Dotfile

Six Alums Raised More Than $16 Million in Q3 2024

Six Alums Raised More Than $16 Million in Q3 2024
By David Penn Posted on
Categories: 3forge, Alumni News, Dotfile, Funding, Illuma Labs, NYMBUS, Quarterly Funding, ReceiptHero, Scamnetic

According to market intelligence platform Tracxn, funding for U.S.-based tech companies in Q3 of this year fell, both in comparison to the previous quarter as well as when compared to Q3 2023. Tracxn also reported that the number of tech unicorns actually increased this year compared to last year, with 13 new unicorns acknowledged in Q3 2024 compared to just five in Q3 2023. And while the report took this as a positive sign that “investor sentiment is stable,” there are other indications that the much-anticipated return to more robust funding trends for tech companies in general, and fintechs in particular, has yet to arrive.

Laura Bock, partner at QED Investors, was quoted in The Financial Brand back in January saying that “53% of fintechs will be cash out by Q3 2024 if they do not raise or exit.” We have a few more days before some of the research firms begin producing their Q3 reports on fintech funding, but clearly expectations are low.

Looking at our own Finovate alum funding for Q3 2024, we see plenty of evidence of the funding drought. In terms of the number of alums that reported receiving funding, as well as the amounts invested, Q3 alum funding for this year is as low as it has been in quite some time.

Previous quarterly comparisons

  • Q3 2023: More than $293 million raised by eight alums
  • Q3 2022: More than $1 billion raised by eight alums
  • Q3 2021: More than $1.1 billion raised by 14 alums
  • Q3 2020: More than $1.2 billion raised by 21 alums

Top equity investments

The top equity investment for Finovate alums in Q3 2024 was the $9 million raised by Illuma Labs. Headquartered in Plano, Texas, and founded in 2016, Illuma Labs debuted at FinovateSpring 2019 and has been a staple of our Spring and Fall conferences ever since. The company won Best of Show at FinovateFall in September for a demo of its Illuma Shield real-time voice authentication solution, now equipped with the latest deepfake detection technology to help prevent account takeover fraud.

Also noteworthy were the fundraisings from two brand-new alums: Dotfile, a regtech based in Paris, France, which debuted at FinovateEurope in February; and Scamnetic, an AI-powered anti-fraud solution provider that first appeared on the Finovate stage at FinovateFall in New York last month.

Here is our detailed alumni funding report for Q3 2024.

July 2024: An undisclosed amount raised by one alum

August: More than $1.3 million raised by two alums

September: More than $15 million raised by three alums

If you are a Finovate alum that raised money in the third quarter of 2024 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.

Photo by Kindel Media

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French Regtech Dotfile Secures €6M in New Funding

French Regtech Dotfile Secures €6M in New Funding
By David Penn Posted on
Categories: Alumni News, Daily news, Dotfile, Funding
  • France-based regtech Dotfile has secured $6.7 million (€6 million) in new funding.
  • The round was led by Seaya Ventures. The company’s existing investors Serena and Hexa also participated in the investment.
  • Dotfile made its Finovate debut earlier this year at FinovateEurope 2024 in London.

Fresh off its FinovateEurope debut earlier this year, Paris-based fintech Dotfile has raised $6.7 million (€6 million) in funding. The round was led by Seaya Ventures, and featured participation from the firm’s existing investors Serena and Hexa. In a statement, the regtech innovator indicated that the funding will power its R&D efforts as well as fuel its international expansion plans.

Dotfile leverages AI to enable banks and other financial institutions to automate customer onboarding and ensure compliance with anti-money laundering (AML) regulations. The company’s business verification platform improves upon the traditionally manual, complex, and expensive Know-Your-Business (KYB) process by aggregating dozens of different data sources to produce a comprehensive picture of a business within 10 seconds.

“More than $200 billion is invested in compliance every year, yet 2% of the world GDP is still going through the money-laundering rinse cycle, which is fueling crime,” Dotfile CEO Vasco Alexandre said. “AI could change how effective those policies are and the positive impact for our societies could be massive.”

The investment in Dotfile comes at a time of growing awareness of the importance of compliance in financial services – and the ability of technology to help banks and other institutions meet these obligations. From banks seeking to maximize opportunities in fintech partnerships to cryptocurrency platforms eager for greater clarity on digital asset regulations, institutions throughout financial services are finding themselves in an increasingly dynamic regulatory environment. To help companies better manage their compliance obligations, a new generation of fintechs such as Dotfile have emerged with tools, workflows, and other solutions–often AI-powered–to streamline and enhance verification, ensure accurate auditability, and reduce costs.

“Compliance is costing banks up to 10% of their revenue, 1 out of 4 employees work in a compliance-related position and existing systems are sometimes more than a decade old,” Alexandre said. “With the competition from fintech intensifying, a transition is bound to happen and generative AI is the tipping point.”

Dotfile made its Finovate debut at FinovateEurope 2024 in London. At the conference, the French regtech demonstrated its end-to-end business verification platform that empowers compliance teams to streamline their operations. The company was founded in 2021 by Alexandre and Titouan Benoit, and received major support from startup studio Hexa (formerly known as eFounders). Today, Dotfile has more than 50 customers across 10 countries, including banks, private equity firms, and fintechs. Most recently, the company announced a partnership with private market investment platform Roundtable, helping the firm improve its KYC process to optimize and accelerate customer onboarding.

Photo by Paul Deetman

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FinovateEurope 2024 Sneak Peek Series: Part 4

By Madeline Clines Posted on
Categories: Corsound AI, Dotfile, Eleos, Finerative, FinovateEurope 2024, FinovateEurope 2024 Sneak Peek, SkenarioLabs, Tuum, Zeed

A look at the companies demoing at FinovateEurope in London on February 27. Register today using this link and save 20%.

Corsound AI

Corsound AI utilizes innovative technology to verify customers’ identities for financial institutions, leveraging over 200 patents to detect AI scams and voice fraud.

Features

  • Provides an innovative method to detect deepfakes in call centers, with or without DB
  • Delivers a revolutionary way to prevent identity theft
  • Offers a unique voice-face matching technology

Who’s it for?

Banks, credit unions, payment providers, and small-and-medium-sized businesses.

Dotfile

Dotfile is an end-to-end business verification platform that automates KYB and AML procedures, reduces fraud, and streamlines compliance operations.

Features

  • Verifies businesses and UBOs and maps corporate structures
  • Automates onboarding, from data collection to risk scoring and periodic monitoring
  • Creates flexible risk-scoring models with custom rules

Who’s it for?

Payment service providers, banks, fintechs, forex platforms, private equity firms, crypto brokers, and asset managers.

Eleos

Eleos partners with consumer brands to embed income protection and life insurance into their online journeys.

Features

  • Bridges access and awareness gap that has kept penetration of these products down
  • Adds additional revenue stream for distributors
  • Improves customer retention rate for brands

Who’s it for?

Direct to consumer fintechs.

Finerative

Finerative is a Gen-AI native startup bringing generative technology to the financial space.

Features

  • Improves productivity and operational efficiency while driving revenues
  • Increases client satisfaction
  • Delivers innovation

Who’s it for?

Universal banks, private banks, asset management entities, wealth management institutions, and independent financial advisors.

SkenarioLabs

SkenarioLabs’ predictive data analytics solution integrates an advanced suite of risk assessment and reporting tools to guide sustainable investment and lending decisions in real estate.

Features

  • Minimal data requirements: delivers accurate insights from address-only data
  • Single-platform integration: provides value, risk, & ESG assessments for all asset classes
  • Streamlined compliance: offers flexible analytics

Who’s it for?

Banks and building societies, real estate investment and advisory firms, and insurance providers.

Tuum

Tuum’s next generation core banking software platform removes legacy constraints, transforms existing business models, builds new business models, and unlocks new revenue streams. Core Banking. Without Limits .

Features

  • Delivers a cloud native, modular, API first software – unlimited scalability and flexibility
  • Features Beyond Core – accounts, lending, cards, & payments from a single platform
  • Offers a highly configurable platform – launch new products in minutes

Who’s it for?

Retail and corporate banks, EMIs, fintechs, and financial institutions.

Zeed

Zeed offers a platform for public companies and asset managers to reach, educate, and engage retail investors using AI and video content.

Features

  • Reaches and educates investors where they already are
  • Utilizes AI-generated financial video content
  • Tracks attribution to share price liquidity and AUM

Who’s it for?

Public companies, asset managers, retail investors, and brokerage platforms.

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