Alumni News– December 22, 2014

  • Finovate-F-Logo.jpgDeutsche Bank launches FinanzPlaner powered by Strands PFM. Check out Strands’ newest tech at FinovateEurope.
  • Arroweye Solutions increases its payment card security.
  • SF Gate considers how Personal Capital brings a human touch to robo-advising.
  • Bluefin Payment Systems partners with 3Delta Systems to provide Bluefin’s Decryptx Point-to-Point Encryption Solution to 3Delta clients.
  • Financial Post takes a look at how innovations like SelfPay from Digital Retail Apps are helping small businesses.
  • Feedzai wins Silver Stevie Award in Most Innovative Company of the Year category in the 12th Annual American Business Awards.
  • FTSE Global Markets looks at how Kensho, Motif Investing, FutureAdvisor, and Wealthfront are leveraging big data and big computing.
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.

Qapital Raises $1.3 Million in Seed Round Led by Northzone

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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.

Alumni News– December 19, 2014

  • 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.

Fintech Fundings: 14 Companies Raise $1 Billion Week Ending Dec. 12

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Buoyed by the $865 million raised in Lending Club’s blockbuster IPO, fintech companies raised $1 billion last week. That was the largest amount since we began tracking in August. Granted, without the IPO, it was a more “normal” $135 million week.
Finovate alums accounted for all but $35 million of the total with Dynamics ($70 million), eToro ($27 million) and BehavioSec ($6 mil) joining Lending Club ($865).
Here are the deals from Dec. 6 to Dec 12: 

Lending Club
Consumers loan marketplace
Latest round: $865 million (IPO)
Total raised: $1.25 billion (includes $50 million debt)
Tags: Lending, P2P, person-to-person, loans, credit, investing, San Francisco, California, Finovate alum
Source: Finovate

Dynamics
Interactive plastic for credit & debit cards
Latest round: $70 million
Total raised: $110 million
Tags: Credit/debit cards, plastic, EMV, MasterCard (investor), Pittsburgh, Pennsylvania, Finovate alum
Source: Finovate

eToro
FX social trading platform
Latest round: $27 million
Total raised: $61 million
Tags: Investing, FX, mirror trading, Cyprus, Finovate alum
Source:Finovate

Insikt
Consumer loan marketplace
Latest round: $16 million
Total raised: $100+ million
Tags: Lending, direct, credit, underwriting, P2P, investing, San Francisco, California
Source: Finovate

BitReserve
Securing digital money
Latest round: $12.5 million
Total raised: $12.5+ million
Tags: Bitcoin, cryptocurrency security, San Francisco, California
Source: Crunchbase

BehavioSec
Biometric security 
Latest round: $6 million
Total raised: $8 million
Tags: Security, biometrics, Luea, Sweden, Finovate alum
Source: Finovate

Quoine
Japanese Bitcoin exchange
Latest round: $2 million
Total raised: $2 million
Tags: Bitcoin, cryptocurrency, exchange, Japan
Source: Crunchbase

WagePoint
Online payroll solutions
Latest round: $2 million
Total raised: $2 million
Tags: SMB, accounting, billing, Kitchner, Ontario, Canada
Source: Crunchbase

iFunding
Real estate investing marketplace 
Latest round: $1 million
Total raised: $1 million
Tags: Real estate, peer-to-peer lending, P2P, crowdfunding, investing, New York City
Source: Crunchbase

Financial Diligence Networks
Hedge fund compliance 
Latest round: $420,000
Total raised: $420,000
Tags: Investing, hedge funds, compliance, regulation, Boston, Massachusetts
Source: Crunchbase

Page365
Invoice & billing services
Latest round: $420,000
Total raised: $420,000
Tags: Bangkok, Thailand
Source: FT Partners

WealthMinder
Retail investment management 
Latest round: $250,000
Total raised: $250,000
Tags: Investing, advising, wealth management, Reston, Virginia
Source: Crunchbase

Avra
Bitcoin technologies & payments
Latest round: $150,000
Total raised: $150,000
Tags: Cryptocurrency, SMB, merchants, payments, Palo Alto, California
Source: Crunchbase

Tappr
Mobile payments & POS solutions
Latest round: Undisclosed
Total raised: Unknown
Tags: Payments, mobile, SMB, merchants, acquiring, Brisbane, Australia
Source: Crunchbase

Finovate Alums Fill Ranks of KPMG’s Fintech Innovators for 2014

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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.

Kashoo Unveils Quick Entry Accounting App for Android

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You asked for it. You got it. Kashoo Accounting-Quick Entry on Android.

Kashoo announced this week that its Quick Entry app that allows users to capture receipts and invoices while on the go is now available on the Android operating system. The app syncs in real-time to make the transition from mobile app to web app seamless.

The app was built in a “companion style.” This will make it easier for Kashoo to further develop the app based on feedback from customers.
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Kashoo has more than 150,000 registered users of its cloud accounting software in more than 180 countries. The company has won accolades from the British Columbia Technology Industry Association, PC Magazine, MacWorld Business, and CPA Practice Advisor. In March, the company earned a spot on the ICT 2014 Ready to Rocket List.
Learn more about Kashoo Accounting-Quick Entry on Android. 
Founded in March 2008 and based in Vancouver, British Columbia, Kashoo demoed its technology at FinovateFall 2010. Jim Secord is CEO.

Crealogix and Meniga Create Digital Bank and PFM Solution for BNP’s Consors Bank

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Cortal Consors demonstrated at FinovateEurope 2011, when it was an online brokerage and investment company under BNP Paribas. It has since become Consors Bank, a German-based subsidiary bank of BNP Paribas.

Launching a bank comes with a long to-do list– one thatMenigaLogo.jpgincludes providing financial planning tools for your customers– so Consors Bank has partnered with Meniga and Crealogix. Respectively, these fintech providers power spending and saving management tools, as well as a digital banking portal.

The combined solutions offer Consors Bank customers an engaging user experience that fits with the bank’s slogan, “mobile, just like you.”

Here’s a look at some of the aspects of Meniga’s PFM on Consors Bank’s web portal:

  • Monthly spending comparison:

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  • Spending category overview:

MenigaConsorsCategoryOverview.jpgIceland-based Meniga launched in 2009 and has since brought its white-label PFM platform to 25 banks across the globe. Meniga last demonstrated at FinovateEurope 2014 and will return to London next February for FinovateEurope 2015.

Crealogix appeared on stage at FinovateSpring 2014 in San Jose and will also demo its new technology at FinovateEurope 2015 in London.

Alumni News– December 18, 2014

  • 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.jpgFinovate Debuts: Knox Payments Leverages ACH to Reduce Payment Costs for Merchants.
  • Financial Times’ Ian McKenna takes a look at his “gadget of the fortnight”: True Potential Investor.
  • Wired.co.uk features digital fingerprinting technology from Trustev.
  • GoBank users now able to activate cards through banking app without starter kit.
  • FreeAgent expands Self Assessment filing to ease pain for SMEs.
  • Google Cloud Platform releasing SDK in Java for using Cloud Dataflow under an open-source license.
  • American Banker names online marketplace lending, such as Lending Club and Prosper, the innovation of the year.
  • InComm partners with Edenred UK, an employee benefits and solutions provider.
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.

Finovate Debuts: Knox Payments Leverages ACH to Reduce Payment Costs for Merchants

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The Finovate Debuts series introduces new Finovate alums. At FinovateFall 2014, Knox Payments demoed its platform that leverages ACH to provide cheaper, more efficient payment options for merchants.

Knox Payments reduces interchange fees and cart abandonment with its cost-effective and fast checkout system.

The Stats
    • Founded in February 2014
    • Headquartered in Richmond, Virginia
    • Raised more than $1.5 million in funding
    • 25 employees
    • 70 customers
    • Thomas Eide (CEO) and Thomas Nicholas (President) are co-founders
Getting to Know Knox
Sometimes innovation is a matter of using old tools in new ways. That may be one way to think about the innovation Knox has created.
“We are reducing interchange costs by doing bank payments via ACH,” explained Thomas Nicholas during a pre-FinovateFall 2014 conversation. Running payments through ACH has been possible conceptually, he adds. But until Knox’s technology, the process was too cumbersome.
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“We get rid of barriers,” Nicholas added. “Routing numbers, account numbers, verifications, and the wait time. We eliminate all that.” The goal is to give merchants a payment system that is fast and efficient, lowers costs, and maintains a high level of security. All for 18 cents for payments more than $2. Transactions for less than $2 are free.
One interesting aspect of Knox is that while the process cuts the card companies out of the picture, the use of ACH means that banks are front and center. Nicholas explained that one big issue is that consumers make credit card payments, but banks never have access to key e-commerce data embedded in those transactions. Knox changes that, by “bringing transactions back to the banks.” They use the example of the technology deployed as part of a banking app and helping to increase customer engagement and loyalty as the app becomes a shopping tool. “Banks are going to be powering payments going forward,” Nicholas said.
The Technology
Onboarding with Knox is a four-step process. Find and choose your bank from the list of currently supported FIs (23 banks supported as of this writing). Then login using the same login credentials you use with your online bank account and choose the specific account, checking or savings, to be used and the merchant is ready to begin processing payments
“Usually signing up to accept payments is a really painful process,” Nicholas said from the Finovate stage this fall. But with Knox we do it in a couple of minutes with just a couple of steps.”
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Knox can also be used to quickly and cheaply fund accounts and digital wallets. The company’s partnership with Forex.com (more on that below) will make it much easier for traders and investors on the foreign exchange trading platform add funds to their trading accounts. 
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Where Knox’s technology shines is the way it negotiates the typical three to four-day payment lag in ACH transactions. Knox conducts a real-time balance check to assure funds are present, which allows it to provide next-day funding to the payee. “Knox is the only alternative to the credit card network that will actually underwrite transactions instantly for half a percent and 18 cents,” Nicholas said.
The Future
There are 23 banks integrated right now – all US-based. But the company expects that number to grow into the hundreds soon. The technology itself is “very portable.” Compliance and regulation remain the main barriers to speedier expansion. 
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(Above: Knox Payments President and Co-Founder, Thomas Nicholas demoing at FinovateFall 2014)
Many of the company’s earliest successes have been with currency-related companies – from forex brokerages to digital currency platforms. Knox announced a partnership to power the funding of trading accounts at forex broker Forex.com. With funding by credit card soon to be banned on forex platforms, and other funding options too slow and/or expensive, this service will be a time and money savings for FX traders.
Knox is also working with digital currencies. Many payment processors can’t risk-rate digital currencies, Nicholas said. But Knox’s platform is “robust enough” to do the risk rating. To this end, Knox announced in October that it had formed a partnership with payment processor, Vogogo, that will make it easier its U.S. digital currency clients to accept payments from U.S. bank accounts. And a December agreement with ChangeTip will enable instant Bitcoin payments via ACH.
As Knox sees it, businesses love credit cards because people know how to use them and the funds are guaranteed. Businesses love ACH because it’s cheap. Knox takes what merchants love about cards and what they love about ACH and, with some of their own innovations added in, have created a compelling alternative, especially for digital currencies working their way into the mainstream. 

Watch Knox Payments demo its platform at FinovateFall 2014.

OnDeck Goes Public, Raises $200 Million in Initial Public Offering

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Small business lending innovator OnDeck became a publicly traded company today, raising $200 million in an offering that valued the company at $1.3 billion.

And like Lending Club, which launched its IPO last week, OnDeck saw its stock price above its anticipated range. Initially set for $16-18, shares of ONDK opened Wednesday morning on the New York Stock Exchange at $26.50 and traded as high as $28 by midday.

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OnDeck was founded in 2006 and specializes in providing loans to small businesses that are typically underserved by traditional lenders. What makes OnDeck unique is twofold: first, the company believes its proprietary methods do a better and faster job of identifying true creditworthiness than methods used historically by financial institutions. Second, OnDeck’s lending capital comes from lines of credit secured from banks, as well as securization of its loan book.
We shared some interesting metrics on OnDeck in November when the company announced its IPO plans. Additionally, OnDeck’s loan originations have grown at a compound AGR of 127% from 2011 to 2013, and the company has experienced year-over-year growth of 171% in the first nine months of 2014. OnDeck has originated more than $1.7 billion in loans since inception in 2007.
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Coming on the heels of the Lending Club IPO, OnDeck public debut is putting a spotlight on the variety of fintech innovation being brought to market. And while increased scrutiny from investors and analysts will present challenges, it will also provide an opportunity to stimulate greater attention, interest and investment in the industry.
Interviewed Wednesday morning on CNBC’s “Squawk on the Street”, OnDeck CEO Noah Breslow said, “It’s a signature moment for financial technology. Public market investors have had no real way to invest in the disruption that’s happening in banking. We think that both the Lending Club IPO and the OnDeck IPO represent in consumer and small business the two leaders in those respective markets.”
Lead underwriters of the offering were Bank of America, Deutsche Bank, Jeffries, JP Morgan Chase, Merrill Lynch, and Morgan Stanley. Based in New York, OnDeck was last on the Finovate stage in 2012 for FinovateSpring where it demoed its OnDeck Connect technology. This fall, the company participated in the inaugural FinDEVr conference in San Francisco, presenting its lending APIs.

Alumni News– December 17, 2014

  • 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.jpgThe Jerusalem Post profiles Israeli startup, TipRanks.
  • CashStar Market Solution is now powering 150 promotions during this year’s winter holiday season.
  • Enterprising Investor highlights Betterment, LearnVest, Motif Investing, Venmo, and Wealthfront in its column on Millennials and money.
  • TechZone 360 discusses CrowdFlower in a review of “What’s Hot and What’s Not on Data Science for 2015.”
  • Yahoo! Finance features an interview with Rippleshot co-founder and CPO Yueyu Fu.
  • WingCash unveils Brand Cash, a digital currency that replaces merchant-specific gift and loyalty cards.
  • Financial Times profiles Betterment CEO and co-founder, Jon Stein.
  • After Manilla’s demise, Mint launches bill pay and bill management platform.
  • Time, Inc partners with Coinbase to accept bitcoin for subscriptions to Fortune, Health, This Old House and Travel + Leisure.
  • Tradeshift to waive 30% revenue share from organizations that build apps to support the circular economy http://bit.ly/13cY6S6
  • Wealth Management looks at the human advisors behind Personal Capital and SigFig.
  • Money Talks News lists alternative lending sites to consider: Prosper, Lending Club, and Kabbage.
  • ID Analytics names Timothy Laughlin as new CFO.
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.

Finovate Debuts: EyeLock’s Myris Device Authenticates Using Iris Identification

The Finovate Debuts series introduces new Finovate alums. Today’s feature is EyeLock, which demonstrated its myris eye scanning device at FinovateFall 2014.

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EyeLock links a user’s password to their iris template, enabling them to log into their computer, websites, and applications by scanning their iris on the myris device.

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Stats

    • Headquartered in New York, NY
    • Founded 2006
    • Device cost: $280
    • Chance of a false iris match is 1 in 1.5 million

The device
myris is an iris-scanning device that plugs into the USB port on a user’s computer and authenticates them by taking a video of their iris. EyeLock associates the iris template with a long and complex password.

Upon first setting up their account on the device, users generate their unique iris ID, then select operating systems, websites, and applications they’d like to log into using myris. From then on, all they need to do to log into those sites is glance at the myris device.

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EyeLock sells myris through different channels:

    • Directly to consumers (see Best Buy screenshot below)
    • To businesses for commercial use

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Use cases
With the myris application on their computer, combined with the hand-held device, users manage login permissions for myris, as well as multiple users for a single account.

  • Sites, applications, and operating system

With the Sites tab, users scan their iris to log in automatically to websites such as Facebook and PayPal. The Applications tab enables users to securely log into applications such as Skype and Spotify, while the Operating System tab lets users opt to log into their computer using myris. EyeLock supports Windows, Linux, and Mac operating systems.

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  • Startup and settings

With the Startup tab, the user selects which sites and applications to launch automatically upon turning on their computer. This Autolaunch feature lets users select any number of sites they would like to open simultaneously after authenticating themselves with myris.

The Settings tab is exactly what it sounds like. Users download system updates, add and manage multiple user permissions for shared accounts, and view their account login history.

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Benefits
Since the user’s iris is always with them and is exclusively theirs, myris eliminates the risk associated with lost, stolen or shared login credentials and ID cards. Additionally, scanning an iris is faster than typing in a username and password.

In addition to the digital realm, eyeLock has products that authenticate users on a commercial level to allow access into physical barriers, such as restricted buildings or conference rooms. Check out Eyeswipe-Nano, Eyeswipe-Nano TS, nano NXT and HBOX

EyeLock demonstrated its myris authentication device at FinovateFall 2014.