Finovate Alumni News

On Finovate.com

  • “Socure Secures $2.5 Million in Debt Financing”
  • “Five Finovate Alums Named 2015 Technology Pioneers by World Economic Forum”

Around the web

  • Let’s Talk Payments interviews Stephane Dubois, Xignite CEO and founder. See Xignite at FinDEVr 2015 in San Francisco in October.
  • Flint Mobile upgrades its iOS mobile app to improve compatibility with Apple Wallet.
  • Cloud OS Corezoid is now available via the Amazon Marketplace (in Russian).
  • Forbes notes MaxMyInterest, Dragon Wealth, and EverSafe in a feature on the global growth of fintech accelerators.
  • Market Visual integrates with the Tradier API to enable investors to manage stock portfolios and trade on a single platform.
  • Q2 Holdings acquires Centrix Solutions for $20 million.
  • Ayasdi named a 2015 Technology Pioneer by World Economic Forum.
  • Delaware Business Times profiles Global Debt Registry.
  • RateFuel asks if Qapital represents the “future of banking.”
  • PayNearMe partners with The California Department of Child Support Services to offer a new payment option for cash-paying customers.
  • FutureAdvisor launches FutureGift to help friends and family easily contribute to kids’ college funds.

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 Alumni News

On Finovate.com

  • “Expensify Tallies Up $17.5 Million in Funding to Support its New Fintech Investment Fund”

Around the web

  • AcceptEmail partners with PayWithMyBank to make bill pay convenient and less costly.
  • SocietyOne hires former Lending Club executive as its new chief marketing officer.
  • Spend Matters highlights Tradeshift as a company to watch in 2015.
  • Pindrop Security releases new version of fraud detection system to more effectively identify and predict fraudulent activity.
  • Yodlee hosts webinar on how to build financial apps to meet rapidly evolving customer expectations.
  • BehavioSec mentioned as one “wild invention of the future” that the Pentagon is behind.
  • Tradier announces 75+ investor platforms and advisors integrating with its API.
  • Algomi adds 100th buy-side firm to its Honeycomb Network.
  • American Banker: FIS in talks to acquire SunGard.
  • PYMNTS.com interviews Sarah Hartman, senior director of consumer payment solutions at TSYS.
  • India West profiles Ayasdi founder and CEO, Gurjeet Singh.
  • Benzinga’s list of 10 PFM apps for teens and young adults features Toshl Finance, Manilla, BillGuard, Mint, and Smarty Pig.
  • Acculynk teams up with TouchPay, combining online billpay with self-service payment kiosks.
  • OnDeck rolls out mobile app for account management on the go. Come see OnDeck at FinDEVr in San Francisco, 6/7 October 2015.
  • Let’s Talk Payments interviews PayStand CEO Jeremy Almond.

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.

$680 Million Raised by 29 Alums in Q1 2015

cartoonmoneystackThe biggest surprise in our look at first-quarter funding is that the $677 million amassed by 29 Finovate alums was more than 20% of the $3.2 billion invested in the entire worldwide fintech sector.

The $677 million raised was $85 million (+14%) above the same quarter a year ago, and more than triple the first quarter of 2013.

Q1 2015 was also $133 million above the $544 million mark set in the fourth quarter of 2014.

It will be worth watching to see if this record-setting first quarter for Finovate alum fundraising will be a sign of more great things to come for capital-raising in 2015.

Top 10 Overall Investments

  1. Xero: $111 million in February
  2. Coinbase: $75 million in January
  3. Betterment: $60 million in February
  4. TransferWise: $58 million in January
  5. App Annie: $55 million in January
  6. Ayasdi: $55 million in March
  7. Motif Investing: $40 million in January
  8. Ripple Labs: $30 million in January
  9. Bill.com: $50 million in February
  10. Pindrop Security: $35 in February

Previous Quarterly Comparisons

  • Q1 2015: More than $676 million raised by 29 alums
  • Q4 2014: More than $544 million raised by 25 alums
  • Q1 2014: More than $600 million raised by 8 alums
  • Q1 2013: More than $155 million raised by 14 alums

January: More than $275 million raised by 14 alums

February: More than $264 million raised by 8 alums

March: More than $136 million raised by 7 alums

If you are an alum that raised money in the first quarter of 2015, and do not see your company listed, please drop us a note at research@finovate.com. We would love to share the good news! Funding received prior to becoming an alum not included.

Finovate Alumni News

Around the web

  • Market Prophit unveils its social market sentiment smart beta index.
  • Silicon India takes a look at Ayasdi’s plans to use the capital raised in its latest $55 million funding.
  • Financial Advisor IQ highlights Betterment and Motif Investing in its discussion of millennials and machines.
  • QuantConnect is now integrated with Interactive Brokers.
  • ProfitStars celebrates surpassing 600 FIs using its Remote Deposit Anywhere technology.
  • FIS wins Best Core Banking, Best Outsourcing Project honors at Asian Banker Technology Implementation Awards.
  • TechCrunch: Yodlee’s Joe Polverari writes about LearnVest and its acquisition by Northwestern Mutual.
  • ABC’s 7 On Your Side quotes IDTheft 911 founder Adam Levin on protecting your driver’s license from identity theft.
  • Connect Financial Software Solutions to provide real-time, P2P payments courtesy of new partnership with Acculynk.
  • Cortera announces new releases of eCredit Software.
  • Zoho partners with Forte Payment Systems to offer electronic payments directly with Zoho Finance apps.
  • Dexterity Ventures’ Place2Give releases GIVE_api v. 2.0.
  • Pymnts interviews SimplyTapp president and co-founder Ted Fifelski.
  • PayPal to be publicly traded on NASDAQ in Q2 2015 with its original stock ticker symbol PYPL.

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 Alumni News

On Finovate.com

  • Get Your Kicks: DriveWealth Earns Investment from Route 66 Ventures. See DriveWealth make its Finovate debut at FinovateSpring 2015 next week in San Jose.

Around the web

  • India’s Karnataka Bank deploys “e-lobby” services from FIS. See FIS in action at FinovateSpring 2015.
  • Ayasdi earns spot on Computer Reseller News’ Big Data 100 for the third year in a row.
  • WhatTheyThink interviews Didier Rouillard, VP of service provider business for GMC Software Technologies.
  • Ventana Research highlights Nomis Solutions in report on price- and revenue-optimization software.
  • KUBRA to integrate InComm’s Cashtie API into its services.
  • Boku launches carrier billing technology on Google Play in Saudi Arabia.
  • Re/code: FutureAdvisor Launches Free Service to Manage College Investments
  • Killer Startups profiles oneID and its “internet without passwords.”

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.

Ayasdi Raises $55 Million in Series C Funding

Ayasdi_homepage_full

Machine learning algorithm specialist Ayasdi has raised $55 million in a new investment that doubles the company’s total capital.

The Series C round was led by Kleiner Perkins Caufield & Byers (KPCB), and featured participation from existing investors Citi Ventures, FLOODGATE, Institutional Venture Partners (IVP), and Khosla Ventures. New investors Centerview Capital Technology and Draper Nexus were also part of the investment, which takes Ayasdi’s total funding to more than $100 million.

Ted Schlein of KPCB praised Ayasdi’s ability to make complex data analysis easier for large institutions and organizations. He cited the technology’s combination of “machine learning algorithms with topological mathematics and artificial intelligence” as a “breakthrough innovation that will drive the next information and productivity wave in the coming decade.”

Ayasdi_FF2014_stage2

Health care systems have been among the most eager adopters of the Ayasdi’s technology. But the company is working with three of the five largest financial institutions in the world to help them make smarter lending decisions, improve risk and compliance modeling, protect against fraud, and better serve private banking clients. Deborah Hopkins, Chief Innovation Officer of Citi and CEO of Citi Ventures said the technology provided insights that “enable Citi to tailor services to specific client needs, operate more efficiently, and mitigate risk.”

Learn more about Ayasdi from our November feature. The company’s CEO Gurjeet Singh has been profiled frequently in major media from Forbes to TechCrunch, as Ayasdi has forged partnerships with companies like Teradata and Cloudera to make its technology even more valuable to enterprise-level clients. In February, the company was named one of the 10 most innovative companies in Big Data by Fast Company for a second year in a row.

Founded in 2008 and headquartered in Menlo Park, California, Ayasdi made its Finovate Debut in New York at FinovateFall 2014. See video of the company’s live demonstration of Ayasdi Finance.

Finovate Alumni News

On Finovate.com:

  • Kabbage Expands to Australia in New, White-Label Collaboration with Kikka Capital.
  • Advanced Merchant Payments Pulls in Undisclosed Amount of Funding.
  • Ayasdi Raises $55 Million in Series C Funding.

Around the Web:

  • Yodlee joins FinTech Sandbox as data partner.
  • Acculynk unveils new mobile wallet authentication service for issuers and providers.
  • Innosect (formerly Innovation Café) acquires Clientific.
  • 5+ Community FIs to launch Apple Watch offering powered by Malauzai. Come see its live demo at FinovateSpring in San Jose May 12-13.
  • CardFlight Announces Availability of EMV-Ready Chip Card Readers for SwipeSimple Mobile Point-of-Sale Solution.
  • Rajesh Bhat, Co-founder at Roostify, shares what he learned from Yodlee Interactive Incubator Boot Camp 1.
  • Google Cloud Platform introduces Google Cloud Launcher, where you can launch open source packages configured by Bitnami or Google Click to Deploy.
  • HelloWallet launches Emergency Savings Calculator.
  • Orchard Platform and Kabbage Announce Partnership to Provide Investors’ Access to Karrot Consumer Loans.
  • PayStand mobile iOS app now available to allow credit card, check and Bitcoin payments.

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.

 

Alumni News, February 13, 2015

  • 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.jpgDigital Insight to offer its customers EyePrint ID, courtesy of new agreement with EyeVerify.
  • Global Debt Registry unveils new asset classes, new resources, and new UI in brand refresh.
  • Azimo extends its money-transfer service to Thailand.
  • FinovateEurope 2015 Best of Show Winners announced.
  • Fast Company features Ayasdi in its list of the Top 10 Most Innovative Companies of 2015 in Big Data.
  • 22 Finovate alums nominated for 2015 Pymnts innovator awards. Cast your vote here.
  • Lincoln Savings Bank hires Insuritas to launch insurance agency for its customers.
  • FreeAgent partners with Appointedd to simplify small business bookings.
  • Bank Innovation takes a look at the widespread use of Xignite APIs among fintech startups.
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.

Alumni News– January 29, 2015

  • 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.jpgTinkoff Bank to deploy fraud prevention solution from Iris Analytics.
  • EagleBank implements EnAct client management and sales software from Fiserv.
  • KDnuggets interviews Anthony Bak, principal data scientist for Ayasdi.
  • Red Zebra Analytics brings its card-linked offers service to Germany.
  • Ripple Labs raises $30 million in Series A round.
  • CNBC Tech Check interviews Tradeshift CEO Christian Lanng.
  • Computer Business Review features Venmo and Flint Mobile in its list of “5 mobile apps to turn your wallet digital.
  • Datamonitor analyst describes why he’s looking forward to watching Advice Games’ demo at FinovateEurope 2015.
  • Simple now works on BillGuard.
  • Google Cloud Platform now available to VMware customers.
  • TechCrunch explores Coinbase’s recently launched U.S. exchange.
  • Cachet Financial Solutions integrates with Apple Pay.
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.

Alumni News– January 8, 2015

  • 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.jpgForbes series on thought leaders in business and technology features Ayasdi CEO and co-founder, Gurjeet Singh.
  • defi SOLUTIONS announces its Loan Origination System is now integrated with Dealertrack’s eDocs.
  • PrivatBank upgrades its Privat24 business account management mobile app.
  • Service Credit Union hires Insuritas to open and manage turnkey insurance solution.
  • Sonavation unveils IDKey M-Series fingerprint scanner for storing passwords, data.
  • WSJ blog post on banks and mobile payments features quote from Paul Thomalla, SVP and managing director EMA at ACI Worldwide.
  • Loop announces two new OEM partners, XPAL Power and Trident Case.
  • All Day features Dynamics interactive payment cards in its review of the “coolest gadgets from CES 2015.”
  • Radius reflects on its collaboration with big data analytics company, BIME.
  • Dealbook looks at the cooperative side of fintech innovation with Behalf, Nymi, and Dynamics.
  • CSI globalVCard announces availability of the Android version of its mobile payment.
  • EZBOB boosts its maximum loan size from £50,000 to £120,000, and extends its maximum term length from 12 to 15 months.
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.

Alumni News– January 5, 2015

  • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgCredit Karma to offer Equifax credit scores and reports.
  • American Banker profiles Global Debt Registry.
  • Silicon Valley Tech News interviews Ayasdi CEO Gurjeet Singh.
  • Central Florida Future features Toshl Finance in its look at smartphone apps.
  • Burning Man using Coinbase to accept Bitcoin donations.
  • In case you missed it while you were in Holiday Hibernation: A look back at the 28 Finovate and FinDEVr Best of Show winners of 2014.
  • NICE Systems releases voice biometrics-based Real-Time Fraud Prevention solution.
  • Airbnb, Boxed, Munchery and YPlan enable Braintree’s One Touch buying experience.
  • Authentity blog names ThreatMetrix and Entersekt as authentication companies to watch in 2015.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Debuts: Ayasdi’s Topological Analysis Makes Sense of Complex Data

AyasdiLogo_FF2014.jpg

The Finovate Debuts series introduces new Finovate alums. At FinovateFall 2014, Ayasdi demonstrated its Ayasdi Finance technology that helps financial institutions detect fraud, better manage risk, analyze market conditions, and understand their customers.

Ayasdi

Develops technologies based on topological data analysis that helps institutions in fields ranging from finance to healthcare to energy better understand and benefit from complex data sets.
The Stats
    • Founded in June 2008
    • Headquartered in Menlo Park, CA
    • Raised more than $50 million 
    • Customers include Citigroup, General Electric, and the University of California San Francisco (UCSF)
    • Co-Founders Gurjeet Singh, CEO, and Gunnar Carlsson, President
The Story
Some great technologies are born in basements and garages. Others have a far more – sophisticated – pedigree.
“We were called ‘one of the 10 most important advancements to come out of DARPA'” Michael Woods, Principal Data Strategiest for Ayasdi, told me in a conversation about how the company was born out of a research project at the Defense Advanced Research Projects Agency. The research itself, which involved finding better and more efficient ways to analyze and understand complex data, began in various forms in 2000.
Ayasdi_homepage.jpg
A large part of the problem is that technology was allowing greater numbers of people to generate data. But these same people were often ill-equipped to actually read and understand it. As Woods pointed out from the Finovate stage, this problem is only likely to get worse as more advanced technologies generate ever more advanced (read: complex) data to be deciphered.
Of the various projects underway at DARPA to help solve this problem, one involved a field of analysis called topological analysis. Topological analysis, put simply, is the study of ways to make structure out of unstructured data. This then makes the data machine-readable and able to drive algorithms and other processes.
Those in the topological group, including Ayasdi’s eventual co-founders Gunnar Carlsson and Gurjeet Singh, were able to show through a variety of published papers, that their technology worked and that topological analysis could generate meaningful insights from unstructured data. The point made, the researchers felt like the best option was to commercialize the technology.  
The fledgling Ayasdi started out on its own in 2008, with the help of a DARPA small business research grant. By 2010 the company had developed a prototype and after securing seed funding. Ayasdi began selling the technology in 2012.
Ayasdi_MichaelWoodsstage.jpg
(Above: Michael Woods, Principal Data Scientist, Ayasdi)
And while reactions to the technology varied initially from resistance to “where have you been all my life?”, the company has seen a growing acceptance and with a customer base that includes  three of the five largest energy companies, seven of the ten largest pharmaceutical companies, a number of major hospital systems, and a number of the largest and most sophisticated financial institutions.
“Businesses face a profound challenge today. Data generation is rapidly outpacing data interpretation, which is to say that your businesses are capturing more data than they can effectively understand and act upon,” explained Woods. “Ayasdi is well positioned to solve this challenge.”
The Technology
Ayasdi reveals patterns in data, which then allows observers to look for not only key trends, but critical outliers, as well. These outliers or subpopulations often contain precisely the kind of information that other data analysis methods miss. During its FinovateFall 2014 demonstration, for example, Woods and his colleague Max Song showed how the technology uncovered potential fraud among a sub-population of consumers with otherwise sterling credit ratings. 
Fraud detection is clearly one of the major reasons why financial institutions are deploying the technology. Ayasdi reports of one “leading transaction processing firm” that used the company’s technology to increase its ability to detect fraud from less than 30% to 99% within a given set of transactions. 
Ayasdi’s technology has also proven helpful for companies looking to meet risk-oriented regulatory requirements. For financial institutions, the “stress tests” required of many banks by the Federal Reserve fit into this category. Solutions from Ayasdi have been used, for example, by banking holding companies to review and improve the way they measure the impact of various macroeconomic factors on revenues. 
Ayasdi_stagescreen1.jpg
Another goal of FIs is figuring out how to best serve customers based on their different individual needs and preferences. Here, Ayasdi’s technology can be used to generate customer profiles that are both exacting and dynamic, and then conduct analysis based on factors such as purchasing behavior and income. 
What makes the software particularly compelling is the way these functions are integrated in actual use. Segmenting customers by transaction type, asset manager, risk profile, and so on and then comparing the behavior of those subpopulations in different market conditions can provide managers and advisors with major insights into client behavior. This makes it easier to tailor specific products or services to specific clients.
“Whether you are private bank, a major credit card issuer, or an insurance company, you are capturing massive volumes of disparate, heterogenous, disparate data on the ways that your customers behave,” explained Woods. “Ayasdi has enabled our clients to unify their understanding of their clients, to combine these data, and better understand how to serve their clients.”
The Future
Ayasdi has had a busy fall. In addition to its Finovate debut in September, the company announced a strategic alliance with Teradata in October, integrating its data analytics technology with Teradata Unified Data Archit
ecture. Also in October, Ayasdi announced that it was partnering with SumAll.org, a nonprofit data analysis company, to help international aid organizations analyze complex data in their own environments.
And it feels as if the future for its approach to data analysis is bright. Compared to other approaches such as business intelligence, traditional databases and math software, there are a number of areas where Ayasdi believes topological data analysis is superior. Not only is TDA faster and better able to analyze sizable datasets, but topological data analysis does not require coding experience in order to maximize the technology and tends to provide a far more intuitive user experience.
Ayasdi_clientseg.jpg
What’s ahead for Ayasdi? It is looking at deploying an app that suppresses the software in the background, making the solution even more user-friendly (Woods said the technology currently “can be used by data scientists relatively easily with a modest amount of training). For financial institutions, the most exciting potential development is what Woods called “truly predictive analytics.” This solution, which Ayasdi expects to have ready by next quarter,  will build on the company’s advanced analytics to provide users with even better capacity to develop models that accurately anticipate everything from the impact of economic events on market conditions to bacterial outbreaks and gene mutations.
“You’ve got a lot of data,” Woods said. “You can’t understand it. Ayasdi can help you more rapidly understand it, and better make data-driven business decisions.”


Watch Ayasdi’s demo of Ayasdi Finance from FinovateFall 2014.