Finovate Alumni News

On Finovate.com

  • Klarna Raises $35 Million in ‘First Small Step” into Debt Financing
  • D3 Banking Brings in $10 Million from West Partners
  • LendingTree Launches CRA-Eligibility Tool
  • Encap Security Acquired by Client, AllClear ID
  • Avoka Locks in $12 Million in New Investment

Around the web

  • Banco CTT goes live with customer onboarding solution developed by Novabase.
  • Canada’s ATB Financial and Germany’s ReiseBank use Ripple to complete world’s first banking transfer using blockchain.
  • Wired UK profiles Fidor, “the fintech bank run by its customers.”
  • Asseco South Eastern Europe (SEE) named a Representative Vendor in Gartner’s report on open unified digital banking platforms.
  • Fortune.com’s list of the five hottest companies in fintech features alums Kensho and Ripple.
  • Kasasa’s MoneyIsland money-management game for children ranks among iTunes’ most popular apps.
  • Chip-Chap bitcoin marketplace leverages SafetyPay as a payment method.
  • OnDeck launches Accountant Advisor Program to help accountants arrange financing for their small business clients.

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.

OurCrowd Wins Red Herring Awards; Announces Partnerships with Bayer, DuPont

OurCrowd Wins Red Herring Awards; Announces Partnerships with Bayer, DuPont

OurCrowd_homepage_June2016

It’s been a busy June for Jerusalem-based, crowd-investing platform OurCrowd. The company picked up a Red Herring awardannounced partnerships with Bayer, Dupont, and FinistereAG; and earned positive press from The Times UK and Wired.

“Start-up companies don’t just need cash, they need help,” OurCrowd founder Jon Medved this week told James Hurley of The Times UK. Calling his crowd-investing platform a combination of “old-fashioned venture capital and new-age crowdfunding,” Medved emphasized the amount of due diligence performed in selecting portfolio companies, and said only 2% of the companies seeking a spot on the platform make it.

OurCrowd’s platform enables accredited investors to provide capital to early-stage startups. With as little as $10,000, investors can participate in platform-sponsored funding rounds to purchase equity in the companies. When the funding goal is reached and the round ended, a representative from OurCrowd joins the startup’s board to help advise the company and look after the interests of investors. It is this level of engagement that convinces Medved that private company investment is often a better route for tech startups than going public. “If you really want to have output from your investment,” Medved told Wired UK earlier this month, “you’ve got to be in private company investment.”

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CPO Shai Ben-Tovim and VP of Engineering Oshrat Kfir demonstrated the OurCrowd app at FinovateSpring 2016 in San Jose, California.

OurCrowd was one of 19 Israeli companies earning a spot in the RedHerring 2016 Europe Top 100. Not only did OurCrowd hit the Top 100, but also two companies in OurCrowd’s portfolio—CropX and Zebra Medical Vision—made the cut. “There is no doubt about it,” the OurCrowd blog read today, “Israel has become a world leader in startup success.”

OurCrowd’s collaboration with Bayer, DuPont, and FinstereAG has led to the launch of a new accelerator fund, Radicle, that is designed to help foster innovation in early stage agricultural technology startups. The $15 million fund focuses on agricultural technologies that contribute to productivity, sustainability, and quality such as genomics, seed tech, and disruptive or novel farm systems. OurCrowd General Partner David Stark suggested that his firm had a unique understanding of the challenges and opportunities of technology innovations in agriculture.

“Forced to overcome the challenge of making the desert bloom, Israel has a long history of agricultural innovation and today is home to a multitude of world-class AgTech startups,” Stark said. OurCrowd portfolio company and Red Herring Europe Top-100 award-winner CropX specializes in adaptive irrigation technologies.

Founded in 2013 and headquartered in Jerusalem, Israel, OurCrowd demoed its app at FinovateSpring 2016. Via its platform, OurCrowd and investors have put more than $220 million in capital into 100 portfolio companies, with six exits in the past three years.

 

Passport Raises $8 Million in Series B

Passport Raises $8 Million in Series B

Passport_homepage_June2016

Here’s a funding from one of our more interesting alums that slipped below the radar last month: mobile payment innovator Passport has raised $8 million in new funding. The Series B round was led by MK Capital, and featured participation from Grotech Ventures and Relevance Capital. The new investment takes Passport’s total funding to $17 million.

Passport CEO Bob Youakim said that the capital infusion would help speed the company’s growth and expansion both in the United States and around the world, as well as enable Passport to add talent to the team. “Our enterprise platform is striking a chord with the market as they look to bring technology into their operations and drive efficiency.” Youakim said. Bret Maxwell, MK Capital managing general partner, called Passport “the clear market leader on many fronts” and praised the company’s “cutting edge platform, expanding revenue growth, and … strong industry partnerships.”

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Passport CEO Bob Youakim and CBDO Khristian Gutierrez demonstrated their mobile payment for transit solution at FinovateEurope 2016 in London.

Passport specializes in providing mobile payment solutions for transportation-related businesses, including parking and transit management. The company’s products include mobile parking-payment and public transportation ticketing technology, digital permits, gateway services for merchants, and integrations to help parking companies more efficiently monitor operations and collect revenue. Passport’s technology is being used in major metropolitan areas in North America such as Chicago, Toronto, Portland, and Salt Lake City.

Founded in 2010 and headquartered in Charlotte, North Carolina, Passport demonstrated its mobile payment for transit solution at FinovateEurope 2016. The company announced earlier this month that the Village of Orland Park had launched its new Passport-powered mobile parking-payment system. And in May, Passport partnered with the Southwest Ohio Regional Transit Authority to develop a mobile ticketing app for buses and streetcars. Also in May, Passport hired former Core Consulting Group CTO Mike Hulthen as its new VP of Engineering.

Finovate Alumni News

On Finovate.com

  • Passport Raises $8 Million in Series B.
  • OurCrowd Wins Red Herring Awards; Announces Partnerships with Bayer, DuPont.

Around the web

  • NCR releases updated version of its transactions processing solution, Authentic.
  • Major update to Xero’s online invoicing technology to help businesses avoid phishing scams.
  • TimeTrade brings its Banking by Appointment functionality to FIS’ mobile banking app.
  • Clover selects DAVO’s Sales Tax App as first app featured on its new blog.
  • ForwardLane and AlphaPoint selected to participate in Accenture’s Fintech Innovation Lab.
  • ENGIE to leverage Kony’s enterprise-mobility platform.
  • SafetyPay increases its volume of transactions paid in cash by 86% compared to last year.

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.

Tradeshift Unveils ‘Go,’ the First B2B Virtual Assistant for Managing Business Expenses and Travel

Tradeshift Unveils ‘Go,’ the First B2B Virtual Assistant for Managing Business Expenses and Travel

Tradeshift_homepage_June2016

When you’re looking to make an impression in a new market, coming up with a first-of-its-kind technology is a great way to start.

Tradeshift, the San Francisco company whose open business network connects 800,000 buyers and suppliers across more than 190 countries, unveiled the world’s first B2B virtual assistant for business spending this week. The solution, Tradeshift Go, eliminates the tedium of requesting, approving, and processing business expenses. The virtual assistant uses a conversational UI to make interaction natural and easy, and its virtual card technology limits fraud, maintains transparency, and ensures administrative control. And courtesy of Tradeshift’s acquisition of chat-based travel assistant app, Hyper Travel, Tradeshift Go can also be used to tackle another business pain point: booking travel arrangements.

Tradeshift_Go_VirtualCardIssuance

During a briefing with Tradeshift’s Sarika Garg, SVP/GM, network and apps, and John Eng, SVP, brand and marketing, the team explained how Tradeshift Go solves a major challenge for middle-sized businesses for whom most procurement solutions were “too heavy and inefficient.” Geared toward businesses with staffs between 50 and 2,000 employees, Tradeshift Go gives Tradeshift_Go_iOS_highresworkers the ability to make business purchases via a pre-approved, single-use virtual credit card that is billed to a corporate card. The employee never sees the corporate card number, and the employer has 100% visibility in real-time on how much and what is being purchased. Compare this, Eng suggested, to the typical situation of the financial officer who doesn’t learn what company funds were actually spent until after they are spent.

Tradeshift Go is available for free at the iTunes store, with Android versions of the app “coming soon.”

Garg and Eng discussed how the solution was an example of how AI and machine learning can “transform age-old problems at work” into “consumer-grade experiences.” It also represents Tradeshift’s new focus on the challenges of medium-sized businesses. The team suggested that additional “skills” beyond travel booking could be added to the Tradeshift Go platform including legal, temporary labor/consultant hiring, and other areas. Tradeshift says it is actively working with partners to add these features to the platform in the future. “We are democratizing access to expertise and buying power of large companies,” Eng said. “(Tradeshift) is changing the landscape of what’s available (to middle market businesses).”

Early feedback has been positive. MyStartupCFO.com, which handles financing and accounting for hundreds of startups, is one of the ten companies piloting Tradeshift Go. “Being nimble and having transparency is important,” MyStartupCFO.com CEO Sandeep Shroff said. “Go gives us both and will save us a ton of time.”

Founded in 2009 and based in San Francisco, California, Tradeshift demonstrated its Instant Payments technology at FinovateEurope 2012 in London. The company has raised $174 million in total capital; its most recent investment was a $75 million capital infusion in June led by Data Collective. Also in June, Tradeshift announced that it was partnering with kompany to automate KYC and KYB verification. The company teamed up with Chinese taxation services firm, Baiwang, in March, the same month it was named to the Tech Tour 2016 Growth 50. Christian Lanng is co-founder and CEO.

Digital Payments Guardian from Prairie Cloudware Goes Live at Multi-Billion Dollar Regional Bank

Digital Payments Guardian from Prairie Cloudware Goes Live at Multi-Billion Dollar Regional Bank

PrairieCloudware_homepage_June2016

Digital Payments Guardian from Prairie Cloudware is now live at a multibillion-dollar regional bank. The digital vault technology facilitates tap-and-pay transactions, tokenizing credit and debit card numbers that are secured in a branded mobile wallet.

“The future of payments is now, and consumers shouldn’t have to wait any longer to gain access to a convenient, secure and preferred mobile-payments experience provided by their bank or credit union,” says Doug Parr, Prairie Cloudware’s chief revenue officer. “While other organizations have recently announced their plans to build and launch bank-branded mobile wallets, Guardian is already live and successfully functioning.” The company emphasized the point by having its CTO Brent Adkisson conduct the first tap-and-pay transaction using his smartphone and tokenized Visa credit card to buy a candy bar at a convenience store.

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CRO Doug Parr demonstrated Digital Payments Guardian at FinovateSpring 2015 in San Jose

The technology gives banking customers the ability to digitally store and manage credit and debit card accounts. The digital vault uses tokenization and NFC tap and pay Android HCE to provide customers with a payment solution that is safe and convenient. “The largest financial institutions in the U.S. are taking control of the mobile relationships they have with customers by issuing their own mobile wallets,” Parr said. Digital Payments Guardian supports this by playing a role in a customer’s everyday transactions, growing the number of “touch points” between financial institutions and their customers.

Founded in 2012 and headquartered in Omaha, Nebraska, Prairie Cloudware demonstrated Digital Payments Guardian at FinovateSpring 2015. In January, the company announced that $3.2 billion Union Bank & Trust would use Digital Payments Guardian to power its digital wallet. And last December, Silicon Prairie News interviewed company CSO Daniel Carnes on the future of cybersecurity. Prairie Cloudware has raised more than $5 million in funding—its most recent investment in the summer of 2015—and includes Croghan Investments and Treetop Ventures among its investors.

Finovate Alumni News

On Finovate.com

  • A Score for Socure: The Digital ID Company Lands Funds from Santander.
  • Digital Payments Guardian from Prairie Cloudware Goes Live at Multibillion Dollar Regional Bank.
  • Tradeshift Unveils Go,the First B2B Virtual Assistant for Managing Business Expenses and Travel.
  • With Ripple, Seven Banks Test Out the Blockchain.

Around the web

  • TSYS and Equinox team up to launch semi-integrated EMV payment solution for Value-Added Resellers.
  • Forbes column on “millennial money mistakes” features Kapitall.
  • iQuantifi founder and CEO Tom White writes about goal-based selling for BankDirector.com.
  • Accusoft wins spot in 2016 SD Times 100 for its innovations in software development.
  • Prairie Cloudware’s Digital Payments Guardian mobile wallet goes live with multi-billion dollar regional bank.
  • Fintech profile interviews Cloud Lending CEO Snehal Fulzele.
  • Fiserv launches Notifi to deliver actionable alerts.

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.

In Third Deal in Four Weeks, Nymbus Acquires Sharp BancSystems

In Third Deal in Four Weeks, Nymbus Acquires Sharp BancSystems

Nymbus_homepage_June2016

At the beginning of the month, cloud-based core-processing platform developer NYMBUS announced that it had bought core data processing solutions provider, R.C. Olmstead. Two weeks later, NYMBUS was back in deal-making mode, acquiring credit union software maker KMR. Two acquisitions in three weeks is a pretty impressive pace. But who knew there was more to come?

Today we learn that NYMBUS has scooped up another company, this time purchasing fellow core-processing vendor, Sharp BancSystems (SBS). Terms of the acquisition have not been disclosed, but Banking Technology reports that the deal is the largest for NYMBUS to date. Along with the company’s other recent acquisitions, NYMBUS now has $200 million in intellectual property driving “tried and tested” banking software for publicly traded FIs.

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Chief Experience Officer Mario Garcia demonstrated NYMBUS at FinovateSpring 2016 in San Jose.

NYMBUS founder Alex Lopatine praised SBS as a “best-in-class” industry pioneer for nearly thirty years. Nevertheless recognizing that its back-end core system was in need of an expensive overhaul in 2014, SBS decided that a partnership strategy would be the best approach and began conversations with NYMBUS in 2015. Interestingly, NYMBUS hired former Sharp BancSystems CEO and president Scott Sharp as its Chief Operating Officer in February, a move that now clearly foreshadowed the acquisition.

“The functionality that allowed banks to be on the top-performance list for all these years is being developed in the NYMBUS core today,” Sharp said. “There are inherent efficiencies built into the single stack application approach with a modern user experience, and there won’t be anything that can touch us in side-by-side comparisons in the very near future,” he explained.

Founded in 2015 and headquartered in Miami Beach, Florida, NYMBUS demonstrated its technology at FinovateSpring 2016. Before its furious June acquisition pace, NYMBUS made headlines with its partnership with Geezeo in February, and launched its credit union collaboration service organization, CUNYMBUS in March. Also in March, NYMBUS was featured in Let’s Talk Payments as part of a look at innovative banking software companies.

Sezzle Scoops Up $500k Investment from Brussels-based E-Merge

Sezzle Scoops Up $500k Investment from Brussels-based E-Merge

Sezzle_homepage_June2016

Courtesy of Brussels-based fintech fund, E-Merge, Sezzle is $500,000 closer to its fundraising goal of $1.5 million.

Sezzle is a startup based in Minnesota whose initial solution, Sezzle Pay, leverages the ACH rails to provide faster, lower cost payments. With the customer’s bank account details, Sezzle Pay can initiate immediate payments at checkout. “That’s attractive because ACH is such a low-cost payment method,” Sezzle founder and CEO Charlie Youakim explained during his company’s Finovate debut this spring. “Our rate is 1.5% plus 15 cents, that’s half the cost of quoted credit and debit card processing.”  He added: “That’s going to bend the ear of the merchant. That’s going to get Sezzle Pay in the checkout.”

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Sezzle CEO Charlie Youakim demonstrated Sezzle Pay at FinovateSpring 2016 in San Jose.

And in order to better compete at the checkout, Sezzle offers 1% rewards for users that click through and pay with Sezzle Pay. This is novel in that while 60% of payments are made with debit cards, “you’d be hard pressed to find a debit card that can give you rewards,” Youakim said. The solution also appeals to millennials, according to Youakim, who noted that only 37% of millennials have a credit card. “The other 63% have no way of getting rewards,” he said.

Writing about the investment at the Sezzle blog, Youakin thanked investors and referenced a number of new hires to help further build the Sezzle platform, including Python, Django, and Swift developers Sukhneer Guron and Rishi Mukherjee, and a pair of “young Ivy Leaguers,” Sean Kilgarriff and Killian Brackey. “We’ve already put some of this capital to use,” he wrote. “I’m excited to see what this team can do now that we have the resources and support that we require to reach our goals.

Founded in January 2016 and headquartered in Minneapolis, Minnesota, Sezzle demonstrated its Sezzle Pay technology at FinovateSpring 2016.  The company is a 2016 semifinalist in the Minnesota Cup, the largest statewide, new-venture competition in the U.S., and was profiled in SuperbCrew.com earlier this month.

Best of Show Winner Quid to Open London Office

Best of Show Winner Quid to Open London Office

Quid_homepage_June2016

San Francisco-based, text-analytics innovator Quid is opening up its first international offices in London.

Quid CEO Neville Crawley said that London was a “perfect base” to better engage European clients such as Siemens, BCG, and the World Economic Forum. He added that the new location would also help his company “benefit from the ideas, energy and diversity of the London tech scene.” The new offices will be in Shoreditch in London’s East End.

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Pictured: Quid Principal Sarah Pilewski demonstrated Opus at FinovateSpring 2016 in San Jose.

Quid specializes in leveraging machine intelligence to read massive amounts of text and then turning that data into interactive visual maps. These maps enable users to better observe and understand patterns and relationships that may have been too difficult to recognize otherwise or too time-consuming and inefficient to try and spot using a manual process.

In her demonstration at FinovateSpring in May, Quid’s Sarah Pilewski called the technology a “platform for understanding complex questions” and used the example of a researcher analyzing the impact of Apple Pay in the retail market. While in the past, work like this would be characterized by what Pilewski called “a room of smart people and a white board” or, more recently, hours of pouring over Google search results. But Quid organizes information based on logical topics which can differentiate a column on the partnership between Apple and Ali Baba from an article on RiteAid’s adoption of ApplePay. This spring Quid previewed its Opus technology, which expands the ability of the platform to analyze and visualize unstructured data from a wide range of sources such as earnings reports, customer feedback, and other text datasets.

Founded in 2010, headquartered in San Francisco with offices in New York City, Quid demonstrated its technology at FinovateSpring 2016, taking home Best of Show honors. The company was named to Fast Company’s 2016 Most Innovative Companies list in February, and has been profiled by the San Francisco Business Times and featured on CNBC. Quid counts Intel, Pfizer, and Walmart among its U.S. customers and has raised $66 million in funding.

Finovate Alumni News

On Finovate.com

  • Best of Show Winner Quid to Open London Office.
  • Reverse Takeover IPO Places ayondo on the Singapore Exchange.
  • Sezzle Scoops Up $500,000 Investment from Brussels-based E-Merge.
  • MX Adds Cash Flow Feature to MoneyDesktop Platform.

On FinDEVr.com

  • Markit Agrees to Acquire Prism Valuation.

Around the web

  • Australia’s Bendigo and Adelaide Bank to deploy cloud development platform from IBM.
  • itBit and Euroclear announce plans to use blockchain technology to provide a settlement service for the London gold market.
  • Trulioo expands to South America as part of Canada’s Fintech Mission to Brazil.
  • IBS Intelligence features Yoyo Wallet as startup of the month.
  • Payworks extends Stripe POS integration effort.
  • Trustly opens London office and hires General Manager from Worldpay.

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.

savedroid AG Completes € 1 Million Seed Round; Announces Beta Launch

savedroid AG Completes € 1 Million Seed Round; Announces Beta Launch

savedroid_homepage_German_June2016

After coining the coolest new word in fintech during its Finovate debut this spring  (i.e., combining “swipe” and “move” to get the new verb “to smoove”) the team behind savedroid announced that its savings app is now available in beta. Those interested in checking out Germany’s first intelligent savings app can register today at savedroid.de and give the technology a try.

savedroid turns everyday activities and transactions into opportunities to save. The free mobile app’s algorithms support lifestyle savings rules called “smooves” that enable users to save a few bucks every time they work out at the gym, or to set aside 50 cents every time they log on to Facebook. The technology also analyzes consumption patterns and offers the user ways to save more or spend more wisely, including opportunities to find better values in everything from high-speed internet service to life insurance to utility bills. savedroid calls its service “personal consumption optimization at zero cost.”

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Pictured: CEO and founder Dr. Yassin Hankir demonstrated savedroid at FinovateSpring 2016 in San Jose.

savedroid also announced that it completed a € 1 million seed round. Participating in the funding were the Investment and Development Bank Rheinland-Pfalaz (ISB) as well as business angel investors including the founders of Infosys and Traxpay, Debjit Chaudhuri and Dr. Michael Rundshagen, respectively. The funds will help support product development, adding new talent to the savedroid team, and investment into the launch of the app. savedroid founder and CEO Dr. Yassin Hankir told Rhein Main Startups that he was “very pleased” to attract such strong investors despite his company’s relative newness.

Founded in 2015 and headquartered in Frankfurt, Germany, savedroid demonstrated its technology at FinovateSpring 2016. Company founder Hankir is also the man who co-founded the goal-savings app Vaamo in 2013. Vaamo demoed at FinovateEurope 2014.