Fintech Fundings: 24 Startups Land $102 Million in First Half August

By Jim Bruene Posted on
Categories: Funding

It’s mid-August. Who is even working now? Evidently, the folks cranking out new fintech (and their investors) are not letting up. So far this month, 24 startups have received a total of $102 million in new capital. 

Here are the newly funded, in order of deal size (fundings reported from Aug 1 through Aug 15, 2014). 

_______________________________

Pollen (no URL)
Working capital exchange
Latest round: $27 million
Total funding: $27 million
Tags: Working capital, treasury, marketplace, Kansas
Source: Crunchbase
SumUp (Finovate alum)
mPOS (point-of-sale) technology
Latest round: $13 million (per Crunchbase)
Total funding: $33 million
Tags: mobile, point of sale, payments, Ireland
Source: Finovate 
Online platform for private company financings
Latest round: $11 million
Total funding: $19.5 million
Tags: Investing, financing, New York
Source: Crunchbase
8 Securities
Social trading and wealth management platform
Latest round: $9 million
Total funding: $21.5 million
Tags: Investing, wealth management, Hong Kong
Source: Crunchbase
Online and mobile payments
Latest round: $8.5 million
Total funding: $8.5 million
Tags: Payments, mobile, Canada
Source: Crunchbase
NextCapital
Automated 401(k) management tools and portfolio analytics
Latest round: $6.1 million
Total funding: $6.1 million
Tags: Investing, 401(k), analytics, Chicago
Source: Crunchbase
Find the best real estate agent for your house
Latest round: $6 million
Total funding: $6 million
Tags: Real estate, mortgage, California
Source: Crunchbase
Helps underbanked access accrued wages through payroll cards
Latest round: $3.5 million
Total funding: $3.5 million
Tags: Underbanked, payday lending, California
Source: Crunchbase 
Mobile payment system for vending machines
Latest round: $2.8 million
Total funding: $3.2 million
Tags: Mobile payments, Oregon
Source: Crunchbase
Ecommerce technology enabling easy checkout and payment
Latest round: $2.7 million
Total funding: $2.7 million
Tags: Ecommerce, checkout, wallet, payments, Y Combinator, California
Source: Crunchbase
BlueVIne (debuting at FinovateFall 2014)
Working capital to small businesses
Latest round: $1.5 million
Total funding: $5.5 million
Tags: SMB, lending, credit, California
Source: Crunchbase
Portfolia
Equity crowdfunding platform
Latest round: $1.5 million
Total funding: $1.5 million
Tags: crowdfunding, California
Source: Crunchbase
Restaurant ordering and payment technology
Latest round: $1.5 million
Total funding: $1.5 million
Tags: Payments, order ahead, restaurants, Ukraine
Source: FT Partners from TechCrunch
Moneysoft 
Financial management software for small biz and individuals
Latest round: $1.4 million
Total funding: Unknown
Tags: PFM, accounting, payroll, SMB, Australia, UK
Source: Crunchbase 
Gift cards integrated with credit cards
Latest round: $1.4 million
Total funding: $1.4 million
Tags: Gift cards, prepaid cards, credit cards, California
Source: Crunchbase
Capital Float
Online platform providing small business financing in India
Latest round: $1 million
Total funding: $3 milllion
Tags: SMB, lending, financing, India
Source: Crunchbase
Real estate crowdfunding platform
Latest round: $1 million

Total funding: $34 million
Tags: Crowdfunding, real estate, investing, Washington D.C.
Source: Crunchbase
Lending technology for the SMB market
Latest round: $1 million
Total funding: $1 million
Tags: SMB, lending, B2Bank, Oregon
Source: Crunchbase
Geolocation technology for location-based services and payment solutions
Latest round: Undisclosed
Total funding: $920,000
Tags: Mobile payments, geolocation, Australia
Source: Crunchbase
Real estate discovery
Latest round: $550,000
Total funding: $550,000
Tags: Real estate, Philippines
Source: Crunchbase
Bitcoin peer-to-peer lending
Latest round: $270,000
Total funding: $270,000
Tags: P2P lending, Bitcoin, Germany
Source: Crunchbase
Coinmonk (Unocoin)
Bitcoin processor 
Latest round: $250,000
Total funding: Unknown
Tags: Bitcoin, India
Source: FT Partners from TechCrunch
Cash Sentinel
Facilitating payments for person-to-person vehicle sales

Latest round: $170,000
Total funding: $650,000
Tags: Escrow, vehicle lending, Switzerland
Source: Crunchbase
Payfont 
Identity theft protection
Latest round: $170,000
Total funding: Unknown
Tags: Security, identity, Scotland
Source: FT Partners from Finextra

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CEO Interview: Paul Doyle of VerifyValid

CEO Interview: Paul Doyle of VerifyValid
By David Penn Posted on
Categories: CEO Interview, VerifyValid

verifyvalid.jpg

A person could readily go broke betting against the demise of the check. While there are at any given moment plenty of startups and fintech veterans looking for new ways to avoid writing checks, the data suggests that people (and businesses) aren’t going to stop writing checks any time soon.

pauldoyle_verifyvalid

This is one of the reasons why we thought it would be a great idea to get in touch with Paul Doyle, CEO of VerifyValid. VerifyValid is a leader in the movement to bring checks into the 21st century.

With solutions like Mobile Checkbook, which allows consumers to issue, receive and deposit eChecks from their iPhone or iPad, VerifyValid has made key additions to its basic web-based check service – all geared toward providing the benefits of paper checks with the cost savings of using VerifyValid’s eChecks.

We were fortunate enough to catch a very busy Paul Doyle earlier this summer, and to ask him a few questions via email about his company, its partnership with Deluxe, and what we can expect from VerifyValid in the months to come.
Finovate: Your relationship with Deluxe is a big deal. Can you tell us more about how that partnership came about?
Paul Doyle: Deluxe’s name is synonymous with the check. Having the biggest name in checks decide to resell your solution to their more than 4.5 million small business customers and selling through their more than 5,400 financial institutions is a big deal.
We at VerifyValid wanted a partner that could give us reach and whose brand completely aligned with the type of payment we enable … the check! Deluxe was an obvious answer.
How and where did it all happen? We have been long-time participants in industry initiatives, such as standards development through X9 and ISO, as well as newer initiatives such as the Remittance Coalition. When one works among industry peers at this level, the industry becomes a fairly small and well-connected universe.
Finovate: What are some of the other companies and institutions that have deployed VerifyValid’s technology?
Doyle: VerifyValid has over 10,000 users currently and more are joining every single day. Our customers run the gambit from several large companies such as $10B multi-national corporations down to sole proprietors and not-for-profits. Many of our customers are private sector, but we are getting an increasing number of public sector entities, such as school districts and municipalities, beginning to use the service.
VerifyValid_homepage1
Finovate: How big is the B2B check business right now? Amid the overall declining use of checks, are we still seeing strong numbers on check issuance in the B2B space?
Doyle: There are approximately 5 billion B2B checks written and another 3 billion B2C checks written. This means businesses will write roughly 8 billion checks in 2014. Given the average value of a check is $1,420, this translates to more than $11 trillion dollars disbursed via checks by businesses. Given all forms of cards combined still only add up to about $4.5 trillion, we think this is still a very big and important part of our payments marketplace.
Finovate: What kind of cost savings are your customers realizing by using VerifyValid?
Doyle: Customers can pay for using VerifyValid’s service using money they already have in their existing budgets. For the same price as a 1st Class postage stamp, a user can complete the full process of creating, authorizing, and sending an eCheck.
As a result, all the other costs associated with the payments (i.e., purchasing of check stock, special printer cartridges, labor, etc.) go away. Our customers tell us they save $1 per transaction for each use of the service that would have formerly been a hard-copy check sent via the US Mail.
VerifyValid_homepage2
Finovate: Let’s talk about the technology, the Trusted Time Stamp that keeps the check delivery system secure. What kind of authentication is happening here that ensures that a check a bank receives is legitimate?
Doyle: This can get VERY geeky very fast, so I will try to keep it simple, and high-level.
We have built and brought to market the industry’s first Universal Positive Pay system, which gives a bank-of-first-deposit (BOFD) that ability to verify that a check which was issued through our service or registered with our service is a true, authentic item.
The beautiful thing about the check is that the real value of the check is in the data of the check, not the paper. There are 5 critical pieces of information: 1) the bank routing and transit number, 2) the account number, 3) the check number, 4) the amount of the check, 5) the “Pay to the order of” or payee. We give the ability to prove the truth of authentic transactions. This is a big deal. It is a game changer when it comes to the problem of check fraud because now, through VerifyValid, banks can trap inauthentic checks before they even enter the banking ecosystem.
VerifyValid takes the 5 critical values and creates a cryptographic times tap or Trusted Time Stamp (per ASC X9.95). The cryptographic timestamp allows for us to prove the authenticity of the transaction while still preserving the privacy of the underlying financial transaction.
Finovate: What percentage of VerifyValid customers are printing out the electronic checks? Do you expect this percentage to change significantly going forward? If so, what would be the catalyst for that change?
Doyle: The vast majority of our customers are printing out the checks they receive and depositing them traditionally. While we do see this changing in the future, the nice thing is that it does not have to change before more people can take advantage of the service. We hear from customers their delight at receiving their payments faster. This, in and of itself, is a big benefit. When we talk to users and the opportunity to deposit the check electronically, this takes things to a whole new level. It surprises and delights. Most people say things like, “Wow … now that is great … you’ve got it all. That is cool!”
VerifyValid_mobilecheckbook
Finovate: Where do VerifyValid’s revenues come from?
Doyle: VerifyValid’s revenues primarily come from the business check writer. A business pays to issue checks and the cost of using the service is essentially equal to the cost of the 1st class postage that they no longer need to use.
Finovate: So VerifyValid’s approach to electronic checks keeps banks in the picture?
Doyle: VerifyValid’s approach is built around banks and credit unions. The check is a payment instrument drawn against a DDA and is the essential domain of the banking industry. We believe this is the right way to build a modern, next-generation payments capability: by working with and through the banks and credit unions, and constructed on a rock-solid foundation of an existing, trusted and effective payment system. We allow banks and credit unions to use what they already have, what they already own. No new IT spend or investment required.
Finovate: The option to deposit checks directly into your checking account is a key feature. How many participating banks/FIs do you have? How quickly can you grow that number?
Doyle: My team is working out a plan to open up deposit-ability and Deposit Services for all banks by the end of the year. Stand by for more details on this in the 4th quarter.
Finovate: Let’s talk about the new app, Mobile Checkbook. How is it being talked about and received so far?
Doyle: Customers and pundits seem to love our mobile checkbook. As the market’s first real general purpose checkbook for the smartphone, it has a wide variety of uses. We are also being asked for a number of additional features. This shows us how much customers already like and use the app, and what more they want to be able to do. This also shows how relevant and useful checks still are.
Finovate: Brett King of Moven famously predicted that the last personal check will be written in the US in 2018. Interestingly, an initiative in the UK that set out to sunset paper checks around the same time as King’s prediction was met with a popular backlash. 
 
As an innovator in the space, what do you see as the future of the check?
Doyle: I believe Brett’s prediction is simply wrong and may have been meant to hype his company’s marketing message. The data in the US tells a different story, as do the direct experiences of the UK.
In the US, the actual number of checks written in 2012 as compared to nine years earlier in 2003 was 56% of the earlier volume. There were 21 billion checks written in 2012 as compared to 37.6 billion written in 2003. At this rate, if we look at 2018 (which would be a 6-year difference as compared to a 9-year difference in the prior number) one could predict that in 2018 there will still be approximately 12 billion traditional, paper checks written. Ironically, the number of consumer-to-consumer checks written has grown approximately 2% over the prior 6 years (2006-2012).
The experience of the UK is also worth noting. The UK Payments Council tried to mandate the end of checks by October 2018. Then, in July of 2012, this mandate was abandoned. The UK Payments Council was criticized for having attempted to implement a mandate without coming up with an acceptable alternative to the check.
According to mobilepaymentstoday:
“Checks still play an important part in the British payments landscape. Nearly 840 billion pounds ($1.4 trillion) worth of checks were processed in 2013 accounting for 10% of all payments made by individuals. In 2013, 23 million checks were sent as gifts because they are still the most trusted method of sending money through the post.”
We believe the check is as good a form of payment or better than anything else out there today. If one removes the paper or shifts where an dhow the item gets printed, we think the check will see a very long future. My prediction is that the VerifyValid eCheck will help checks continue to be used for at least the next decade or two. I believe we will see eCheck volumes reverse the trend in paper checks and will ultimately result in an increase in check usage.
Finovate: What can we expect to see from VerifyValid in the second half of 2014?
Doyle: The second half of 2014 is going to be exciting
  • Significant expansion of our mobile offering
  • Expansion of our offerings on the security and fraud prevention side of the business
  • Enhanced experience, functionality, and services for banks
And a few things we cannot talk about just yet!
Learn more about VerifyValid. Watch the company’s FinovateFall 2013 demo with Deluxe Corporation.

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CEO Interview: Paul Doyle of VerifyValid

CEO Interview: Paul Doyle of VerifyValid
By Julie Muhn (@julieschicktanz) Posted on
Categories: CEO Interview, VerifyValid

verifyvalid.jpg

A person could readily go broke betting against the demise of the check. While there are at any given moment plenty of startups and fintech veterans looking for new ways to avoid writing checks, the data suggests that people (and businesses) aren’t going to stop writing checks any time soon.

pauldoyle_verifyvalid

This is one of the reasons why we thought it would be a great idea to get in touch with Paul Doyle, CEO of VerifyValid. VerifyValid is a leader in the movement to bring checks into the 21st century. 

With solutions like Mobile Checkbook, which allows consumers to issue, receive and deposit eChecks from their iPhone or iPad, VerifyValid has made key additions to its basic web-based check service – all geared toward providing the benefits of paper checks with the cost savings of using VerifyValid’s eChecks.

We were fortunate enough to catch a very busy Paul Doyle earlier this summer, and to ask him a few questions via email about his company, its partnership with Deluxe, and what we can expect from VerifyValid in the months to come.

Finovate: Your relationship with Deluxe is a big deal. Can you tell us more about how that partnership came about?
Paul Doyle: Deluxe’s name is synonymous with the check. Having the biggest name in checks decide to resell your solution to their more than 4.5 million small business customers and selling through their more than 5,400 financial institutions is a big deal.
We at VerifyValid wanted a partner that could give us reach and whose brand completely aligned with the type of payment we enable … the check! Deluxe was an obvious answer.
How and where did it all happen? We have been long-time participants in industry initiatives, such as standards development through X9 and ISO, as well as newer initiatives such as the Remittance Coalition. When one works among industry peers at this level, the industry becomes a fairly small and well-connected universe.
Finovate: What are some of the other companies and institutions that have deployed VerifyValid’s technology?
Doyle: VerifyValid has over 10,000 users currently and more are joining every single day. Our customers run the gambit from several large companies such as $10B multi-national corporations down to sole proprietors and not-for-profits. Many of our customers are private sector, but we are getting an increasing number of public sector entities, such as school districts and municipalities, beginning to use the service.
VerifyValid_homepage1
Finovate: How big is the B2B check business right now? Amid the overall declining use of checks, are we still seeing strong numbers on check issuance in the B2B space?
Doyle: There are approximately 5 billion B2B checks written and another 3 billion B2C checks written. This means businesses will write roughly 8 billion checks in 2014. Given the average value of a check is $1,420, this translates to more than $11 trillion dollars disbursed via checks by businesses. Given all forms of cards combined still only add up to about $4.5 trillion, we think this is still a very big and important part of our payments marketplace.
Finovate: What kind of cost savings are your customers realizing by using VerifyValid?
Doyle: Customers can pay for using VerifyValid’s service using money they already have in their existing budgets. For the same price as a 1st Class postage stamp, a user can complete the full process of creating, authorizing, and sending an eCheck.
As a result, all the other costs associated with the payments (i.e., purchasing of check stock, special printer cartridges, labor, etc.) go away. Our customers tell us they save $1 per transaction for each use of the service that would have formerly been a hard-copy check sent via the US Mail.
VerifyValid_homepage2
Finovate: Let’s talk about the technology, the Trusted Time Stamp that keeps the check delivery system secure. What kind of authentication is happening here that ensures that a check a bank receives is legitimate?
Doyle: This can get VERY geeky very fast, so I will try to keep it simple, and high-level.
We have built and brought to market the industry’s first Universal Positive Pay system, which gives a bank-of-first-deposit (BOFD) that ability to verify that a check which was issued through our service or registered with our service is a true, authentic item. 
The beautiful thing about the check is that the real value of the check is in the data of the check, not the paper. There are 5 critical pieces of information: 1) the bank routing and transit number, 2) the account number, 3) the check number, 4) the amount of the check, 5) the “Pay to the order of” or payee. We give the ability to prove the truth of authentic transactions. This is a big deal. It is a game changer when it comes to the problem of check fraud because now, through VerifyValid, banks can trap inauthentic checks before they even enter the banking ecosystem.
VerifyValid takes the 5 critical values and creates a cryptographic times tap or Trusted Time Stamp (per ASC X9.95). The cryptographic timestamp allows for us to prove the authenticity of the transaction while still preserving the privacy of the underlying financial transaction.
Finovate: What percentage of VerifyValid customers are printing out the electronic checks? Do you expect this percentage to change significantly going forward? If so, what would be the catalyst for that change?
Doyle: The vast majority of our customers are printing out the checks they receive and depositing them traditionally. While we do see this changing in the future, the nice thing is that it does not have to change before more people can take advantage of the service. We hear from customers their delight at receiving their payments faster. This, in and of itself, is a big benefit. When we talk to users and the opportunity to deposit the check electronically, this takes things to a whole new level. It surprises and delights. Most people say things like, “Wow … now that is great … you’ve got it all. That is cool!”
Finovate: Where do VerifyValid’s revenues come from?
Doyle: VerifyValid’s revenues primarily come from the business check writer. A business pays to issue checks and the cost of using the service is essentially equal to the cost of the 1st class postage that they no longer need to use.
Finovate: So VerifyValid’s approach to electronic checks keeps banks in the picture?
Doyle: VerifyValid’s approach is built around banks and credit unions. The check is a payment instrument drawn against a DDA and is the essential domain of the banking industry. We believe this is the right way to build a modern, next-generation payments capability: by working with and through the banks and credit unions, and constructed on a rock-solid foundation of an existing, trusted and effective payment system. We allow banks and credit unions to use what they already have, what they already own. No new IT spend or investment required.
Finovate: The option to deposit checks directly into your checking account is a key feature. How many participating banks/FIs do you have? How quickly can you grow that number?
Doyle: My team is working out a plan to open up deposit-ability and Deposit Services for all banks by the end of the year. Stand by for more details on this in the 4th quarter.
Finovate: Let’s talk about the new app, Mobile Checkbook. How is it being talked about and received so far?
Doyle: Customers and pundits seem to love our mobile checkbook. As the market’s first real general purpose checkbook for the smartphone, it has a wide variety of uses. We are also being asked for a number of additional features. This shows us how much customers already like and use the app, and what more they want to be able to do. This also shows how relevant and useful checks still are.
Finovate: Brett King of Moven famously predicted that the last personal check will be written in the US in 2018. Interestingly, an initiative in the UK that set out to sunset paper checks around the same time as King’s prediction was met with a popular backlash. 

As an innovator in the space, what do you see as the future of the check?
Doyle: I believe Brett’s prediction is simply wrong and may have been meant to hype his company’s marketing message. The data in the US tells a different story, as do the direct experiences of the UK.
In the US, the actual number of checks written in 2012 as compared to nine years earlier in 2003 was 56% of the earlier volume. There were 21 billion checks written in 2012 as compared to 37.6 billion written in 2003. At this rate, if we look at 2018 (which would be a 6-year difference as compared to a 9-year difference in the prior number) one could predict that in 2018 there will still be approximately 12 billion traditional, paper checks written. Ironically, the number of consumer-to-consumer checks written has grown approximately 2% over the prior 6 years (2006-2012).
The experience of the UK is also worth noting. The UK Payments Council tried to mandate the end of checks by October 2018. Then, in July of 2012, this mandate was abandoned. The UK Payments Council was criticized for having attempted to implement a mandate without coming up with an acceptable alternative to the check.
According to mobilepaymentstoday:
“Checks still play an important part in the British payments landscape. Nearly 840 billion pounds ($1.4 trillion) worth of checks were processed in 2013 accounting for 10% of all payments made by individuals. In 2013, 23 million checks were sent as gifts because they are still the most trusted method of sending money through the post.”
We believe the check is as good a form of payment or better than anything else out there today. If one removes the paper or shifts where an dhow the item gets printed, we think the check will see a very long future. My prediction is that the VerifyValid eCheck will help checks continue to be used for at least the next decade or two. I believe we will see eCheck volumes reverse the trend in paper checks and will ultimately result in an increase in check usage.
Finovate: What can we expect to see from VerifyValid in the second half of 2014?
Doyle: The second half of 2014 is going to be exciting
  • Significant expansion of our mobile offering
  • Expansion of our offerings on the security and fraud prevention side of the business
  • Enhanced experience, functionality, and services for banks
And a few things we cannot talk about just yet!
Learn more about VerifyValid. Watch the company’s FinovateFall 2013 demo with Deluxe Corporation.

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Last Chance for FinovateFall 2014 Early-Bird Tickets!

By Eric Mattson Posted on
Categories: Uncategorized

btn3_ov.pngFinovateFall 2014 is just six weeks away and the buzz is building. After announcing the impressive roster of presenters a few weeks ago we’ve seen a substantial surge in ticket sales. Based on that surge, we’re now projecting a Finovate record audience of over 1,300 innovators, entrepreneurs, executives and investors!

If you’re interested in attending to see the future of fintech debut live on stage, the last chance to get your ticket at the early-bird price expires this Friday. Last year, we sold out so please don’t delay if you want to guarantee your ability to attend the event.

In case you’re curious, here is a small sample of the great organizations already committed to attend:

  • Adobe
  • American Express
  • Bain Capital
  • Bank of America
  • Bank of Ireland
  • Bank of Montreal
  • Barclays
  • BBVA Compass
  • C1 Bank
  • Capital One
  • CIBC
  • Citi
  • Citi Ventures
  • Discover
  • Equifax
  • Everbank
  • Experian
  • FIS Global
  • Forbes
  • Gartner
  • IBM
  • Jack Henry
  • Liberty Mutual
  • MassMutual
  • MasterCard
  • MACU
  • New York Life
  • Nordea
  • Oliver Wyman
  • Paypal
  • Primerica
  • PwC
  • QED Investors
  • RBC
  • Rockland Trust
  • Route 66 Ventures
  • S&P Capital IQ
  • SAP
  • Saxo Bank
  • Sberbank VC
  • Scottrade
  • Silicon Valley Bank
  • SixThirty
  • Societe Generale
  • Sony
  • Swedbank
  • Tangerine Bank
  • TD Ameritrade
  • The Huffington Post
  • The Principal
  • Umpqua Bank
  • USAA
  • Venrock
  • Wells Fargo
  • Yankee Group
  • Zions Bank
  • And many more!

We’ll see you in New York in September (or in San Francisco for FinDEVr)!

FinovateFall 2014 is sponsored by: The Bancorp, CapitalSource, Financial Technology Partners, Greater St. Louis Financial Forum, Hudson Cook LLP, Life.SREDA, UK Trade & Investment, Visa, Xignite & Zions Direct

FinovateFall 2014 is partners with: Aite, ABA, Bank Innovators Council, BankersHub, Bobsguide, California Bankers Association, Canada, Celent, Filene Research Institute, Hotwire PR, Javelin Strategy, Mercator, NYPAY, Payment Week, The Paypers, SME Finance Forum, & Visible Banking

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Alumni News– August 14, 2014

By David Penn Posted on
Categories: Dwolla, Expensify, Fiserv, PayPal, Venmo
  • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgFiserv and DBS win Asian Banker Technology Implementation award.
  • Expensify enables in-app report comments to make annotations directly on expense reports.
  • Merchants using WordPress now have access to two new payment gateways: Dwolla and PayPal Express Checkout.
  • Bank Innovation takes a look at how “Pay with Venmo” will impact mobile e-commerce.
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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Alumni News– August 14, 2014

By Julie Muhn (@julieschicktanz) Posted on
Categories: Dwolla, Expensify, Fiserv, PayPal, Venmo
  • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgFiserv and DBS win Asian Banker Technology Implementation award.
  • Expensify enables in-app report comments to make annotations directly on expense reports.
  • Merchants using WordPress now have access to two new payment gateways: Dwolla and PayPal Express Checkout.
  • Bank Innovation takes a look at how “Pay with Venmo” will impact mobile e-commerce.
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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Alumni News– August 13, 2014

By Julie Muhn (@julieschicktanz) Posted on
Categories: ACI Worldwide, Coinbase, Diebiold, FutureAdvisor, Holvi, Leaf, Lending Club, LendUp, Pandai, peerTransfer, planwise, ReadyForZero, Silanis Technology, SmartAsset, TrueLink Financial, TrustEgg, WePay, Xero, ZenPayroll
  • Finovate-F-Logo.jpgNetbanker features 2012- 2013 fintech graduates from Y Combinator:  TrueLink Financial, Coinbase, and LendUp.
  • Netbanker features 2009- 2012 fintech graduates from Y Combinator: ZenPayroll, SmartAsset, TrustEgg, FutureAdvisor, ReadyForZero, and WePay.
  • American Banker considers how Diebold is leading the way on the branch of the future.
  • peerTransfer surpasses 500 clients, while processing over $1 billion in international payments.
  • Heartland Payment Systems buys out remaining shareholders of tablet software and hardware startup, Leaf.
  • ACI Worldwide announces completion of ReD acquisition.
  • Lending Club mentioned in HBR Blog’s look at how new lending technology can help small businesses.
  • Silanis Technology partners with loan management software specialist Calyx Software. See Silanis at FinovateFall 2014 in September.
  • planwise teams up with Informa Research Services to launch plug-and-play search tool of real estate agents and brokerages.
  • NextAdvisor column in HuffPo highlights LendUp as alternative loan option for the underbanked.
  • Pandai announces joint cooperation with China and Hollard to leverage their experience in the loan insurance market.
  • Xero and Square partner to sync Square transactions and give a business a view of their finances. See Xero present at FinDEVr. 
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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The 40 Fintech Graduates from Y Combinator (YC)

By Jim Bruene Posted on
Categories: Startups

image By most measures, Y Combinator (YC) is far and away the most important incubator in the technology space. Graduating from there is like facing the job market with a resume boasting summer internships at Google, Facebook AND Goldman Sachs. You are almost guaranteed a multi-million funding.

Fintech (note 1) has been part of YC from the beginning. The first class (Summer 2005) included one fintech startup, TextPayMe, among the eight companies. TextPayMe was acquired shortly thereafter by Amazon for a rumored $3 million.

But as YC grew from 2005 to 2009, the number of fintech companies stayed at roughly 1 per year. During those five years, YC graduated 5 fintech companies out of a total of 139 (3.5%). Suddenly in 2010, the fintech number grew dramatically, average of more than 7 per year. During the past 4.5 years, there have been 35 fintech startups out of a total of 406 (8.6%) (see note 2). 

Table: YC Fintech Companies by Year

Class Total Companies # Fintech Companies % Fintech
2014 (half year) 56 5 9%
2013 83 9 9%
2012 117 8 7%
2011 89 7 8%
2010 61 6 10%
2009 39 1 3%
2008 43 1 2%
2007 32 2 6%
2006 17 0 0%
2005 8 1 13%
Total 545 40 7.4%

Source: Y-Combinator (yclist.com), Finovate analysis 
(see note 1 for Fintech definition)

_________________________________________

List of fintech YC alums by year
_________________________________________

2014 (Winter class only)

Abacus
abacus.com
Say goodbye to expense reports.

TradeBlock
http://tradeblock.com
Digital currency data and analysis. TradeBlock’s digital currency tools and research are trusted by hundreds of thousands of traders and enthusiasts across the globe.

Two Tap
http://twotap.com
Users can now order any product directly in your app with Two Tap.

Zidisha
http://www.zidisha.org
We are pioneering the first online microlending community to connect lenders and borrowers directly across international borders – overcoming previously insurmountable barriers of geography, wealth and circumstance.

Zinc
http://www.zincsave.com
Zinc is the best way to buy. Pay with with Dwolla or Bitcoin, and manage all your orders in one place.

2013

Buttercoin
http://buttercoin.com
Trade bitcoin with ease.

PayTango
http://www.paytango.com
PayTango links the cards in your wallet to your fingerprints.

RealCrowd
http://realcrowd.com
Featured investments available for funding.

SimplyInsured
http://www.simplyinsured.com
Simple health insurance for small businesses.

Standard Treasury
http://standardtreasury.com
APIs for commercial banks.

Swish
http://www.swish.com
Swish is a dynamic, specialized mobile payment company that has developed a ground breaking new card reader and application which provides a complete mobile point of sale solution to any size business.

True Link Financial
http://www.truelinkcard.com
We keep a watchful eye out for fraud and spending mishaps so you can spend your time doing what matters.

WeFunder
https://wefunder.com
We aim to give everyone – regardless of wealth – the opportunity to invest in startups.

Zenefits
http://www.zenefits.com
Zenefits runs your benefits, so you can run your business. Get affordable benefits for your company in minutes. Then set and forget them.

2012

Airbrite
http://airbritelabs.com
Exited
Airbrite is a cloud-enabled platform that powers mobile commerce We are the next generation of e-commerce. Our mobile-firs
t API powers modern shopping.

Coinbase
http://coinbase.com
Your Hosted Bitcoin Wallet. Coinbase is the easiest way to get started with Bitcoin.

Crowdtilt
http://www.crowdtilt.com
Crowdtilt allows users to pool funds for objectives in a simple, social, and frictionless way online.

Eligible
eligibleapi.com
Real Time Eligibility Checks for Health Insurance.

FundersClub
thefundersclub.com
FundersClub is a web service that gives investors unprecedented access to investment opportunities and the tools to review and invest online with ease and speed.

LendUp
lendup.com
LendUp is reinventing the payday lending industry

SmartAsset
http://www.smartasset.com
SmartAsset makes life’s biggest decisions easier by bringing full transparency to the financial decision making process.

ZenPayroll
http://zenpayroll.com
We are creating beautiful, modern payroll.

2011

DebtEye
http://www.debteye.com
We are an automated credit counseling solution to help customers get out of debt, a little like a “turbo tax” for those who need debt relief.

Giftrocket
http://www.giftrocket.com
GiftRocket sells a new type of gift card that works at any location.

GoCardless
https://gocardless.com
GoCardless is a UK-based service that allows smaller merchants to easily set up interbank transfers for customers.

Leaky
http://leaky.com
Leaky helps consumers make better decisions about insurance.

OrderAhead
http://orderaheadapp.com
OrderAhead is the easiest way to order from local merchants on your phone.

TrustEgg
http://trustegg.com
The simplest way to save for a child’s future.

SwipeGood
https://swipegood.com
SwipeGood allows users to enroll their credit or debit cards and automatically round up every purchase to the nearest dollar for charity.

2010

CardPool
http://www.cardpool.com
EXITED
Cardpool is a gift card exchange marketplace where anybody can buy, sell, or trade their new or pre-owned gift cards.

E la Carte
http://elacarte.com
E la Carte develops tablets for restaurant tables so guests can order, pay and play games from their seats

FutureAdvisor
https://www.futureadvisor.com
FutureAdvisor was founded in 2010 on the premise that investing for your future does not have to be difficult or expensive.

Indinero
http://indinero.com
Accounting, taxes & payroll. One solution. inDinero is your company’s accounting department.

ReadyForZero
https://www.readyforzero.com
ReadyForZero creates online financial software that helps people control and reduce debt.

Stripe
https://stripe.com
Stripe is a simple, developer-friendly way to accept payments online.

2009

WePay
https://www.wepay.com
WePay is an online payments platform for individuals, organizations, and businesses.

2008

Tipjoy
DEAD
Tipjoy was a simple, social payments engine that allows merchants to sell digital content and features, charities to raise money for causes, and individuals to give money to one another.

2007

Buxfer
http://www.buxfer.com
Buxfer is the next-generation personal finance solution, taking money management to the web.

SocialPicks
http://www.socialpicks.com
EXITED
SocialPicks provides individual investors with a trusted online investing community where they can invest smarter together.

2005

TextPayMe
http://www.textpayme.com
EXITED
TextPayMe was an SMS payment service that lets you send money to other people using cell phone text messaging.

—————————

Note:
1. We are using a broad definition of fintech including payments, insurance, investments, gift cards and even a few that are ecommerce focused such as E la Carte which is an order entry and payments play for restaurants.
2. Some YC companies are in stealth mode, so this public list is not 100% complete.

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Alumni News– August 12, 2014

By Julie Muhn (@julieschicktanz) Posted on
Categories: Dynamics, Jingit, LendUp, Luxoft, Mint.com, Oink, Simple, SocietyOne, Stocktwits, Thomson Reuters, TSYS, Wealthfront, wipro, Zopa
  • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgUK peer-to-peer leader Zopa tops $1 billion.
  • TSYS launches its Enterprise Tokenization solutions to help boost e-commerce security.
  • Thomson Reuters introduces Watchlist Pulse, a buy-side app for its Eikon platform.
  • Jingit’s Co-CEO and Co-Founder Joe Rogness explains to PYMNTS how they combine advertising and payment transactions.
  • StockTwits adds Former Yahoo! CEO and Robert Peck, SunTrust Tech Analyst, to Board of Directors.
  • Nanalyze features Dynamics ePlate technology.
  • Australia’s The Age considers how Society One plans to undercut banks’ personal loan rates by 5%.
  • Knox Payments considers how Mint, LendUp, and Simple are empowering our increasingly cashless society.
  • Oink brings its youth payment technology to online game company, Smilegate West.
  • San Francisco 49ers football team adds Wealthfront to list of benefits for employees.
  • Luxoft opens new delivery center in Guadalajara.
  • CEB Blogs interview Wipro’s Chief Learning Officer Abhijit Bhaduri.
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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FinDEVr 2014 Presenters Revealed!

By Eric Mattson Posted on
Categories: Uncategorized

FinDEVr Logo

FinDEVr San Francisco 2014 — the first event focused on fintech developers — is less than two months away, and we’re excited to announce our presenters!

These leading companies came from a competitive application process designed to find the best ideas and innovations for fintech developers. Not only did we have an unprecedented number of applications for a debut event, but we also saw an incredible range of cutting-edge solutions!

On Sept. 30 & Oct. 1 in San Francisco, they’ll showcase their latest tools, APIs, and platforms via fast-paced onstage presentations and in-depth workshops.

On the first day, our sponsoring presenters will reveal their latest & greatest fintech to a packed auditorium, then close out the day with happy hour and dedicated networking time. Here’s who you can expect to see on stage on Tuesday, Sept. 30:

  • Platinum Sponsors: Yodlee Interactive, TD Ameritrade, MasterCard & Visa
  • Gold Sponsors: PayPal & Forte Payment Systems
  • Silver Sponsors: Financial Apps, Avoka, Xero, InComm, EVO Snap, Xignite, Eshta & Intuit
  • Bronze Sponsors: CardFlight, BehavioSec, Mifos Initiative, Cloud Lending, ModoPayments, StockTwits, Bluefin Payment Systems, Finicity, OnDeck, Paradigm4, Tradier & PayNearMe

After whetting the audience’s appetite on day one, our sponsoring presenters will kick off day two with deep-dive workshops into their developer technology. These 50-minute workshops will run throughout the morning in six tracks and continue into the afternoon.

Alongside these workshops, another round of fast-paced presentations will also take place during the second half of Wednesday, Oct. 1 in a shrunken auditorium. Here is the initial list of the cutting-edge companies that have been selected to present on day two: BCL Technologies, Bionym, BlockChain.info, CopSonic, CrowdCurity, Entersekt, Kiind, Knox Payments, MASSPAY, Morpheus Aiolos, PayStand, Pich Technologies, Plaid, Prudena, Sekur.me, SimplyTapp, TagCash, Thinknum, Trulioo & The TxPUSH Initiative.

Even prior to today’s announcement, tickets have been selling strongly and we’re pleased to be projecting an audience of 400-500 for the event. The room is going to be packed with developers and technical execs from startups as well as financial institutions like CIBC, Experian, Wells Fargo, BlackRock,
USAA, Capital One, Target, and Western Union.

If you and/or your technical colleagues are interested in attending to learn about the latest innovations for fintech builders, tickets are on sale at the very early-bird discount of $200 off through Friday August 22nd.

We’ll see you there!

FinDEVr San Francisco 2014’s VC sponsor is: Life.SREDA

FinDEVr San Francisco 2014 is partners with: BankersHub, BayPay Forum, California Bankers Association, fin-tech.org, Hotwire, Mercator, PaymentWeek & The Paypers

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FinDEVr 2014 Presenters Revealed!

By Eric Mattson Posted on
Categories: Uncategorized

FinDEVr Logo

FinDEVr San Francisco 2014 — the first event focused on fintech developers — is less than two months away, and we’re excited to announce our presenters!

These leading companies came from a competitive application process designed to find the best ideas and innovations for fintech developers. Not only did we have an unprecedented number of applications for a debut event, but we also saw an incredible range of cutting-edge solutions!

On Sept. 30 & Oct. 1 in San Francisco, they’ll showcase their latest tools, APIs, and platforms via fast-paced onstage presentations and in-depth workshops.

On the first day, our sponsoring presenters will reveal their latest & greatest fintech to a packed auditorium, then close out the day with happy hour and dedicated networking time. Here’s who you can expect to see on stage on Tuesday, Sept. 30:

  • Platinum Sponsors: Yodlee Interactive, TD Ameritrade, MasterCard & Visa
  • Gold Sponsors: PayPal & Forte Payment Systems
  • Silver Sponsors: Financial Apps, Avoka, Xero, InComm, EVO Snap, Xignite, Eshta & Intuit
  • Bronze Sponsors: CardFlight, BehavioSec, Mifos Initiative, Cloud Lending, ModoPayments, StockTwits, Bluefin Payment Systems, Finicity, Expensify, OnDeck, Paradigm4, Tradier & PayNearMe

After whetting the audience’s appetite on day one, our sponsoring presenters will kick off day two with deep-dive workshops into their developer technology. These 50-minute workshops will run throughout the morning in six tracks and continue into the afternoon.

Alongside these workshops, another round of fast-paced presentations will also take place during the second half of Wednesday, Oct. 1 in a shrunken auditorium. Here is the initial list of the cutting-edge companies that have been selected to present on day two: BCL Technologies, Bionym, BlockChain.info, CopSonic, CrowdCurity, Entersekt, Kiind, Knox Payments, MASSPAY, Morpheus Aiolos, PayStand, Pich Technologies, Plaid, Prudena, Sekur.me, SimplyTapp, TagCash, Thinknum, Trulioo & The TxPUSH Initiative.

Even prior to today’s announcement, tickets have been selling strongly and we’re pleased to be projecting an audience of 400-500 for the event. The room is going to be packed with developers and technical execs from startups as well as financial institutions like CIBC, Experian, Wells Fargo, BlackRock,
USAA, Capital One, Target, and Western Union.

If you and/or your technical colleagues are interested in attending to learn about the latest innovations for fintech builders, tickets are on sale at the very early-bird discount of $200 off through Friday August 22nd.

We’ll see you there!

FinDEVr San Francisco 2014’s VC sponsor is: Life.SREDA

FinDEVr San Francisco 2014 is partners with: BankersHub, BayPay Forum, California Bankers Association, fin-tech.org, Hotwire, Mercator, PaymentWeek & The Paypers

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UK Peer-to-Peer Lender Zopa Tops $1 Billion

UK Peer-to-Peer Lender Zopa Tops $1 Billion
By Julie Muhn (@julieschicktanz) Posted on
Categories: Zopa

Thumbnail image for zopa.jpg

London-based peer-to-peer lender, Zopa announced that it has surpassed the billion-dollar mark (£0.59 billion) in total lending since launch.

“The peer-to-peer industry is growing faster than ever,” Giles Andrews, Zopa CEO and co-founder said. “And we’re looking forward to offering new products like ISAs in the near (future).”

It’s a testament to the growth Giles speaks of that a quarter of Zopa’s lending has come in 2014 alone. The company has enjoyed 92% year-on-year growth (basis July), and expects to return £10 million in interest to lenders this year.
Zopa_homepage_new
A few metrics on Zopa:
  • Year-to-date number of loans (2014): 104,000
  • Year-to-date funds loaned (2014): £148 million
  • More than 63,000 active borrowers 
  • More than 57,000 active lenders
  • Average Zopa lender: 47 years old
  • Average Zopa amount lent: £5,710
  • Average Zopa borrower: 40 years old
  • Average Zopa amount borrowed: £5,500
  • Total amount returned to lenders since launch: £37 million
  • Top three most popular loan uses cases:

    1. Car: 40%
    2. Home improvement: 20%
    3. Debt consolidation 20%

Founded in 2005, Zopa demoed its technology at FinovateSpring 2008. The company recently made headlines by winning the Most Trusted Loan Provider and Most Trusted Specialist honors at the 2014 MoneyWise Customer Service Awards in June.
Earlier this year, Zopa was named to the 2014 European FinTech 50, and won “Best Peer to Peer Lender” from Moneynet Personal Finance. The company raised £15 million in funding from Arrowgrass Capital in January, taking their total capital to more than $56 million.

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