in 44 states, Lending Club continues to leverage its lending technology to put borrowers and lenders together in a way that saves money compared to the kind of lending that characterizes traditional banking. Lending Club CEO Renaud Laplanche said, "it is gratifying to see how many people we've been able to help achieve their goals this year, from consolidating debt to paying off credit cards to completing home improvement projects."

    Lending_Club_homepage.jpg
    Lending Club's technology matches creditworthy potential borrowers with lenders looking for returns. Rates available for borrowers are typically better than credit card rates, and lenders benefit from putting their capital to work earning solid returns and generating cash flow.

    In addition to strong, year-ending metrics, Lending Club's 2013 has been positive overall. The company secured an investment from Google, part of a secondary transaction worth $125 million. Lending Club also made significant additions to its executive team and advisory board, bringing former Capital One Bank SVP Sid Jajodia on board for the former and luminaries like Mary Meeker and Lawrence Summers on board for the latter.

    In store for 2014, according to Laplanche, are stepped up efforts to help Lending Club become a more "mainstream brand," as well as expansion into new product categories. The Lending Club team now stands at more than 300 employees, and recently expanded to a fourth floor at its San Francisco location.
    • Finovate-F-Logo.jpgRentPaidOnline and PayNearMe partner to bring cash payments to its online platform 
    • Daily Finance interviews PaySimple CEO Eric Remer on Next-Gen Payment Processing.
    • ShopKeep POS releasing new version of its iPad-based sales mgmt system to cut checkout time in retail locations.
    • Novant Health launches on doxo to deliver bills & simplify the patient experience.
    • Lendio named one of Utah Business Magazine's Best Companies to Work for in 2013.
    • Credit Sesame launches banking channel with new interest rate comparison tool.
    • Billhighway ranked no. 146 fastest growing company in North America on Deloitte's 2013 Tech Fast 500.
    • Former U.S. Treasury assistant secretary for financial institutions and Google SVP join Lending Club's advisory board.
    • The Paypers reports SumUp extends to Latin America with launch of m-payments service in Brazil.
    • Lend Academy reports: Lending Club now valued at over $2 Billion.
    • Open Bank Project organizing the second edition of Hack/Make The Bank FinTech hackathon in Paris on Nov 30th.
    • EyeVerify competes tonight in Kauffman Foundation's "Get in the Ring: The American Startup Clash".
    • Texas Advanced Computing Center to test pilot Toopher's Invisible Multifactor Authentication solution.
    • MasterCard opens office in Bangladesh.
    • Leaf featured in column on Boston-based mobile payment hardware systems.
    • The Points Guy compares new Coin card to Wallaby Card.
    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-F-Logo.jpgFiserv to offer clients Guardian Analytics' FraudMAP solutions.
    • Lending Club CEO, Renaud Laplanche, named a winner of Ernst & Young's Venture Capital Award of Excellence.
    • PayPal and Blackhawk Network join forces to bring gift card services to the digital wallet.
    • Manilla User Survey: Consumers Want Bills in One Place and Banks with Bill Management.
    • Payments, Mobile, Security, Social: A Look Ahead to FinovateAsia 2013.
    • Are Utilities Ready for Mobile BillPay? Industry Leaders Weigh-in via Check Survey.
    • Locaid featured in American Express Open Forum column on attracting mobile customers with geofencing.
    • SeedInvest "thrilled" by new rules proposed for equity crowdfunding.
    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.
    • ReadyForZero is expanding its online consumer offering to include the VantageScore 3.0 credit score.
    • Pando Daily looks at Tuition.io's current usage numbers and funding status.
    • Finextra reports: Head of Capital One Bank small business lending joins Lending Club.
    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-- August 8, 2013

    • FinovateLOGO.jpgKofax announces completion of Kapow Technologies acquisition.
    • ACI Worldwide cites role of their Universal Payments Platform in net new bookings growth for 2013 in this week's Q2 report.
    • The New York Times looks at Lending Club, Prosper, Zopa, On Deck, SocietyOne, and Kabbage as significant lending platforms.
    • Finextra reports: PayPal trials new geolocation payment service in London.
    • Leadfusion launches new RESPONSE interface for Premium Financial Tools.
    • Finect Founder Jennifer Openshaw moderates Best Practices in Compliant Social Media webinar. See Finect demo at FinovateFall 2013 in New York.
    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-- August 5, 2013

    • FinovateLOGO.jpgZopa featured in a Scottish Express column on P2P lending in the United Kingdom.
    • MasterCard and Visa to bring standardized chip-and-pin technology to the U.S.
    • Azimo, Zopa, and Lending Club are among the Finovate alumns highlighted in an Economist column on "changing finance for the better."
    • VentureBeat lists BillGuard as 1 of 20 fastest growing mobile startups.
    • Slate lists reasons why everyone should download and use Braintree's Venmo app.
    • Digital Trends chats with Basil Anan, CoverHound CEO on insurance rates trends. Check out CoverHound's new tech at FinovateFall in NYC next month.
    • Braintree listed by Pando Daily as one of Chicago's "new class of anti-Groupons".
    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.

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