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Draw up a list of the top fintech innovators of 2014. Got it? Now tell me how many of your top 50 companies are not just impressive companies in their respective fields, but Finovate alums, as well.

If you are global accounting and consulting group, KPMG, then the answer is "more than half."

Of the 50 companies recognized by KPMG in its 2014 review of top fintech innovators, 27 have demoed their technologies at Finovate conferences. And of that 27, 13 have won Best of Show at least once.

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The inaugural "50 Best Fintech Innovators" report is a joint venture between AWI Ventures KPMG Australia and the Financial Services Council (FSC). 

The companies chosen were selected based on four factors: total capital raised, rate of capital raising, degree of sub industry disruption, and "degree of product, service, customer experience and business model innovation." 

Writing in an introduction to the report, AWI Limited CEO Ben Heap explained why fundraising played such a prominent part of the selection process.

"These assessment criteria reflect the fact that venture capital invested is a relevant measure of innovation which in turn fuels enduring competitive advantage," he wrote. 

"Venture capitalists seek this enduring competitive advantage over and above everything else."

Here's a breakdown of Finovate alums in the list, in order of appearance, along with links to their most recent demo video. Boldface indicates Best of Show winner.

"Ones to Watch" 
See the full list of companies here.

Alumni News-- December 17, 2014

  • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgThe Jerusalem Post profiles Israeli startup, TipRanks.
  • CashStar Market Solution is now powering 150 promotions during this year's winter holiday season.
  • Enterprising Investor highlights Betterment, LearnVest, Motif Investing, Venmo, and Wealthfront in its column on Millennials and money.
  • TechZone 360 discusses CrowdFlower in a review of "What's Hot and What's Not on Data Science for 2015."
  • Yahoo! Finance features an interview with Rippleshot co-founder and CPO Yueyu Fu.
  • WingCash unveils Brand Cash, a digital currency that replaces merchant-specific gift and loyalty cards.
  • Financial Times profiles Betterment CEO and co-founder, Jon Stein.
  • After Manilla's demise, Mint launches bill pay and bill management platform.
  • Time, Inc partners with Coinbase to accept bitcoin for subscriptions to Fortune, Health, This Old House and Travel + Leisure.
  • Tradeshift to waive 30% revenue share from organizations that build apps to support the circular economy http://bit.ly/13cY6S6
  • Wealth Management looks at the human advisors behind Personal Capital and SigFig.
  • Money Talks News lists alternative lending sites to consider: Prosper, Lending Club, and Kabbage.
  • ID Analytics names Timothy Laughlin as new CFO.
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-- December 16, 2014

  • Thumbnail image for Thumbnail image for 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 announces closing "six-figure eFLOW5 deal" with leading Asia-Pacific bank.
  • ACCESSbank to deploy turnkey insurance agency courtesy of Insuritas.
  • Klarna payment solution now integrated into ekmPowershop.
  • D3 Banking partners with ProfitStars to offer iPay Consumer Bill Pay.
  • Pymnts interviews Jingit, Spreedly, and TSYS CEOs on what they think will make or break 2015.
  • Pymnts: PayPal Loan Program to Compete with Lending Club.
  • ShopKeep gives free NFC reader to new customers wanting to accept ApplePay.
  • Finovate Debuts: EyeLock's Myris Device Authenticates Using Iris Identification.
  • Arroweye Solutions to Provide Debit and Prepaid Card Production to DMS Bank & Trust Ltd. 
  • ZenPayroll now lets companies match employees' charitable donations.
  • Arxan Integrates With IBM Security AppScan and Trusteer Products.
  • Mint launches bill pay and management platform.
  • Entersekt Receives Honorable Mention in 2014 Gartner Magic Quadrant for User Authentication.
  • Interactions closes strategic deal to acquire AT&T Watson speech recognition and natural language understanding platform.
  • Consumer Reports features AnchorID, Betterment, Blooom, EverSafe, FutureAdvisor, iQuantifi, MaxMyInterest, and Wealthfront in its column, "Bright Ideas for a Prosperous 2015."
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-- December 15, 2014

  • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgSFGate column on the technology of mobile payments features thoughts from PayPal's Max Levchin and Loop's Will Graylin.
  • Stockpile teams up with Yodlee to provide Invest Your Change, Stock Purchasing and Gifting products.
  • American Banker takes a look at "post-IPO expectations" for newly-public Lending Club.
  • Golden Pacific Bank adds mobile remote deposit capture to its mobile banking offerings courtesy of Digital Insight.
  • National Association for Business Resources names Billhighway Best and Brightest Company to work for in 2014.
  • Time asks: What is Venmo?
  • Nine of the 15 fintech startups Forbes recommends watching in 2015 are Finovate and FinDEVr alums.
  • eWeek reports on Arxan Technology's mobile Runtime App Self Protection (RASP) enhancements.
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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P2P lending innovator Lending Club made its public debut on Thursday. After an initial overnight pricing at $15, shares of LC opened higher this morning by more than 64% before finishing their first day on the New York Stock Exchange at $23.43.

The 57 million share offering raised more than $865 million for the San Francisco-based alternative lender, which now has a valuation of more than $8 billion. Lending Club CEO Renaud Laplanche, CEO and founder of the company, owns 4% of the company, a stake worth more than $200 million as of today's close.

Lead underwriters for the IPO were JP Morgan, Goldman Sachs, Citigroup, and Credit Suisse.

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Lending Club's growth since its founding in 2007 has been impressive. Operating revenues grew from $1.3 million to $98 million in the four years from 2009 to 2013. In the first nine months of 2014, Lending Club's net revenues climbed to $143 million, more than double last year's mark. Since its founding, Lending Club has financed more than $6 billion in loans and investors on the platform have earned more than $590 million in interest.

Here are a few more metrics for Lending Club:
    • Average customer FICO credit score: 660
    • Average interest rate is 14%
    • Maximum loan amount is $35,000
    • Terms typically range from 3-5 years
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(Above: Lending Club CEO Renaud Laplanche on CNBC)

One of the under-discussed aspects of Lending Club's decision to become a public company is the fact that the platform will be available to a significantly larger number of Americans. Previously, access to Lending Club was a patchwork quilt of differing state regulations, with some states allowing borrowing from the service but not investing and others having the exact  opposite regulation (investing, but no borrowing). And there were some states were the service was not available at all. As a public company under federal regulations, Lending Club can operate in any state.

Another interesting theme of the Lending Club IPO is the way it will be seen as a test of the public investor's appetite for what Mad Money's Jim Cramer referred to as "crowdsourced lending" in his discussion of the company. Alternative lender OnDeck, which specializes in small business lending, is scheduled to go public within days in an effort to raise between $150 and $180 million. Others see the Lending Club IPO as potential validation of broader interest in fintech innovators as a whole.

Lending Club demoed its technology as part of the inaugural Finovate conference in 2007 and again in 2009 for Finovate Startup. Read our CEO interview with Renaud Laplanche.

Alumni News-- December 11, 2014

  • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgMalauzai Software announces launch of its SmartMarketing program to promote mobile banking.
  • Azimo extends £1 money transfer service to India, Pakistan, Bangladesh, and Sri Lanka.
  • Information Week takes a look at mobile payment apps including Flint.
  • Mortgage Harmony rebrands as Rate Reset.
  • Contact Solutions, IDology, and Pindrop Security team up to Cut IVR Fraud.
  • Examiner.com: Dynamics' next-generation credit card features buttons to log-in PIN security code.
  • Lendio CEO explains how his company is fueling the American dream.
  • Prosper comments on Lending Club IPO, expects to top $9 billion in loans this year.
  • PayNearMe partners with Department of Health and Human Services to spread the word about healthcare.
  • Bluefin Payment Systems to provide its PCI-validated Point-to-Point Encryption (P2PE) Solution to Priority Payment clients.
  • Career Bliss lists PayPal, Intuit, and Google in the top 50 happiest companies in the U.S.
  • Lending Club launches IPO, shares rally 70% in early trading.
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-- December 3, 2014

  • iQuantifi announces million-dollar angel investment.
  • LendingTree unveils its small business loan marketplace with loans from $5,000 to $1 million.
  • Betterment reaches 50,000 customer milestone.
  • SK Planet promotes its Bluetooth Low Energy powered mileage app, Syrup, in Seoul.
  • True Potential announces the launch of 15 new, open-ended investment company funds in Q1 2015.
  • Bank of South Pacific to deploy ACI Proactive Risk Manager from ACI Worldwide to help protect against fraud.
  • Klarna to invest $100 million over the next three years to launch its payments systems in the U.S.
  • Finovate Debuts: Loyal3's Stock Investments Democratizes Access to Stocks and IPOs.
  • Entrepreneurial Finance Lab gets a new look.
  • Pymnts features conversation with Currency Cloud's Chief Commercial Officer on how they modernize money movement.
  • Coinbase now enables some customers to hold USD balances in their Coinbase wallets.
  • Time names Braintree's Venmo as 1 of the top 10 apps of 2014.
  • Blockchain issued a .SSL certification.
  • TechVibes features Trulioo's new design.
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-- December 2, 2014

  • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgCompass Plus TranzAxis now supports Futurex hardware security modules.
  • Coinbase introduces USD Wallets, enabling users to store U.S. dollar balances.
  • TradeKing unveils new features for its new LIVE platform.
  • Forbes column on disruption in traditional money exchange features Azimo, TransferWise, and CurrencyFair.
  • CrowdFlower announces support for eight new languages and enhanced support for another four.
  • CEO and co-founder of Trustev Pat Phelan wins MSL Cork Business Person of the Year award.
  • Linqto, Crowd Curity, Xignite, and CUneXus win Future of Money & Technology Summit Startup Showcase.
  • TickSmith adds Amazon Web Services version of its financial big data platforms.
  • The New Daily features SocietyOne as a premium P2P lending option.
  • The Chicago Tribune considers Lending Club's impending IPO.
  • Google Cloud Platform now PCI compliant, enabling developers to hold, process, and exchange credit card information.
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-- October 20, 2014

  • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgNous raises $600k to help drive its SparkProfit stock market prediction platform.
  • Lending Club selects the NYSE for its IPO.
  • Currency Cloud releases Connect API 2.0.
  • InComm partners with CardCash to integrate its online gift card exchange at InComm's retail partners nationwide.
  • Compass Plus completes its TranzAxis integration with Klarna.
  • ID Analytics names Scott Carter Chief Operating Officer.
  • CAN Capital closes its first capital markets asset-backed notes offering.
  • Coinbase now available in 6 additional languages.
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-- October 16, 2014

  • Finovate-F-Logo.jpgFidelity to offer Betterment to 3,000 financial advisers who use its institutional wealth services division.
  • Lending Club named winner of The Economist's annual Innovation Awards in the consumer products category.
  • TechCrunch reports: Sequoia-Backed Behalf Buys Stuff For Small Businesses Looking To Grow.
  • ReadyForZero PLUS Credit now shows credit scoring factors.
  • FT column on technology and banking features PhotoPay.
  • Jumio teams up with Ribbit.me to build ID verification process for RibbitRewards marketplace.
  • Motif Investing iOS app adds account access with Apple TouchID.
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 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.
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    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.
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    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.
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    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.
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    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."

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    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
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    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.

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