Author: David Penn

Alumni News– January 6, 2015

By David Penn Posted on
Categories: Bluefin Payment Systems, CashStar, Fenergo, Fidor Bank, Global Debt Registry, Insuritas, Kreditech, Malauzai Software, Moven, P2BInvestor, PayPal, Personal Capital, Realty Mogul, Settle, TSYS
  • 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.jpgAccounts Receivable Management takes a look at Global Debt Registry.
  • Moven launches budgeting app on Motorola Moto 360 and Samsung Gear smartwatches.
  • TSYS names Thomas Boyer president of TSS Merchant Solutions.
  • Paymentandbanking.com recognizes Kreditech as FinTech Startup of 2014.
  • St. Louis Biz Talk quotes Malauzai Software’s Robby Ganer in a column on what to expect from mobile banking this year.
  • Gift cards from CashStar to be integrated into eBay Marketplace and PayPal Digital Gift store.
  • Fidor Bank plans for U.S. launch with undisclosed local bank partner.
  • Silicon Republic profiles senior Java developer at Fenergo, Sheila Fernandez.
  • FinovateEurope early bird deadline extended through this Friday, January 9. Lock in your spot and we’ll see you in London.
  • Ukraine-based Settle launches restaurant pre-order app in San Francisco.
  • Personal Capital now manages $1+ billion in investments for clients. It tracks $120 billion for 700k registered users.
  • Northpointe Bank hires Insuritas to power its insurance agency.
  • P2Binvestor names Krista Morgan CEO.
  • Bluefin Payment Systems announces its PCI-validated, point-to-point encryption solution, PayConex, is now certified for mobile payments.
  • Jilliene Helman, founder and CEO of Realty Mogul, earns a spot on Forbes’ list of “30 Under 30 Rising Stars of Enterprise Technology.”
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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Finovate Alums Raise More than $2.2 Billion in 2014

Finovate Alums Raise More than $2.2 Billion in 2014
By David Penn Posted on
Categories: Funding, Fundings

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Finovate alums raised more than $2.2 billion in financing in 2014.  More than three-quarters ($1.8 billion) was equity and a quarter ($400 million) was debt.  

The tally for 2014 shows that financiers continue to find fintech a worthwhile destination for their capital. After bringing in more than $825 million in 2013, Finovate alums increased their fundraising by more than 70% this year.

Here are a few highlights:

Most Raised in a Single Round: The biggest single raise of 2014 is best looked at three different ways. In terms of the best overall job of fundraising, Kabbage’s $270 million debt financing stands out. Lending Club’s $865 million IPO is tops in the “IPO Category” (with On Deck Capital’s $200 million IPO coming in second). Taking home top honors for best single venture round is Credit Karma ($85 million in March), with a $75 million raise from TradeShift and $70 million raise from Prosper close behind.

Biggest Quarter: The biggest quarter for fundraising was Q4, in which more than $1.4 billion was raised. The fourth quarter featured major fundings for Credit Karma ($75 million) and BlockChain ($30.5 million), as well as major IPO-related investments from Lending Club ($865 million), Yodlee ($75 million), Monitise ($77m), and On Deck ($200 million).

Biggest Month: The biggest non-IPO fundraising month was April, where more than $333 million was raised. The majority of the month’s fundraising gains came courtesy of the $270 million in debt financing secured by Kabbage. Including IPOs puts December at the top of the list, courtesy of the IPOs of Lending Club ($865 million) and On Deck.

Q1 – More than $233.4 million raised by eight companies

January

February

March

Q2 – More than $458 million raised by eight companies

April

May

June

  • None

Q3 – More than $194 million raised by 17 companies

July

August

September

Q4 – More than $1.4 billion raised by 26 companies

October

November

December

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Moven Goes Wearable with Motorola Moto 360 and Samsung Gear

By David Penn Posted on
Categories: Moven

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With the announcement that its PFM app will be available on Motorola’s Moto 360 and Samsung Gear smartwatches, Moven is showing just how affectionate fintech’s relationship with wearable technology can be.

As quoted in American Banker, Moven founder and CEO Brett King sees wearable technology as delivering the key real-time financial feedback that is critical in making financially-savvy behavioral changes. Focusing on specific spending decisions rather than psychology, King calls his solution “day-to-day gamification of financial wellness.”

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Moven’s app works differently from traditional PFM budgeting apps in some ways. Referred to as “anti-budget” in a review by VentureBeat, Moven’s technology includes a debit card and an app that tracks spending in real-time. Notifications and alerts are sent when spending nears or reaches pre-set levels. Monthly spending is also tracked by category.
What’s interesting about redesigning mobile apps for smart watches is the way it will sharpen the focus. What information will a consumer want at a glance at the wrist? Because the smaller form factor, developers will need creative ways to communicate PFM data as quickly as consumers can tell time.
Here’s a look at how Moven plans to do it:
Moven’s emphasis on notifications (King calls them “key to engagement”) is in sync with comments King has made previously about wearables and financial technology. In a roundtable discussion led by The Financial Brand’s Jim Marous, King pointed out that the device is just another channel. “I don’t think wearables per se is the key here,” he said. 
“The more important issue is understanding context and what data the customer needs to make a decision. Banks need a feedback or personal data strategy for customers independent of the device.”
Founded in 2011 and based in New York, Moven says it has “tens of thousands” of cardholders, with “hundreds of thousands” having downloaded the app. The company expects to have a total of more than 10 million users by the end of 2015.
Moven announced partnerships with TD Bank and Westpac New Zealand in the second half of 2014, as well as raising an additional $8 million in new funding, taking the company’s total to more than $12 million. Moven demoed its mobile banking technology at FinovateEurope 2013 in London, earning Best of Show honors.

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Alumni News– January 5, 2015

By David Penn Posted on
Categories: Ayasdi, Braintree, Coinbase, Credit Karma, Entersekt, Global Debt Registry, NICE Systems, Sonavation, ThreatMetrix, Toshl
  • 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.jpgCredit Karma to offer Equifax credit scores and reports.
  • American Banker profiles Global Debt Registry.
  • Silicon Valley Tech News interviews Ayasdi CEO Gurjeet Singh.
  • Central Florida Future features Toshl Finance in its look at smartphone apps.
  • Burning Man using Coinbase to accept Bitcoin donations.
  • In case you missed it while you were in Holiday Hibernation: A look back at the 28 Finovate and FinDEVr Best of Show winners of 2014.
  • NICE Systems releases voice biometrics-based Real-Time Fraud Prevention solution.
  • Airbnb, Boxed, Munchery and YPlan enable Braintree’s One Touch buying experience.
  • Authentity blog names ThreatMetrix and Entersekt as authentication companies to watch in 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.

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Continuity Control Taps Peter Rawlinson as Chief Marketing Officer

By David Penn Posted on
Categories: Continuity Control

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A big hire for Continuity Control as the “compliance-as-a-service” company announced earlier this month that Peter Rawlinson would be taking the helm as Chief Marketing Officer.

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Rawlinson had previously been a marketing specialist for AppSense, serving as the company’s VP of Marketing for six years and as Chief Marketing Officer for another year and a half. Before AppSense, Rawlinson spent more than four years as VP of Product Management for OpenText.
Continuity Control specializes in making it easier for financial institutions to meet their regulatory and compliance requirements. The company refers to its technology as a “pre-programmed Universal Remote” that helps banks and credit unions organize and stay ahead of increased government oversight and combat rising compliance costs. Continuity Control’s solution automates the much of the compliance process to make sure the that everything from annual oversight to periodic review is on point.
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Continuity Control was founded in 2008 and is headquartered in New Haven, Connecticut. Andy Greenawalt is founder and CEO. In August the company announced raising $10 million in new funding. In June, Gartner named Continuity Control a “2014 Cool Vendor in Services” for its automated compliance management system for small banks and credit unions. 
Continuity Control demoed at FinovateSpring 2010.

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Jemstep to Power Redhawk Online Advisor

By David Penn Posted on
Categories: Jemstep

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What do you get when you combine online investment advisory with traditional human advisors?

One outcome is Redhawk Online Advisor, a new service made possible due to a partnership between online investment advisory firm, Jemstep, and Redhawk Wealth Advisors, a full-service registered investment advisor.

“We’re excited to add this service to our traditional offering as a way to increase our efficiency as we both broaden and deepen our client relationships,” said Redhawk Wealth Advisors CEO, Dan Hunt. Hunt suggested that clients increasingly expect both online technology and a “personal touch” when it comes to helping them manage their investments.
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Simon Roy, Jemstep president, also underscored the way the technology will help advisors better engage their clients. “Our embedded communications platform keeps advisors informed about their client’s use of the service, and helps them reach out to qualitified prospects more efficiently.”
Redhawk Online Advisor integrates seamlessly with Redhawk’s current services for investors. The technology aggregates client accounts, making it easier for advisors to provide better, more “holistic and unbiased guidance” in the words of Redhawk advisor, Michelle Bertram, and provides actionable advice to help clients reach their financial goals.
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(Above: L-R. Kevin Cimring, CEO,  Matthew Rennie, CTO)
In addition to frequent coverage in both financial and mainstream media, Jemstep launched its Advisor Pro solution in November. The company followed that up with an announcement that it had become a partner on TD Ameritrade’s account management and trading platform, Veo.
With more than 10,000 users, Jemstep is headquartered in Los Altos, California, and was founded in 2008. The company demoed its Portfolio Manager solution at FinovateSpring 2013.

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Alumni News– December 23, 2014

By David Penn Posted on
Categories: CashStar, Continuity Control, EVRY, Green Dot, Heckyl Technologies, Jemstep, Jwaala, Kashoo, Klarna, Larky, Lending Club, On Deck Capital, Silanis Technology, Sonavation, TradeKing, Xignite

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  • The Tech Bulletin profiles Heckyl Technologies.
  • Sonavation announces acquisition of assets of Arkami.
  • Chelsea State Bank launches Larky-powered mobile app.
  • EVRY announces a four-bank, $160 million payments partnership.
  • Kashoo unveils version 4.1 of its cloud accounting and bookkeeping app for iOS. 
  • Walmart to distribute GreenDot prepaid products in 2015.
  • BMO Financial Group’s deployment of Xignite Enterprise wins American Financial Technology Award.
  • IT Qlick takes a look at Jwaala Personal Financial Manager and roomMaster.
  • CashStar teams up with Spafinder Wellness.
  • NY Times DealBook looks at disruptive startups in fintech including Lending Club, On Deck, and TradeKing.
  • Forbes.com column on how companies stand out from the crowd features Silanis Technology.
  • Jemstep to power Redhawk Online Advisor.
  • Continuity Control taps Peter Rawlinson as Chief Marketing Officer.
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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Chelsea State Bank Launches Larky-Powered Mobile App

By David Penn Posted on
Categories: Larky

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Chelsea State Bank has announced that it will deploy a new mobile app, courtesy of a partnership with loyalty/rewards specialist, Larky.

The new app is called The Local Edge. Bank customers who use the app will be able to see and search through discounts available to them from more than 2,000 organizations, entertainment venues, and other community businesses, including Chelsea State Bank.

Andrew Bank, co-founder of Larky, said, “Larky is lucky to work with savvy financial institution partners who believe in creating unique customer experiences and touching their customers through(out) their lives, not just when they’re banking.”
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Larky specializes in helping banks and credit unions provide better rewards and loyalty programs for their customers. Larky’s mobile + web platform enables financial institutions to provide point-of-sale discounts and helps local and national businesses, to send branded, location-based alerts to smart devices, and save users as much as $1,000 a year.
Larky has 12 employees and has raised more than $2 million in funding. We last reported on the company as part of our fall Money 20/20 coverage, noting six new financial institution clients Larky signed up in the fall.
For more insights on Larky implementations, checkout this conversation between Larky’s Bank and Rebekah Monroe, marketing manager for Christian Financial Credit Union. CFCU launched a branded version of Larky’s mobile disc out platform called “Community CA$H” in November.
Founded in 2012 and based in Ann Arbor, Michigan, Larky made its Finovate debut at FinovateFall. See a video of the company’s demonstration of its new Android app.

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EVRY Announces Four-Bank, $160 Million Payments Partnership

By David Penn Posted on
Categories: EVRY

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Five years. Four banks. And one very big deal for EVRY.

In an agreement announced today, EVRY will provide payment and core banking services for four Norwegian banks: Sparebanken Sør, Sparebanken Sogn og Fjordane, Helgeland Sparebank and Gjensidige Bank. The five-year partnership is valued at NOK 1.2 billion, or more than $160 million USD.

According to EVRY CEO Terje Mjøs, the deal is a culmination of the work his company has done with these banks for years. “This is an important milestone in our strategic investment in developing and delivering next generation core banking and payment solutions,” he said.
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Added Geir Bergskaug, Sparebanken Sør CEO, “Investing in next generation core banking and payment services is an important strategic step. The contract will ensure that we have a flexible and cost-effective infrastructure, which will also mean we can take new services to the market more quickly.”
One of the largest IT companies in the Nordic region, EVRY provides IT services for more than 14,000 private and public customers, reaching more than 4 million in the Nordics. Earlier this year, the company signed payment deals with two other Norwegian banks – SpareBank 1 Alliance and Sparebanken Vest – part of an aggressive push to expand its presence in the region.
EVRY will make its Finovate debut in next February at FinovateEurope. For more information about the upcoming conference in London, check out our FinovateEurope 2015 page.

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Qapital Raises $1.3 Million in Seed Round Led by Northzone

By David Penn Posted on
Categories: Qapital

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In a round led by venture capital firm Northzone, Swedish personal finance management innovator Qapital has raised $1.3 million in seed financing. The investment will help the company grow its team as well as prepare its technology for launch in the U.S.

Pär-Jörgen Pärson, partner at Northzone and an early investor in and board member of Spotify, called Qapital “the way an everyday banking service should work.” Added George Friedman, Qapital CEO and co-founder, “Once they use it, I think people will start realizing that managing money isn’t boring.”

“Spending and saving smart should be easy and sometimes even fun.” 
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Currently in private beta, Qapital’s PFM technology combines personal finance management with features like safe balance and a “rule-based” savings and goals planner in a single application. State of the art account aggregation powered by Social Money means that transactional data from linked accounts is transferred and available to see in real-time, which helps “connect everyday savings with everyday results.”
“To save money, you have to make a good trade between now and later, and that’s pretty difficult and abstract,” Friedman said from the Finovate stage this spring. “The real key to our product is that we actually help you change your behavior and save in ways you’ve never done before.”
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Qapital encourages users to focus on specific goals, and uses a rule-based savings approach to accomplish this. For example, one rule may say that every time you buy a product from the local pastry shop – or every time you go the gym to workout – you set aside $10 toward one of your pre-set goals.
And while people think about saving this way all the time, Qapital’s account aggregation makes this savings happen automatically between linked accounts. No worry having to remember to transfer the money in your banking app, or to stash dollar bills in an envelope. As soon as you do the transaction, the savings are allocated to the appropriate goal.
Based in Stockholm Sweden and founded in September 2012, Qapital demonstrated its iPhone app at FinovateSpring 2014 in San Jose. Learn more about the company from our Behind the Scenes feature published this earlier this year.

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Alumni News– December 19, 2014

By David Penn Posted on
Categories: ayondo, Betterment, BrightScope, CardFlight, CREALOGIX, Financial Guard, FutureAdvisor, Holvi, IntelliResponse, Jemstep, Klarna, Loop, Meniga, Open Bank Project, peerTransfer, Personal Capital, SigFig, TradeKing, TransferWise, True Potential, Wallaby Financial, Wealthfront, Xero
  • 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.jpgMoney Facts looks at how TransferWise helps consumers save on money transfer fees.
  • Huffington Post features Matthew Goldman of Wallaby Financial in a conversation on credit card strategies for travelers.
  • PYMNTS.com interviews LoopPay Chief Technologist George Wallner.
  • A comparison between Stockholm and Silicon Valley in The Independent highlights Klarna.
  • Virtual Agent Chat checks in on post-acquisition IntelliResponse.
  • Cardflight’s SwipeSimple joins MasterCard mPOS providers.
  • News.com.au reports: How Xero went from a scribbled figure on a serviette to a $2 billion company.
  • Crealogix and Meniga create Digital Bank and PFM Solution for BNP’s Consors Bank.
  • peerTransfer named 2014 Winner of BostInno’s 50 on Fire Award.
  • Forbes lists Holvi as 1 of 5 Finnish startups to watch.
  • Programmable Web considers how Open Bank Project’s API brings more openness to banking internationally.
  • Ayondo launches ad campaign on 2 major German TV networks.
  • Business Insider features Betterment, Financial Guard, FutureAdvisor, Jemstep, Personal Capital, SigFig, TradeKing, and Wealthfront in a look at the growth of robo-advisors.
  • BrightScope releases its Top 30 401(k) Plans List.
  • Management Today profiles David Harrison, managing partner at True Potential.
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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Finovate Alums Fill Ranks of KPMG’s Fintech Innovators for 2014

By David Penn Posted on
Categories: Betterment, Coinbase, Credit Karma, CUneXus, Dwolla, eToro, FutureAdvisor, Kabbage, Klarna, Kreditech, LearnVest, Lending Club, MiiCard, Motif Investing, Nutmeg, On Deck Capital, PayNearMe, Personal Capital, Prosper, SecureKey, SigFig, SocietyOne, Stockpile, SumUp, The Receivables Exchange, TransferWise, Wealthfront, Xero, Yodlee, Zopa

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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.

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