Ripple Raises $200 Million in Series C Investment

Ripple Raises $200 Million in Series C Investment
By David Penn Posted on
Categories: Ripple

In a Series C led by Tetragon, payments innovator Ripple has picked up an investment of $200 million. Featuring participation from SBI Holdings and Route 66 Ventures, the round takes the Ripple’s total capital to more than $321 million, and gives the firm a valuation of $10 billion.

In a statement, company CEO Brad Garlinghouse explained that the funding will help fuel expansion of the company’s “open developer platform for money” Xpring, as well as enable Ripple to add talent to the team.

“We are in a strong financial position to execute against our vision,” Garlinghouse said. “As others in the blockchain space have slowed their growth or even shut down, we have accelerated our momentum and industry leadership throughout 2019.”

The funding is timely for Xpring, which Ripple recently configured to make it easier for both crypto and non-crypto developers to add payments functionality into mobile apps. The new platform leverages Ripple’s XRP Ledger, Interledger, and Web Monetization technologies that give developers tools, services, and programs that empower them to develop and power wallets and exchanges, as well as take advantage of monetization opportunities in content and gaming.

The investment also comes as Ripple completes a year in which its RippleNet global payments network added more than 300 customers. Additionally, Ripple’s $50 million dollar strategic partnership with MoneyGram, announced this summer, has enabled the company to demonstrate how its On-Demand Liquidity solution leverages Ripple’s digital asset XRP to help MoneyGram boost volume on international money transfers. As of November, MoneyGram reported that is moving 10% of its Mexican peso trading volume via Ripple’s technology.

“Our partnership with Ripple is transformative for both the traditional money transfer and digital asset industry,” MoneyGram Chairman and CEO Alex Holmes said. “For the first time ever, we’re settling currencies in seconds.”

Chris Larsen, co-founder of Ripple, introduced the Ripple protocol at FinovateSpring 2013 via a company called OpenCoin. Headquartered in San Francisco, California, Ripple began the year by earning a spot on the 2019 Forbes Fintech 50 Roster. In addition to its partnership with MoneyGram, Ripple announced in August that PNC, the eighth largest bank in the U.S. had begun using its RippleNet network for cross-border payments – the first U.S. bank to do so.

On the international front this year, Ripple has teamed up with Vietnam’s TPBank, partnered with Brazilian brokerage Frente Corretora de Cambio, and inked a cross-border remittance agreement with India’s Federal Bank.

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Finovate Alumni News

By David Penn Posted on
Categories: Artivest, Asseco, Bankjoy, DataSine, Nutmeg, PaySend

Around the web

  • Bankjoy inks partnerships with a trio of Indiana and Texas-based credit unions: Las Colinas FCU, Fort Financial CU, and Mobility CU.
  • Polish telecom Cyfrowy Polsat to take minority stake in Asseco Poland.
  • Nutmeg CEO Martin Stead will leave his post in early 2020, and will be replaced by CFO and COO Jason Alexander.
  • Datasine forges technology partnership with digital marketing platform Mapp.
  • MacKay Municipal Managers chooses open architecture digital platform from Artivest for its financial advisors.

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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Deluxe Acquires Fiserv’s Remittance Solutions Assets

Deluxe Acquires Fiserv’s Remittance Solutions Assets
By Julie Muhn (@julieschicktanz) Posted on
Categories: Deluxe, Fiserv

Business technology company Deluxe announced today it will acquire Remittance Solutions assets from Fiserv. Terms of the agreement were not disclosed.

The Minnesota-based company will use the new tools, which include lockbox processing, to enhance its Treasury Management portfolio.

As part of the agreement, Deluxe will take over Fiserv’s lockbox businesses in five locations and Fiserv will become a reseller of Deluxe lockbox processing.

Deluxe has been busy in the payments arena this year. The company hasa signed more than 25 new payments deals so far this year. “This deal allows Deluxe to extend its expertise and reach with the addition of a reseller arrangement through the banking sales channel of Fiserv,” said Barry McCarthy, Deluxe President and CEO.

“Deluxe is a provider of choice in the remittance processing industry, with impressive scale, geographic reach and resources,” said Todd Horvath, President of Bank Solutions at Fiserv. “Together, we will drive enhanced value for current and future clients and create more opportunities for our people.”

Founded in 1915, Deluxe has a two-tiered approach serving small businesses and financial institutions. The company offers its 4.8 million small business customers products such as incorporation services, logo design, website development and hosting, email marketing, social media, search engine optimization and payroll services, and customized checks and forms. On the bank side, Deluxe serves its 4,600 financial institution clients with data analytics, customer acquisition and treasury management solutions, fraud prevention and profitability tools, and checks.

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: Currency Cloud, Deluxe, Fiserv, PayPal, Tradeshift

On Finovate.com

  • Deluxe Acquires Fiserv’s Remittance Solutions Assets

Around the web

  • Bobsguide interviews Currencycloud CTO Ed Addario.
  • Coindesk features how Tradeshift leverages Ethereum to lower cross-border transaction costs.
  • PayPal’s GoPay acquisition is complete

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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NTT Data Acquires Digital Services Provider NETE

NTT Data Acquires Digital Services Provider NETE
By Julie Muhn (@julieschicktanz) Posted on
Categories: NTT Data

IT services provider NTT Data announced today it has acquired NETE, a Virginia-based digital design services firm.

The deal, which marks NTT Data’s 19th acquisition, is set to close for an undisclosed amount later this year. The company will bring on NETE’s 300 employees and will leverage NETE’s expertise in public healthcare to build out its services in that sector. NETE will maintain its branding but will now be known as NETE, an NTT Data Company.

“NETE clients and employees will benefit from access to the vast resources of a top 10 technology and business services provider, including global R&D, infrastructure and investments in digital transformation and innovation,” said Sandeep Somaiya, Managing Director of NETE. “The depth and breadth of NTT DATA’s commercial experience among healthcare providers, health plans and life sciences, as well as its strong reputation in the public sector, will open the door for additional opportunities for NETE customers.”

Somaiya will be a part of the NTT Data public sector leadership team.

A well-established player in the industry, NTT Data was founded in 1988 and has 120,000 employees. At FinovateFall earlier this year, the Japan-based company demoed Mirror, a new service that leverages AI to help caregivers make financial, medical, and lifestyle decisions on behalf of their clients.

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: Baker Hill, eToro, NICE Systems, NTT Data, Temenos

On Finovate.com

  • NTT Data Acquires Digital Services Provider NETE.

Around the web

  • Temenos introduces robo-advisor and goal-based investing apps to its Temenos Infinity for Retail Banking.
  • eToro launches the shopping cart portfolio, an investment portfolio with global e-commerce stocks.
  • Taiwan’s Chailease selects NICE Actimize for AML compliance program.
  • Aite Group names Baker Hill NextGen Best-in-Class Commercial Loan Origination System.

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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TransferWise Inks International Payments Deal with EQ Bank

TransferWise Inks International Payments Deal with EQ Bank
By Julie Muhn (@julieschicktanz) Posted on
Categories: TransferWise

EQ Bank, the digital subsidiary of Canada’s Equitable Bank, has signed a partnership agreement with TransferWise which will see the latter underpin EQ Bank’s international payments, reports Alex Hamilton of Fintech Futures, Finovate’s sister publication.

EQ Bank has integrated TransferWise’s API directly into their infrastructure. EQ Bank customers will be able to send money from their Savings Plus account at “the real exchange rate,” paying a “small, transparent TransferWise charge.”

Kristo Käärmann, CEO and co-founder of TransferWise, said that Canadian consumers stand to lose a “staggering” $330 per person to hidden fees when exchanging currencies.

“This needs to stop,” he said. “We ultimately want to ensure that everyone has access to fast, cheap, and transparent international money exchange. We’re thrilled to have found a like-minded partner in EQ Bank.”

EQ Bank recently completed the move of its Temenos core banking system into the cloud. The digital bank utilizes Microsoft’s Azure cloud platform, using software hosted by HP.

“From hidden mark-ups in the exchange rate, to paying multiple fees and lengthy delays, for too long Canadians haven’t been getting the best value for their dollar when sending money abroad,” said Andrew Moor, president and CEO of Equitable Bank.

“At EQ Bank we continually seek ways to remove unnecessary complexities and fees from outdated banking structures to put more money back in the hands of our customers. As TransferWise shares these important values, they are the perfect partner to help us achieve our goal.”

Transferwise, which most recently demoed at FinovateEurope 2013, was founded in 2010 and is headquartered in London. The company has raised more than $770 million.

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Coinbase’s New Partnership Helps Give Back with Crypto

Coinbase’s New Partnership Helps Give Back with Crypto
By Julie Muhn (@julieschicktanz) Posted on
Categories: Coinbase

To celebrate the season of giving, digital currency wallet and crypto management platform Coinbase announced a partnership that will create a way for its users to donate their crypto.

Coinbase has chosen to integrate with micro donations platform DustAid to provide its users in the U.K. with an option to donate to their choice of three charities:

  • NSPCC, a children’s charity that seeks to keep young people safe from abuse
  • The Little Edi Foundation, which provides support and grants to struggling rural communities in Romania
  • Space for Giants, which helps protect and secure the future of elephants and their landscapes

Donations are facilitated through Coinbase Commerce, Coinbase’s service that allows merchants to accept multiple cryptocurrencies and maintain full control of their own digital currency. Coinbase Commerce launched in early 2018 and integrates directly into a merchant’s checkout screen. Since then, the company has amassed more than 2,000 merchants on the service.

“We firmly believe that by using blockchain technology we can help charities positively impact people all over the world. DustAid’s mission is to make giving a simple, easy and transparent part of our daily lives,” said Duncan Murray, Managing Director of DustAid. “We are really proud to be working with leading organizations like Coinbase and NSPCC to make this a reality and to help children be heard this Christmas.”

After its most recent funding round of $300 million, Coinbase’s total funding reached just under $550 million. Recently, the company launched its Coinbase Pro trading platform on mobile and added five new currencies to the Coinbase Card. Coinbase demoed InstantExchange at FinovateSpring 2014.

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: aixigo, CashSentinel, Chetu, Citi, Coinbase, Minna Technologies, MX, Neustar, PayPal, ThetaRay, ti&m, TransferWise, Worldline

On Finovate.com

  • ti&m and aixigo Partner to Digitize Wealth Management.
  • TransferWise Inks International Payments Deal with EQ Bank.
  • Coinbase’s New Partnership Helps Give Back with Crypto.

Around the web

  • ThetaRay Names Edward Sander as Chief Product Officer.
  • Frontier Communications deploys Neustar Certified Caller STIR/SHAKEN technology across its IP network to digitally certify phone calls.
  • Citi and PayPal expand partnership for institutional clients.
  • Worldline and CashSentinel partner to provide a payment solution to comply with Swiss and European online marketplaces.
  • Alaska USA Federal Credit Union selects MX to power mobile banking platform.
  • Minna Technologies deepens partnership with OP Financial Group.
  • Chetu continues European expansion, opens new UK office.

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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Updated: Finovate Alums Raise More Than Three Billion in 2019; $876 Million in Q4

Updated: Finovate Alums Raise More Than Three Billion in 2019; $876 Million in Q4
By David Penn Posted on
Categories: Funding, Fundings, Quarterly Funding

Updated 12/20/2019: Finovate alums raised more than $876 million in the fourth quarter of 2019. The amount takes the total raised by Finovate alums this year to more than three billion. It is both the second year in a row our alums have topped this milestone, and the biggest Q4 fundraising for Finovate alums to date.

Previous Annual Comparisons

The fourth quarter of 2019 is also the fourth Q4 in a row in which alum funding has climbed above the $500 million mark.

Previous Quarterly Comparisons

  • Q4 2018: More than $800 million raised by 19 alums
  • Q4 2017: More than $730 million raised by 23 alums
  • Q4 2016: More than $700 million raised by 26 alums
  • Q4 2015: More than $302 million raised by 28 alums

The top equity investment of the quarter was the $200 million raised by Ripple, followed by the $182 million raised by Zopa and the $102.5 million raised by BlueVine the previous month. Given the relatively small number of fundings this quarter, it is little surprise to find that our top ten equity investments for Q4 make up the vast majority of the reported spending total (note that the sums involved in two of our fourteen fourth quarter investments were undisclosed).

Top Equity Investments

  • Ripple: $200 million
  • Zopa: $182 million
  • BlueVine: $102.5 million
  • nCino: $80 million
  • Spreedly: $75 million
  • Passport: $65 million
  • SheerID: $64 million
  • Eigen Technologies: $37 million
  • Aerospike: $32 million
  • Kreditech: $24 million

Here is our detailed alum funding report for Q4 2019.

October 2019: More than $104 million raised by four alums

  • Kreditech: $24 million – post
  • nCino: $80 million – post
  • OurCrowd: undisclosed – post
  • Paper.id: undisclosed – post

November 2019: More than $311 raised by six alums

  • Aerospike: $32 million – post
  • BlueVine: $102.5 million – post
  • Eigen Technologies: $37 million – post
  • SheerID: $64 million – post
  • Spreedly: $75 million – post
  • Pinkaloo: $1.25 million – post

December 2019: More than $461 million raised by four alums

  • FintechOS: $14 million – post
  • Passport: $65 million – post
  • Ripple: $200 million – post
  • Zopa: $182 million – post

If you are a Finovate alum that raised money in the fourth quarter of 2019, and do not see your company listed, please drop us a note at [email protected]. We would love to share the good news! Funding received prior to becoming an alum not included.

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ti&m and aixigo Partner to Digitize Wealth Management

ti&m and aixigo Partner to Digitize Wealth Management
By Julie Muhn (@julieschicktanz) Posted on
Categories: aixigo, ti&m

Digitization and innovation company ti&m and wealth management technology provider aixigo have come together in a partnership this week that will help improve and digitize the wealth management experience.

The partnership will combine ti&m’s channel suite with aixigo’s Wealth Management & Investment Advisory platform’s digital suite. The press release highlighted how the flexibility of ti&m’s services are well-suited to enhance aixigo’s platform, noting that “any solution can be designed and integrated “out of the box” into core banking systems.”

“You meet customer expectations in digital competition and at the same time reduce costs per customer. This in turn means that customers are more willing to pay despite regulatory requirements and cost transparency,” said Christian Friedrich, CBO of aixigo. “And in the end, the goal is for the bank to become an integral part of daily digital habits. And it is precisely these added values that we want to bring out into the banking world together with ti&m.”

aixigo most recently demoed at FinovateFall 2018 in New York where it showcased Digital Portfolio Management Backoffice, a tool to manage portfolios flexibly and with a limited workforce. The Germany-based company raised an undisclosed amount of funds in a single private equity round earlier this year.

ti&m demoed its digital onboarding suite module at FinovateEurope 2017. Thomas Wüst is founder and CEO.

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Finovate Webinar: Accelerating the Speed to “Platform Ready” for Banks

Finovate Webinar: Accelerating the Speed to “Platform Ready” for Banks
By Charlie Burgess Posted on
Categories: Finovate Webinar, Webinars

In 2020, banks will spend about $2.3 billion on core modernization just to satisfy customers and keep fintechs at bay. In the age of apps and the platform economy, do you know how to ensure your bank is ready to compete?

Watch this on-demand webinar to explore:

  • The future of cloud-first strategies
  • The future of platform-as-a-service strategies
  • How banks can accomplish these and achieve transformation goals more cost effectively

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