Finovate Alumni News– April 17, 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.jpgFinovate alums earn spots on Fast Company’s Top 10 Most Innovative in Finance.
  • Qapital featured in Finextra and TechCrunch profiiles. See Qapital demo at FinovateSpring in San Jose, April 29 and 30.
  • Temenos appoints Martin Frick to head APAC.
  • News BTC reports: SecondMarket Welcomes Investors Seeking to Trade 25 BTC Or Greater.
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.

TransferWise Hits £1 Billion Mark for P2P Cross Border Money Transfers

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In the eleven months since May 2013, TransferWise has seen its cumulative total volume of cash transferred cross-border climb from just over £100 million to £1 billion.

Based in London, TransferWise provides peer-to-peer money transfer services in more than 175 different currencies. The platform works by connecting people looking to transfer money from Country A to Country B, with people looking to make the exact opposite transfer.

TransferWise has raised more than $7 million since its founding in 2010. The lion’s share of the capital has come from a Series A round almost a year ago led by PayPal co-founder Peter Thiel’s Valar Ventures.
Said TransferWise co-founder Taavet Hinrikus of the newly-reached milestone: “it shows how much people need modern financial services – something where it is modern, fast and cheap.”
Speaking of modern, fast and cheap, TransferWise is also announcing the launch of its Android app. Said Hinrikus, “there is much more that money on mobile should mean to people and ways they can be in control.”
The latest news from TransferWise shows how the currency transfer business has heated up. Companies like CurrencyFair and Azimo, both Finovate alums also, have announced reaching significant milestones or raising significant VC capital in recent weeks, as well. And now, even more attention is being paid to companies like these as potential partnership with Facebook, should the social networking innovator act on rumors that it is getting into the money transfer game.
TransferWise demoed its technology as part of the FinovateEurope show in 2013. See the company in action here.

Finovate Alums Make Fast Company’s Top 10 Most Innovative in Finance

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Who knew? More than half of the world’s top 10 most innovative companies in finance are Finovate alums.

Don’t just take our word for it. Fast Company published its roster of innovation in the financial space as part of their quest to find those companies that are “creating radical new approaches to move cash from one place to another.” 

And among such widely-known and talked-about entities as Square and Bitcoin, we find more than a handful of innovators who have used the Finovate stage to help show their technology to the world.

Take a look at the companies below, accompanied by Fast Company’s take on just what makes each innovator truly unique.

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Fast Company: “For connecting banks and other clients to frazzled end users when problems arise.”

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Fast Company: “For daring to take on the fee-laden credit card establishment.”

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Fast Company: “For slashing pesky foreign-exchange costs by creating a transparent peer-to-peer network.”

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Fast Company: “For establishing a single login for web users and taking a giant leap toward eradicating the scourge of the Internet: passwords.”
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Fast Company: “For luring international customers with a mobile-payment network that lets them purchase with a simple click.”

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#10 eToro
Fast Company: “For creating a social network that lets traders emulate those with skin in the game.”
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Finovate Alumni News– April 16, 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.jpgWhere the Alums Are: A Remembrance of FinovateSpring Past. Read what the innovators of FinovateSpring 2013 have been up to in the year since.
  • Betterment raises $32 million in Series C round.
  • Realty Mogul crowdfunds Hard Rock Hotel Palm Springs.
  • Partnership with Clearly Loans brings Nostrum Group into the secured loan processing business.
  • Credit Sesame launches free credit and identity protection service.
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.

Where the Alums Are: A Remembrance of FinovateSpring Past

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It is hard to believe that it is almost time for FinovateSpring 2014.

There’s still plenty of time for you to get your tickets to our upcoming event in San Jose, California on April 29 and 30. Our final Sneak Peek preview post is up, all the companies who were prepping under the radar are now out of stealth, and we can’t wait for you to see what this year’s spring crop of fintech entrepreneurs and innovators has in store.

Before we do, however, let’s take a moment to take a look back at last year’s FinovateSpring alums. As we scrolled through blog archives, several themes jumped out: the appetite for startups remains as passionate as ever, with three of our Spring 2013 alums being acquired by such financial sector potentates as Intuit and PayPal. And venture capitalists continue to see innovation in this space as a more than worthwhile investment, with 20 separate fundings for Spring 2013 alums

We’ve grouped the achievements into four categories: Exits, Fundings, Awards, and Acquisitions. Enjoy!

EXITS
  • Jack Henry buys Banno for undisclosed sum
  • The rumors are true: eBay’s PayPal acquires Braintree for $800 million in cash
  • Intuit buys tax planning/preparation specialist GoodApril
  • TaxAct acquires Balance Financial
FUNDINGS
  • CardFlight secures $1.6 million in seed funding from ff Venture Capital
  • Encap earns seven-figure investment from ProVenture Seed
  • EyeVerify earns $2.3 million in Series A funding
  • Jemstep raises $4.5 million in Series A round
  • Kabbage brings in $270 million in debt financing to provide small businesses with funding of their own
  • Kabbage brings in $75 MIllion in debt financing
  • Leaf raises $20 million from Heartland Payment Systems
  • Alternative lender LendUp raises $14 million in new funding
  • D3 Banking creator Lodo Software Brings in $3 million
  • Narrative Science secures $11.5 million in Series C funding
  • OpenCoin wins investment from Google Ventures, IDG Capital Partners
  • P2BInvestor raises $1.2 million in Series A round
  • PayNearMe leverages Family Dollar Partnership; raises $20 million
  • PayNearMe raises $10 million in Series D funding, launches Express Merchant Onboarding Option
  • Prestadero raises 5 million pesos ($400,000 USD) in first round of funding
  • Quantopian raises $6.7 million in Series A round
  • Realty Mogul raises $9 million in round led by Canaan Partners
  • SeedInvest raises $2 million in crowdfunded investment campaign
  • SeedInvest Raises $1 million in round Led by Jumpstart New Jersey Angel Network
  • Zooz Closes $2 million Series A round Led by XSeed Capital
AWARDS
ACQUISITONS
  • OpenCoin acquires SimpleHoney
  • Kofax acquires data integration software provider Kapow Technologies
  • NICE to acquire Causata to enhance customer experience management

Betterment Raises $32 Million in Series C Round

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In a funding round that more than tripled the amount raised in its previous round, wealth management innovator Betterment raised $32 million from a sizable group of both new and existing investors.

Betterment’s total capital now stands at $45 million. Participating in this latest round were:

  • Anthemis Group
  • Bessemer Venture Partners
  • Citi Ventures
  • Globespan Capital Partners
  • Menlo Ventures
  • Northwestern Mutual Capital
Among the goals for the new capital cited by Betterment CEO Jon Stein is expanding the company’s range of products. This likely includes a new product for RIAs, Betterment Institutional, that the company plans to release soon.
In an interview with Forbes.com, Betterment CEO Jon Stein said he expects his company to have more than $1 billion under management by the end of 2014. Betterment currently has about half that amount under management right now, and Stein says that AUM is growing at a rate of 10% a month.
Betterment works by investing its customers in low-cost, index exchange-traded funds. With investments ranging from short-term U.S. Treasury bonds to stocks from emerging market countries, investors can achieve broad diversification without single-stock or liquidity risks. Asset allocation is personalized based on the short or long-term goals of the individual investor.
The company stresses that its goal is not to beat the market on a risk-adjusted basis. Instead Betterment practices “passive investing,” looking to deliver market returns at a reasonable price that is lower than that offered by traditional investment managers.
Betterment has no minimum investment or minimum account balance, though account balance is a factor in determining pricing. The company charges a management fee ranging between 0.15% and 0.35% that covers everything from trades to advisory service. The company has 30,000 customers, with an average age of 36. However, 20% of Betterment’s customers are over the age of 50.
Founded in 2008 and based in New York City, Betterment was a Best of Show winner at FinovateFall 2010. See a demo of their presentation here

Finovate Alumni News– April 15, 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.jpgTransferWise announces more than $1 billion in P2P transfers.
  • Insuritas picked by Nutmeg State Federal Credit Union to open and manage its turnkey insurance agency. See Insuritas demo at FinovateSpring in San Jose.
  • Streetwise reports: HelloWallet Signs Another Big Deal with Aon Hewitt.
  • CardFlight wins Electronic Transactions Association’s 2014 Technology Innovation Award.
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.

SeedInvest Raises $2 Million in Crowdfunded Investment Campaign

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Crowdfunder, fund thyself.

That’s the strategy of crowd funding specialist, SeedInvest, which announced today that it is seeking to raise the balance of its $3 million Series A round from its own community of investors.

SeedInvest co-founder and CEO Ryan Feit explained: “Given that SeedInvest allows individuals to invest alongside VCs, we decided to eat our own dog food and hold the last millions for our own investors.”

SeedInvest has $2 million already invested, courtesy of investors such as Archer Gray, Avenue A Ventures, Great Oaks Venture Capital, Krillion Ventures, and Scout Ventures. The company is gearing up to take advantage of a key feature of the JOBS Act that will allow non-accredited investors to participate in crowd funding platforms like SeedInvest later this year. Feit pointed specifically to the new funding as enabling the company to service what he expects to be a significant increase in the number of potential new investors.

An equity crowd funding platform, SeedInvest focuses on directing investors toward startups and small businesses that are seeking funding. Among the companies that have received investment via SeedInvest are Vengo, a POS kiosk for digital media, and CapLinked, a PayPayl-like platform for businesses. SeedInvest was founded in January 2012, and is based in New York City.
SeedInvest demoed its technology at FinovateSpring 2013 in San Francisco. See their video here. And for more information about our upcoming FinovateSpring event, April 29 and 30 in San Jose, visit our FinovateSpring 2014 page.

Finovate Alumni News– April 11, 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.jpgFinovateSpring 2014 Sneak Peek: Part 6 is now up.
  • Jumio partners with IdentityMind to provide anti-money-laundering Bitcoin compliance for exchanges.
  • FIS launches GenNOW to make it easier for mobile and prepaid card users to access their funds from FIs.
  • Aon Hewitt and HelloWallet partner to help employers bring financial wellness to their workforce.
  • PayPal partners with Samsung to enable users to pay with their fingerprint, launches app for smartwatches.
  • Blackhawk Network recognized for Best Prepaid Innovation at Innovation Project 2014 conference awards.
  • CU Times looks at Citizens Business Bank’s success with Guardian Analytics’ fraud prevention tools.
  • App Developer Magazine looks at Lighter Capital’s RevenueLoan.
  • Birdback and Affiliate Window bring the ease of online offers to offline retailers based in Europe.
  • Betterment’s mobile app makes mobile PIN login available for users.
  • Bill.com wins Monarch Innovation Award in Innovative Industry Partner category.
  • BizJournals profiles Kabbage co-founder and COO, Kathryn Petralia.
  • American Express Open Forum takes a look at ZenPayroll. See them demo at FinovateSpring in San Jose.
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.

FinovateSpring 2014 Sneak Peek: Part 6

FinovateSpring 2014 Sneak Peek: Part 6

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Welcome to the finale of our FinovateSpring 2014 Sneak Peek series. If you’re just joining us, then you might want to check out the previous five installments of our Sneak Peek (see below). There’s no better way to get to know the entrepreneurs and innovators who will be demoing on the Finovate stage on April 29 and 30 in San Jose.

You can find out more about our upcoming event – including our new location and locale – on our FinovateSpring 2014 page here.

Today we wrap up the series with eight more companies, starting with transaction management specialist Avoka and ending with WePay, an innovator in risk analysis for merchants, crowdfunders, and software makers. In between, we’ll talk security and digital currencies, alternative lending and credit decisioning, credit card vaults and Insurance Buying 3.0.

Enjoy!

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Avoka TransactWEB – an Omni-Channel 2.0 customer transaction experience form the leaders in SmartForm & Transaction Management.
Features:
  • Omni-Channel 2.0 – Seamless crossover between channels in a single transaction
  • Integration with ID verification and signature services for maximum convenience
  • All delivered without programming
Why it’s great:
Avoka TransactWEB delivers an Omni-Channel 2.0 experience for account opening, loan origination, etc. without programming.
Presenters:
Phil Copeland, CEO and Co-Founder
Phil is responsible for the company’s business strategy and worldwide operations.
Jeff Kalicki, Account Manager
Jeff is comfortable presenting technology to all levels of business, as well as leading architecture discussions.

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Coinbase is a bitcoin wallet and platform where merchants and consumers can transact with the new digital currency bitcoin.
Features:
  • The ability to debit customers for a more convenient checkout experience
  • The ability to set individualized merchant permission controls via API keys
  • The ability to use recurring billing
Why it’s great:
Coinbase offers innovative tools that allow merchants to accept bitcoin payments easily and securely.
Presenters:
Roger Gu, Business Development Manager
Roger leads payment partnerships at Coinbase. He previously worked in Strategy and Development at Visa and in Investment Banking at Marcum Cronus. Roger holds an A.B. in Economics from Princeton.
Nahid Samsami, Business Development Manager
Nahid previously worked as a senior product manager at Playdom, acquired by Disney Interactive. She began her career at Bain and Company and holds a degree in Economics from Stanford University.

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CUneXus’ unique lending platform integrates at all digital and physical touch points, delivering an omnichannel borrowing experience, proven to significantly increase loan volume and reduce acquisition cost.
Features:
  • Customers can easily access loans anytime, anywhere – with no loan application
  • Lenders enjoy increased product penetration, loan volume, and ROI
  • Simple integration with online and mobile banking
Why it’s great:
CUneXus helps lenders drive substantial loan volume, by providing customers a refreshingly simple on-demand borrowing experience across traditional, online, and mobile banking channels.
Presenters:
Dave Buerger, Co-Founder and President
Dave is a finance and marketing visionary who has been recognized by CUNA and CUES for award-winning strategies that have yielded record loan volumes and response rates.
Darin Chong, Co-Founder
Darin is an expert strategist and has been instrumental in the development of the company’s Comprehensive Pre-Screened Lending (CPL) strategy.

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OnBudget develops PFM tools, Mobile Apps, and Bank Companion Cards that give banked consumers simple budgeting tools and banks a profitable way to monetize them.
Features:
  • Uniquely profitable prepaid product simplifies banked consumers’ budgeting needs
  • Auto learns users’ spending habits, suggests budgets
  • Analyzes spending trends, offers insights/savings opps to help users stay on track
Why it’s great:
OnBudget’s intuitive and interactive solution delights banked consumers by simplifying their budgets. It’s a bank companion card that provides real consumer value at no cost to the consumer.
Presenter:
Jim Collas, President and CEO
Jim is a personal computing pioneer with nearly 30 years of senior exec
utive experience in computers, prepaid cards, and consumer markets. He is a successful entrepreneur and visionary leader.

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Spreedly is the independent credit card vault that works with any PCI end point API. We provide all the benefits of tokenization without gateway lock-in.
Features:
  • Quickly extend your business to non-gateway end point APS’s (hotel, ticketing, transportation, restaurants)
  • Automatically update lost/expired cards
  • One integration, 60+ gateways, 70+ countries
Why it’s great:
Spreedly gives you all the flexibility of having your own credit card vault without the headache of PCI compliance or building your own integrations.
Presenter:
Justin Benson, CEO
Justin specializes in scaling startups from concept to IPO/acquisition. He’s experienced in driving direct revenue and leveraging partnerships to achieve double-digit SaaS revenue growth.

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Sureify educates consumers on their life insurance options, helps them build a plan that’s right for them, and take the next steps to get covered.
Features:
  • Learn about life insurance from simple text, visuals, & videos
  • Unbiased, third-party source for life insurance education
  • Define needs and build the right plan for you quickly
Why it’s great:
Sureify is the only unbiased, third-party source for life insurance education online.
Presenters:
Dustin Yoder, VP of Business Development
Dustin leads strategy, product and business development. Loves talking with our customers, prospecting all possible channels, and relationship building in every part of our business.
Chris Cichon, Marketing
Chris drives marketing and customer experiences. Loves digital marketing and growth hacking; dabbles in front-end web development.

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True Link protects vulnerable seniors from predatory marketing and fraud.
Features:
  • Seniors are victims of $100bn/year in scams
  • Seniors are the largest, fastest growing market in the U.S.
  • True Link is the killer app for the 43 million people caring for their aging parents.
Why it’s great:
Everyone deserves a safe way to spend their money without having to worry about scams, fraud or spending mishaps.
Presenter:
Kai Stinchcombe, Founder and CEO
Kai is a data scientist and entrepreneur who created the True Link Prepaid Visa Card after discovering that his grandmother was the victim of several credit card frauds.

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WePay enables marketplaces, crowdfunding sites, and business software makers to offer payment services to their customers without worry about risk or loss.
Features:
  • WePay’s Veda risk engine leverages big data to make better decisions
  • WePay’s Innovative Risk API collects risk data from platform partners
  • Veda analyzes social footprint to verify users
Why it’s great:
Through its proprietary Veda social risk engine, WePay gives platforms a flexible payment API that provides a great user experience while still taking on all their fraud risk and compliance burdens.
Presenter:
John Canfield, VP Risk Management
John leads all our risk strategy, processes and tactics at WePay. He holds a Masters and Bachelors in Electrical Engineering and Computer Science from MIT and an MBA from Stanford.

Finovate Alumni News– April 10, 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.jpgBoost Mobile waiving check loading, money transfer fees for its Wipit-powered mobile wallet through September.
  • Banno CEO Wade Arnold wins CEO of the Year award from Technology Association of Iowa.
  • CBS News takes a look at Dynamics‘ “credit card with a keypad.”
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.

OTP Banka Slovakia to Deploy CRIF Credit Framework

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Add one more bank to the hundreds of financial institutions in more than 20 countries currently relying on CRIF to manage their lending business.

OTP Banka Slovakia announced this week that it was deploying the CRIF Credit Framework, replacing its old loan approval system with a technology that represents “global best practices in lending processes and risk assessment,” according to bank CRO, Peter Leško.

In addition to the technology itself, CRIF’s experience in helping banks make the transition to more sophisticated loan origination and credit management solutions also helped OTP Banka Slovakia make the switch. Leško cited CRIF’s “flexible software framework” and the company’s ability to “act on site in local language” as key to providing both the support and the independence the bank wants.

This last point echoes what we heard from CRIF in the days leading up to their Finovate debut in February at FinovateEurope 2014. “Banks are more and more requesting the ability to make changes,” CRIF marketing director Sheila Donahue explained in a pre-demo briefing. “They don’t want to be dependent on vendors or have their hands tied.” Read more from our briefing with CRIF here.
OTP Banka Slovakia is part of the OTP Group. Based in Bratislava and with more than 600 employees, the bank has a network of 63 branches throughout Slovakia. OTP Banka Slovakia reported assets of €1.4 billion as of the end of 2013.
CRIF was founded in Italy in 1988. The company’s 2013 revenues were €305 million. More than 2,400 banks and financial institutions worldwide use CRIF’s technology daily.