Finovate Alumni News

On Finovate.com

  • GBG Group Agrees to Acquire IDScan Biometrics
  • Check out this week’s FinDEVr APIntelligence.
  • Kreditech Launches Online POS Financing Solution
  • Fenergo Adds Enhanced Rules, Remediation to its CRS Compliance Solution
  • From CEO to Deputy Mayor, Xendpay’s Rajesh Agrawal Heads to City Hall

Around the web

  • The Paypers interviews ACI Worldwide’s Craig Saks, group president of strategic products.
  • The Media Line’s column on CyberWeek 2016 at Tel Aviv University features ThetaRay.
  • PYMNTS.com chats with Jeff Hampton, TSYS director of product marketing.
  • Greg Smith, Blooom president; Aaron David Bauer, Envestnet Executive MD; and Andy Swan of LikeFolio earn spots on Investment News’ 40 Under 40 list.
  • Matt Fellowes resigns as chief innovation officer at Morningstar—which bought HelloWallet in 2014—to build retirement software.
  • ID Analytics secures patent for systematic detection of fraud rings.
  • Fenergo enhances CRS compliance solution with enhanced rules and remediation.

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.

IBM Opens Bluemix Garage in New York City

IBM Opens Bluemix Garage in New York City

IBM_Bluemix_homepage_June2016

In opening its latest Bluemix Garage in New York City, IBM continues to put money where developers, software designers and others are. The New York City location will be IBM’s sixth, with garages currently in operation in San Francisco, Toronto, London, Nice, and Tokyo. IBM is partnering with Galvanize, who will host the New York garage on its new New York campus. Other locations are said to be in the works for the second half of 2016.

Galvanize co-founder and CEO Jim Deters said that locating the Bluemix Garage in New York City, within the Galvanize community, “allows our strong network of developers and startups to leverage the power of the cloud and the expertise of IBM to competitively innovate products and apps in the growing fintech and blockchain spaces.” Galvanize runs a network for developers, coders, and technology entrepreneurs, and has more than 1,800 members across seven campuses.

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Pictured (left to right): IBM’s Alex Baghdjian, senior offering associate, financial markets & wealth management, and Rob Stanich, global wealth management offering manager, demonstrated Client Insight for Wealth Management.

IBM’s cloud-development platform, Bluemix, has more than 140 tools and technologies for developing solutions leveraging big data, mobile, analytics, Watson, IoT, and more. With more than 120,000 applications launched from the platform every month, the open standards-based platform  is one of largest public cloud deployments in the world. Within its Bluemix Garages, IBM is especially interested in blockchain-related projects such as those pursued by the Mizuho Financial Group, which is working with the IBM Bluemix Garage in Tokyo to develop settlement technology using the blockchain. Prashant Bhuyan, CEO of Alpha Modus, an investment technology firm, credited Bluemix for helping his company launch “transformational apps that leverage cognitive analytics with unbelievable time and efficiency.”

Founded in 1911, IBM made its Finovate debut at FinovateSpring 2016, demonstrating its Client Insight for Wealth Management technology. IBM’s cloud technologies have been in New York since 2014, when IBM Cloud was deployed to power Digital.NYC—an online hub that connects more than 8,000 startups within New York City’s startup and technology community.


If you’re into fintech development, then be sure to put our upcoming developer’s conference, FinDEVr 2016 Silicon Valley, on your calendar. Join us October 18 and 19 for two days of the latest in fintech APIs, case studies, integrations, and more.

Finovate Alumni News

On Finovate.com

  • IBM Opens Bluemix Garage in New York City
  • Lending Club Appoints Scott Sanborn as CEO
  • Canadian Government Selects OutsideIQ to Bring DDIQ to Brazil and London

On FinDEVr.com

  • Avalara Adds New Stripe Integration, Earns Dual Honors at American Business Awards

Around the web

  • Jack Henry & Associates launches new app collaboration platform, JHA Marketplace.
  • Digital Insight gives customers pre-login look at bank balances via their mobile banking app.
  • Absa Stockbrokers and Portfolio Management has implemented the Secure Document Repository solution from Striata.
  • TSYS Named to The Civic 50 in 2016

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.

Avoka Locks in $12 Million in New Investment

Avoka Locks in $12 Million in New Investment

Avoka_homepage_June2016

Digital customer acquisition specialist and multiple Best of Show winner Avoka has picked up $12 million in new investment. The venture round featured participation from a variety of institutions and professional fintech investors in Australia and is the first major funding for the company since 2013. Avoka CEO Phil Copeland said the new investment will be used to “accelerate our already strong organic growth prospects, expand our product capabilities … and explore new markets.”

With regard to products, Copeland highlighted Avoka Transact, saying that the investment will help the company continue to build and develop the technology, which he called “the leading single platform for driving customer-centric digital transformation.” He added that part of further developing his company’s solutions will be to integrate fraud, identity management, fund transfer, and core banking functionality into the platform.

Avoka_stage_FS2016

Avoka’s Kevin Mortimer, technical director, and Derek Corcoran, chief experience officer, demonstrated Avoka Transaction Effort Score at FinovateEurope 2016 in London.

Underscoring the importance of growth and expansion to the company’s past and future, Copeland noted that not only did 65% of Avoka’s revenue come from North American and European markets, but also that the percentage “is expected to grow substantially” in the wake of this latest funding round. Advising on the deal was Moelis & Company whose managing director, Ben Wong, called the company “a great example of an Australian technology company with a global footprint based on best-of-breed technology being adopted by global corporate customers.”

Recent headlines for Avoka include a new partnership with fellow Finovate alum Mitek to build a new mobile onboarding solution in May. In April, Beyond Bank won the Celent model bank award with a customer-engagement platform from Avoka, the same month Avoka partnered with Finovate alum eSignLive to enable 100% digital customer acquisition. Avoka was named to the Top Ten FinTech Worldwide by KPMG in March.

Founded in 2002 in Sydney, Australia, and co-headquartered in Denver, Colorado, Avoka demonstrated its Transaction Effort Score (TES) at FinovateEurope 2016. The company has more than 95 working in offices in Sydney, Denver, and London and includes 2 global banks; 5 of the top-50 banks in the U.S.; and 4 of the top-10 banks in Australia among its more than 80 customers.

Klarna Raises $35 Million in “First Small Step” into Debt Financing

Klarna Raises $35 Million in “First Small Step” into Debt Financing

Klarna_homepage_June2016

One small step for Klarna. One giant leap for fintechs considering financing beyond equity investment.

The Swedish payments innovator is raising $32.2 million (300 million crowns) via a subordinated-note sale to “a limited number of large Nordic investors.” The 10-year, floating-rate notes come with an initial 4% coupon, which is based on the 3-month STIBOR plus 4.5%.

Speaking about the financing, Klarna’s Erik Engellau-Nilsson said that the funding was the company’s “first small step to a wider presence in debt capital markets.” The goal of the financing was first to fund Klarna’s accelerated growth, which Engellau-Nilsson credited to expansion into U.S. and U.K. markets. He said the second goal was to “test the debt capital markets, and see what the appetite was like.”

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Jakob Söderbaum, SVP sales, demonstrated Klarna at FinovateSpring 2012 in San Francisco.

Testing the debt capital market will help Klarna diversify its funding sources. The company has raised more than $285 million in equity including £90 million in private equity to finance the acquisition of Sofort in 2014.

While much of the growing use of debt financing in fintech can be attributed to the rise of alternative lenders who may be institutionally more comfortable with debt, Klarna’s latest financing is a reminder that the debt capital markets are an option for a wide variety of fintechs. Consider the $60 million debt financing deal for Finovate alum Yapstone (payments); the $2.5 million debt financing for Socure; and $3 million in venture debt for ID.me (authentication); and the $1 million in debt financing for DeviceFidelity (hardware). Ahead of this latest financing, Klarna was believed to have a valuation of more than $2 billion.

Available at 65,000 online stores and with 45 million consumers using the technology, Klarna enables more efficient e-commerce by allowing shoppers to receive goods first and then pay for them within 14 days of delivery. Klarna assumes all credit and fraud risk, making the process safer for online merchants, and requires only minimal, top-of-mind information from consumers (i.e., name and address). The company says its revenues grew by 27% year-over-year (2.2 billion crowns in 2014 versus 2.8 billion crowns in 2015) and expects revenue gains of 40% in 2016 due in large part to Klarna’s U.S. expansion last fall.

Founded in 2005 and headquartered in Stockholm, Sweden, Klarna demonstrated its payment technology at FinovateSpring 2012. In June, the company was named to the CNBC Disruptor 50 list for a second year in a row and in May, Klarna announced that its payment-processing technology would be made available to brick-and-mortar merchants. The company announced a partnership with UK e-commerce host, EKM in April, the same month Klarna earned a spot on FinTechCity’s inaugural FinTech50 Hall of Fame.

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.