Fundings

Hawk Announces Series B Round Extension

Hawk Announces Series B Round Extension
By David Penn Posted on
Categories: Alumni News, Daily news, Funding, Fundings, Hawk:AI
  • Munich, Germany-based Hawk announced an extension of its Series B funding round this week.
  • The amount of the extension was not disclosed. But the anti-financial crime regtech said that the investment did increase its valuation.
  • Hawk made its Finovate debut at FinovateSpring in 2022.

Germany-based regtech Hawk announced an extension of its Series B funding round. The amount of the extension was not disclosed, but the company noted that the investment did significantly boost its valuation. The extension included funding from Rabo Investments, and also featured participation from existing investors BlackFin Capital Partners, Sands Capital, DN, Picus, and Coalition. Hawk will use the additional capital to fuel international growth and to help the firm meet growing demand for its AI-powered anti-financial crime solutions.

“We’re honored that Rabobank has recognized the significance of our technology and joins us in building a global market-leading enterprise, while also benefiting first-hand from our solutions and experience,” Hawk CEO Tobias Schweiger said. “I would also like to gratefully thank our existing investors for their ongoing support and look forward to continuing our partnership.”

Hawk, which rebranded from “Hawk AI” earlier this year, offers anti-money laundering (AML) and counter-the-financing-of-terrorism (CTF) technology that leverages explainable AI to detect more financial crime and reduce false positives. In fact, the company’s AI-powered technology delivers a 3x to 5x increase in risk detection and a 70% average reduction in the number of false positives. Banks, payments companies, and other financial services firms benefit from the ability to combine AML transaction monitoring, payment screening, and (Perpetual KYC) pKYC in a single solution that also includes powerful fraud prevention capabilities.

“Rabobank has been working with machine learning applications for many years,” Rabo Investments Managing Director Martijn Scholtes said. “What impressed us most about Hawk is that they’re delivering compelling results using explainable AI. Their advanced screening, detection, and monitoring capabilities align very well with our mission to build a more secure and robust financial ecosystem.”

Founded in 2018 and headquartered in Munich, Germany, Hawk AI made its Finovate debut at FinovateSpring 2022. At the conference, the company demoed its AML Surveillance Suite, which leverages traditional rule-based models and AI to provide financial institutions with next generation AML compliance. “AI should be used to achieve three major outcomes,” Hawk GM of North America Steve Liú explained at the event, “one, finding suspicious and risky behavior that peer rule systems simply cannot; two, decrease the number of false positives drastically by using behavioral profiling on top of existing rules; and third, that all of this is fully explainable for operators and auditors, and available to our users on a platform allowing for secure information sharing.”

Hawk began the year by appointing former HSBC executive Michael Shearer as its Chief Solution Officer. Less than a month later, the company introduced new APAC General Manager Robin Lee, formerly of Napier. In February, Hawk won the XCelent Advanced Technology 2024 award and, in May, the company earned a spot on the 2024 FinTech Global Fincrime Tech 50.

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SpyCloud Locks in $35 Million in New Financing

SpyCloud Locks in $35 Million in New Financing
By David Penn Posted on
Categories: Alumni News, Daily news, Funding, Fundings, SpyCloud
  • Austin, Texas-based cybersecurity firm SpyCloud has raised $35 million in financing.
  • The capital will be used to expand the company’s solutions to help businesses investigate and defend themselves against cybercrime in general and account takeover fraud in specific.
  • SpyCloud won Best of Show in its Finovate debut at FinovateFall 2017 in New York.

In a round led by CIBC Innovation Banking, Texas-based cybersecurity company SpyCloud has secured $35 million in growth financing. The investment follows SpyCloud’s $110 million Series D fundraising from August 2023, and will be used to expand the firm’s solutions to help businesses investigate and defend themselves against financial crime.

“As the threat landscape continues to evolve, it’s imperative that digital identities are well protected since they’re the entry point for so many targeted attacks,” SpyCloud CEO and Co-Founder Ted Ross said. “Building automated solutions that combat cybercrime has been our vision since day one, and the financing we received from CIBC Innovation Banking will allow us to continue innovating and growing.”

SpyCloud’s total capital raised stands at more than $203 million, according to Crunchbase. CIBC Innovation Banking is the investment division of Canadian Imperial Bank of Commerce.

SpyCloud specializes in helping firms combat account takeover. The company’s platform scans and analyzes data from breaches, devices infected with malware, and the dark web to find employee login credentials that have been exposed. SpyCloud leverages this data to provide companies with actionable insights to enable them to blunt fraud losses, stop ransomware attacks, and fully investigate cybercrime incidents as they occur.

With customers ranging from Uber, Zscaler, and Samsonite to LendingTree, Canva, and the University of Oklahoma, SpyCloud recaptures 40 million exposed assets every week. The company’s technology seamlessly integrates into a variety of identity response and orchestration systems including Active Directory, Okta, Microsoft Sentinel, Splunk, and more.

Founded in 2016, SpyCloud won Best of Show in its Finovate debut at FinovateFall 2017 in New York. Headquartered in Austin, Texas, the company has more than 550 customers around the world and has recaptured more than 560 billion identity assets. This spring, SpyCloud released its 2024 SpyCloud Identity Exposure Report, which indicated that more than 60% of all data breaches in 2023 were malware related.

“Threat actors are linking together identity records from hundreds of sources to impersonate their victims,” SpyCloud Chief Product Officer explained, “making it extremely difficult for platforms to differentiate between legitimate users and criminals.”

To this end, the report indicates that there is plenty that individuals can do to make it harder for them to be the victim of stolen credentials. Foremost among these strategies is better password hygiene. SpyCloud recaptured nearly 1.8 billion passwords from dark web sources in 2023 alone – a year-over-year increase of more than 80%. Unfortunately, it is not difficult to see how. Beneath a subhead titled, “The U.S. government continues to struggle with bad password practices,” the report observed “the most common passwords associated with .gov emails were password, pass1, and 123456.”

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Insurtech Eleos Secures $4 Million in Seed Funding

Insurtech Eleos Secures $4 Million in Seed Funding
By David Penn Posted on
Categories: Alumni News, Daily news, Eleos, Funding, Fundings
  • U.K.-based insurtech Eleos has secured $4 million in seed funding.
  • The round was led by Fuel Ventures and Indico Capital. Early-stage investor APX also participated.
  • Eleos made its Finovate debut earlier this year at FinovateEurope in London.

Eleos, an insurtech and income protection provider based in the U.K., has raised $4 million in seed funding. Fuel Ventures and Indico Capital led the round, with Berlin-based early-stage investor APX also participating. Eleos made its Finovate debut earlier this year at FinovateEurope in London.

“With our new funding we will launch more lines of insurance in the life and disability verticals and strike more distribution partnerships in the U.K.” Eleos CEO and Co-Founder Kiruba Eswaran said. “Part of the funding is also earmarked to launch operations in the U.S.”

Eleos embeds white-labelled life insurance and income protection into the online journeys of financial brands. These services and products give Eleos’s partners the ability to benefit from new revenue streams as well as more thorough customer engagement and greater customer retention. Eleos’s FCA authorization also provides its partners – companies like Loqbox, CreditSpring, and Updraft – with full regulatory coverage. Eleos customers also get a variety of free benefits, including 24/7 remote GP services and mental health support.

Fuel Ventures founder Mark Pearson credited Eleos for its experience, understanding of the industry, and access to a substantial market. “With Eleos we’ve found all three and we believe their products encapsulate our thinking about the insurance space – giving people easy access on familiar platforms.”

Founded in 2023, Eleos has already served more than 20,000 customers in the U.K. The company offers personalized and dynamic quotes for its insurance product, and enables potential customers to choose an affordable monthly payment plan and buy their insurance policy in minutes. Additionally, Eleos’s income protection solution helps individuals cover their essential expenses in the event of an illness or injury that requires long-term sick leave. Currently offering embedded insurance for brands, Eleos is planning to offer insurance policies directly to individuals in the future.

“The insurtech market has plenty of room to grow and Eleos is targeting areas which are not only sizable but overlooked by other current players globally,” Indico Capital Partners Managing General Partner Stephan Morais said.

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Blend Labs Raises $150 Million, Forges Strategic Partnership with Haveli Investments

Blend Labs Raises $150 Million, Forges Strategic Partnership with Haveli Investments
By David Penn Posted on
Categories: Alumni News, Blend, Daily news, Funding, Fundings
  • Cloud banking services provider Blend raised $150 million in new funding from PE firm Haveli Investments.
  • The investment comes in the form of convertible preferred stock with a zero percent coupon.
  • Blend Labs is an alumni of both FinovateSpring and our developers conference FinDEVr Silicon Valley, presenting at both events in 2016.

Cloud banking services provider Blend has secured an investment of $150 million from technology-focused private equity firm Haveli Investments.

The investment comes in the form of convertible preferred stock with a zero percent coupon. Blend will use most of the capital – approximately $145 million – to repay amounts payable under its current credit agreement. The remainder of the investment will be used for general corporate purposes. Overall, the investment is designed to fortify Blend’s financial position and balance sheet, paving the way for long-term growth and value creation.

“This partnership with Haveli reflects confidence in Blend’s continued journey to transform financial services and is an important show of faith in our growth strategy,” Blend Co-founder and Head Nima Ghamsari said. “We look forward to working with Haveli to advance our goal of driving innovation in the space and delivering lasting value for our customers and shareholders.”

Blend made its Finovate debut at FinovateSpring in 2016. The company returned to the stage later that year to demo its technology at our developers conference, FinDEVr Silicon Valley. In the years since, Blend has grown into a major cloud banking services provider helping financial services firms process $1.7 trillion in loan applications in 2022, and capturing more than 23% of mortgage market share in the second half of that year. So far in 2024, Blend has forged partnerships with Fannie Mae, Randolph-Brooks Federal Credit Union, Citizens Bank, and Michigan Schools and Government Credit Union (MSGCU).

As part of this week’s investment, Brian Sheth, Chief Investment Officer with Haveli Investments will join Blend’s board of directors. In a statement, Sheth praised the company as a market leader in providing mortgage and consumer banking software for banks, credit unions, and other lenders. “We have known the Blend team for several years and have been impressed with their innovation and vision,” Sheth said. “With a blue-chip customer base and an improved balance sheet, we believe Blend is well positioned to succeed with its modern, next-gen platform.”

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Data Privacy Vault Skyflow Secures $30 Million in New Funding

Data Privacy Vault Skyflow Secures $30 Million in New Funding
By David Penn Posted on
Categories: Alumni News, Daily news, Funding, Fundings, Skyflow
  • Data privacy vault Skyflow has raised $30 million in an extension Series B round led by Khosla Ventures.
  • The investment comes amid growth in the market for sensitive data protection for Large Language Models (LLMs).
  • Founded in 2019, Skyflow made its Finovate debut at FinovateSpring 2022.

Data privacy vault Skyflow raised $30 million in an extension of its Series B funding round. The round was led by Khosla Ventures, and featured participation from existing investors Mouro Capital, Foundation Capital, and Canvas Ventures. The investment takes the company’s total equity capital to $100 million, according to Crunchbase. Valuation information was not immediately available.

The investment in Skyflow arrives as the proliferation of Large Language Models (LLMs) raises the stakes when it comes to protecting sensitive data. Skyflow’s global network of data privacy vaults enables businesses to isolate, protect, and manage sensitive customer data across any app, data cloud, or LLM. Skyflow supports nearly a billion records of user data for its customers and processes more than two billion API calls a quarter.

“We see an urgent need for companies to make privacy a core part of their technology stack as LLMs and AI hurdle forward, ingesting more and more personal data,” Skyflow Co-founder and CEO Anshu Sharma said. “Skyflow is the only solution that allows companies to build privacy by design into their technological infrastructure without overhauling anything – anywhere in the world.”

Skyflow credits a proprietary technology – polymorphic encryption – for its ability to protect data without inhibiting its usability for critical business tasks. Skyflow’s technology serves as a “privacy trust layer,” blocking sensitive information from entering AI models, and making adoption of AI technology safer. Companies can personalize their own definition of “sensitive data” as needed, providing additional protection beyond PII, intellectual property, or other categories of critical information.

“With the advent of enterprise applications powered by AI, the need for trust and privacy infrastructure is key to protecting sensitive data,” Khosla Ventures founder Vinod Khosla said. “Skyflow is rethinking how data can be managed and protected across any app, cloud, or LLM, making it a company that will be vital for every enterprise business.”

Founded in 2019, Skyflow made its Finovate debut at FinovateSpring 2022. At the conference, the company showed how its technology helps financial services companies securely orchestrate sensitive data and exchange it with third party providers without having to directly handle the data itself.

Interested in demoing at FinovateSpring in San Francisco in May? We are happy to read applications from innovative companies with new solutions that are ready to show. Visit our FinovateSpring hub today to learn more.

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AI Squared Secures $13.8 Million in Series A Funding

AI Squared Secures $13.8 Million in Series A Funding
By David Penn Posted on
Categories: AI Squared, Funding, Fundings
  • AI integration platform AI Squared raised $13.8 million in Series A funding this week.
  • Participating in the round were ANSA Capital (Allan Jean-Baptiste), NEA (Greg Papadopoulos), and Roger W. Ferguson Jr., former Vice Chair of the Federal Reserve System and CEO of TIAA.
  • AI Squared made its Finovate debut at FinovateSpring 2023 in San Francisco, California.

AI integration platform provider AI Squared has raised $13.8 million in Series A funding. The Washington, D.C.-based startup, which made its Finovate debut at FinovateSpring last year, said that the investment will help the company fulfill its goal of “fostering widespread AI adoption by embedding AI-generated data insights directly into mission-critical applications and everyday workflows,” wrote AI Squared Founder and CEO Benjamin Harvey in a blog post this week.

“As we embark on the next phase of our post-Series A journey,” Harvey added, “AI Squared remains committed to advancing seamless AI integration and real-time feedback capabilities through the development of reverse ETL and lean AI functionalities.”

Participating in the Series A were ANSA Capital (Allan Jean-Baptiste), NEA (Greg Papadopoulos), and Roger W. Ferguson Jr., former Vice Chair of the Federal Reserve System and CEO of TIAA. The investment takes the company’s total equity capital to $19.8 million, according to Crunchbase.

Founded in 2019, AI Squared helps companies integrate AI functionality into their applications. The company’s integration platform enables the integration of AI and machine learning technology into any web-based application, shortening integration times from eight months to eight hours. AI Squared enables companies to build seamless connections between data sources and applications; give their business teams easily consumable, relevant, actionable insights; and create feedback loops between consumers and developers that enhance data quality.

In his statement on the company’s recent funding, Harvey underscored that third point about AI Square’s technology, emphasizing it as a “core differentiation” from other providers. “By incorporating real-time feedback mechanisms, like survey questions, directly within business application workflows, we create a feedback loop between line of business employees and data science teams,” Harvey explained. “This allows for prompt improvements to the performance and accuracy of AI models and how insights are delivered to the business.” The result, Harvey said, was a gain in “confidence in AI’s effectiveness within business operations and workflows.”

Learn more about the company and its founder. Read our interview with AI Squared’s Benjamin Harvey from August of last year.

Interested in demoing at FinovateSpring in San Francisco in May? We are happy to read applications from innovative companies with new solutions that are ready to show. Visit our FinovateSpring hub today to learn more.

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More Than $113 Million Raised by Nine Alums in Q1 2024

More Than $113 Million Raised by Nine Alums in Q1 2024
By David Penn Posted on
Categories: Allied Payment Network, Altro, Amplify Life Insurance, Argyle, David's column, Debbie, Digital Onboarding, Funding, Fundings, NayaOne, Quarterly Funding, Stratyfy, Trust & Will

Nine Finovate alums raised more than $113 million in Q1 of 2024. The relatively low fundraising results for the first three months of the year do reflect larger trends in fintech funding. But the fact that nearly half of the alums that raised funds in Q1 did not disclose the amounts raised tells us that the quarterly funding haul for Finovate alums was higher than the $113 million we have been able to confirm.

Previous quarterly comparisons

  • Q1 2023: $453 million raised by 13 alums
  • Q1 2022: $365 million raised by 11 alums
  • Q1 2021: $3.3 billion raised by 26 alums
  • Q1 2020: $1.3 billion raised by 14 alums

The biggest fundraising month of Q1 was likely January, which featured the $58 million investment secured by Digital Onboarding. Again, the high number of “amount undisclosed” investments makes comparison difficult.

Top Equity Investments from Q1 2024

  • Digital Onboarding: $58 million
  • Argyle: $30 million
  • Amplify Life Insurance: $16.3 million
  • Altro: $4 million

As noted above, Digital Onboarding pulled in the biggest investment of any Finovate alum in the first three months of the year. Also noteworthy was the $30 million raised by Argyle, a real-time income data platform that made its Finovate debut at FinovateSpring in 2022.

Here is our detail alum funding report for Q1 2024.

January: More than $58 million raised by three alums

February: More than $21 million raised by three alums

March: More than $34 million raised by three alums

If you are a Finovate alum that raised money in the first 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.

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Payroll Connectivity Provider Argyle Raises $30 Million in Series C Funding

Payroll Connectivity Provider Argyle Raises $30 Million in Series C Funding
By David Penn Posted on
Categories: Alumni News, Argyle, Daily news, Funding, Fundings
  • Payroll connectivity provider Argyle raised $30 million in Series C funding this week.
  • The round was led by Rockefeller Asset Management’s Fintech Innovation Fund.
  • New York-based Argyle made its Finovate debut at FinovateSpring 2022.

Income and employment data provider Argyle secured $30 million in new funding in a Series C round led by Rockefeller Asset Management’s Fintech Innovation Fund. Bain Capital Ventures, SignalFire, and Checkr also participated in the round. The investment consists of both equity and debt and takes the company’s total capital raised to more than $100 million. The funding will help Argyle continue to adapt and expand its automated income and employment verification platform. No valuation information was provided in the funding announcement.

This week’s news comes in the wake of a year in which Argyle notched a number of significant accomplishments and milestones. In 2023, Argyle onboarded more than 90 new customers. The company also boosted its total customer count to more than 140 firms in verticals such as mortgage, personal lending, and background screening.

To date, Argyle has processed more than 1.6 million annual verifications. This includes direct-source income and employment verifications for 90% of the U.S. workforce. Last year, the company achieved a 3.6X growth in bookings, generated cost savings for up to 80% of customers, and built integrations with lending partners ICE and nCino. Argyle also became the first consumer-permissioned provider to integrate into Dark Matter’s Empower LOS.

“Our verticalized approach and direct-source model has provided accurate data and an enhanced consumer experience for our customers,” Argyle CEO and founder Shmulik Fishman said. “With this capital from our valued investors, we will continue to tailor our solutions to priority verticals while improving the verification experience for the next wave of prospective customers that can benefit from our services.”

In an extended “Letter From Our Founder & CEO”, Fishman articulated the journey his company has made and underscored Argyle’s commitment to what he referred to as the “human side of digital transformation.” Noting that even “novel technology” is “only half the equation,” Fishman added “widespread digital transformation only happens when people trust new technologies enough to change their behavior. And change is really hard – even when it’s absolutely essential.” Calling the current moment Argyle’s “enterprise-adoption era” Fishman wrote that now was the time to ensure that “people and process take center stage.”

Headquartered in New York and founded in 2018, Argyle made its Finovate debut at FinovateSpring 2022. At the conference, company co-founder and COO Billy Marsden showed how Argyle’s Link 4.0 design update enhanced account connectivity, and decreased drop-off rates for users of its real-time income data platform. Link 4.0 also upgrades the platform’s visual style to boost consistency across Argyle’s product line.

Interested in demoing at FinovateSpring in San Francisco in May? We are happy to read applications from innovative companies with new solutions that are ready to show. Visit our FinovateSpring hub today to learn more.

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Finovate Alums Raised More Than $307 Million in Q4; $1.2 Billion in 2023

Finovate Alums Raised More Than $307 Million in Q4; $1.2 Billion in 2023
By David Penn Posted on
Categories: Alumni News, Daily news, Funding, Fundings, Quarterly Funding

Finovate alums raised more than $1.2 billion in equity funding in 2023. The total funding for the year reflects the continued slowdown in fintech funding that began in 2022.

Previous Annual Comparisons

In the fourth quarter of 2023, eleven Finovate alums raised more than $307 million in equity funding. Note, however, that this sum does not include the equity portion of the investment secured by SumUp, for example. The quarterly total also does not include the investment received by Icon Solutions, the amount of which was undisclosed.

Previous Quarterly Comparisons

  • Q4 2022: More than $380 million raised by 15 alums
  • Q4 2021: More than $1.2 billion raised by seven alums
  • Q4 2020: More than $472 million raised by 17 alums
  • Q4 2019: More than $876 million raised by 21 alums
  • Q4 2018: More than $800 million raised by 19 alums

Nevertheless, the fourth quarter alumni fundraising total approximates that of both last year’s Q4 and the final quarter of 2020.

Top Quarterly Equity Investments

  • Adlumin: $70 million
  • Paysend: $65 million
  • Scalable Capital: $64.7 million

Three investments in the fourth quarter of 2023 stood out among the others: Adlumin, Paysend, and Scalable Capital all announced fundraisings of more than $60 million in Q4. Also noteworthy was the $40 million raised by Stash in October.

Combined, the top three quarterly equity investments from our alums represent more than 65% of the total alum funding haul for Q4 2023.

Here is our detailed alum funding report for Q4 2023.

October 2023: $68 million raised by three alums

November 2023: $145 million raised by three alums

December 2023: More than $94 million raised by five alums

If you are a Finovate alum that raised money in the fourth quarter of 2023, 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.

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Eight Alums Raised More Than $293 Million in Q3 2023

Eight Alums Raised More Than $293 Million in Q3 2023
By David Penn Posted on
Categories: David's column, Funding, Fundings, Quarterly Funding

A few months ago we opined here on the Finovate blog that the funding woes that had plagued fintech in the first half of 2023 might abate in the second half.

If Q3 is any indication, then it will have to be the fourth quarter of the year when that happens.

Eight Finovate alums raised more than $293 million in Q3 of 2023. The number of alums raising funding was consistent with last year’s total. But the overall level of funding for Finovate alums was down from previous third quarters. In fact, the last time Q3 alum funding was less than $1 billion was in 2018, when 19 alums raised $400 million.

Admittedly, two of the eight alums to report funding in the third quarter of 2023 did not disclose funding amounts. This means that the total investment for Finovate alums in Q3 could be significantly higher than what is known today. And it was interesting to note how many fintechs that did secure investment over the summer months were headquartered in developing markets. But that aside, for markets in the U.S., the U.K., and Europe, in particular, the fintech funding drought continues to define the terrain.

Previous Quarterly Comparisons

  • 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 14 alums
  • Q3 2019: More than $1 billion raised by 21 alums

Top Equity Investments for Q3 2023

The top equity investment of the quarter among Finovate alums was clearly the $110 million raised by SpyCloud. The company, which won Best of Show in its Finovate debut at FinovateFall in 2017, specializes in helping businesses fight account takeover fraud, as well as other types of cybercrime.

Headquartered in Austin, Texas, and founded in 2016, SpyCloud gives organizations visibility into exposed credentials actively traded on the dark web. In response, SpyCloud’s platform not only uncovers these stolen credentials, but also leads to the capture of 40 million exposed assets every week. The company’s Q3 investment takes its total equity funding to more than $168 million.

Also noteworthy in the third quarter were the investments secured by Tradeshift ($70 million), ThetaRay ($57 million), and Splitit ($50 million).

Here is our detailed alum funding report for Q3 2023.

July 2023: More than $4.5 million raised by three alums

August 2023: More than $232 million raised by four alums

September 2023: $57 million raised by one alum

If you are a Finovate alum that raised money in the third quarter of 2023 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.

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Ten Alums Raised More Than $209 Million in Q2 2023

Ten Alums Raised More Than $209 Million in Q2 2023
By David Penn Posted on
Categories: Alumni News, David's column, Funding, Fundings, Quarterly Funding

Do any of these headlines sound familiar?

“Global fintech funding nearly halves to $23B in H1 2023”

“North American Startup Funding Fell Across All Stages in Q2”

“Most Active Investors Pare Dealmaking in First Half of 2023”

These are some of the recent headlines from sources such as Crunchbase News and S&P Global Market Intelligence. While there was some real enthusiasm around Generative AI as the summer began, the reality is that technology investors remain cautious in the face of inflationary fears, higher interest rates, and a number of high-profile blowups in some of the more speculative areas of technology. This challenge has been especially acute in fintech. Not only have concerns over COVID-era overinvestment and “malinvestment” been loud in this space, but also fintech has more direct exposure to some of the economic discontents mentioned above.

The retrenchment in fintech funding was in evidence during Q2 2023 for our Finovate alums, as well. Over the quarter, ten alums raised more than $209 million. This makes Q2 2023 one of the lowest quarters in terms of equity capital raised by our alums in many years. Note that two of the nine alums that reported receiving investment dollars in April, May, and June – Agent IQ and EverC – did not disclose the amounts of their fundings. Nevertheless, this quarter’s total is a clear reflection of the relative tepid investment climate across technology writ large.

Previous quarterly comparisons

  • Q2 2022: More than $984 million raised by eight alums
  • Q2 2021: More than $2.8 billion raised by 14 alums
  • Q2 2020: More than $975 million raised by 15 alums
  • Q2 2019: More than $1.8 billion raised by 29 alums
  • Q2 2018: More than $1.5 billion raised by 26 alums

The biggest fundraising alum of the quarter was NYMBUS. The company enables financial institutions to digitally transform their operations through a variety of solutions including SmartCore, SmartPayments, and its standalone digital bank alternative, SmartLaunch. Founded in 2015 and headquartered in Jacksonville, Florida, NYBUS made its most recent Finovate appearance at FinovateFall 2019.

Top Equity Investments

  • NYMBUS: $70 million
  • PayNearMe: $45 million
  • BioCatch: $40 million

Other big alumni fundraisers in Q2 2023 were PayNearMe and BioCatch, which raised $45 million and $40 million, respectively. PayNearMe is a three-time Finovate Best of Show winner, making its Finovate debut back in 2010. The Santa Clara, California based fintech offers a cash payments platform that facilitates online purchases and billpay.

Headquartered in Tel Aviv, Israel, BioCatch demoed its technology at FinovateFall in 2014. Since then, the behavioral biometrics innovator has grown into a major player in the advanced fraud protection industry. The firm continuously protects more than five billion sessions per month and serves more than 250 million users around the world. In 2022, BioCatch prevented more than $2 billion in fraud losses.

Here is our detailed alum funding report for Q2 2023.

April: More than $35 million raised by three alums

  • EverC: undisclosed – post
  • Stratyfy: $10 million – post
  • Tyfone: $25 million – post

May: More than $127 million raised by five alums

  • Agent IQ: undisclosed – post
  • BioCatch: $40 million – post
  • Cable: $11 million – post
  • Kognitos: $6.75 million – post
  • NYMBUS: $70 million – post

June: More than $47 million raised by two alums

  • PayNearMe: $45 million – post
  • StockRepublic: $2.81 million – post

If you are a Finovate alum that raised money in the second quarter of 2023 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.

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Mitigram Raises $11 Million for its Global Trade Financing Platform

Mitigram Raises $11 Million for its Global Trade Financing Platform
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, Funding, Fundings
  • Global trade financing platform Mitigram landed $11 million in funding.
  • The investment will bring Mitigram’s total funding to $38 million.
  • Mitigram will use the funding to scale its operations via software-as-a-service offerings.

Digital global trade financing platform Mitigram announced today it received $11 million in funding, boosting its total raised to $38 million.

The company will use the funds to scale its operations via software-as-a-service (SaaS) offerings and add competitive advantage by scaling its network. “The lack of connectivity is trade finance’s biggest cost,” said Mitigram’s Interim CEO Malin Bäcklund. “Around 4 billion paper documents are manually generated, checked and transported in trade each year, which creates the perfect storm for high operating costs and a spiraling lack of control. At Mitigram, we are passionate about closing the gap that is estimated to cost the industry $4 trillion in total each year. This new funding round will allow us to continue doing exactly that.”

Mitigram was founded in 2014, creating a digital exchange in global trade financing. The company offers three main products:

  • MitiSquare, which helps companies assess risks, capacity, and pricing from partner banks in global trade financing.
  • MitiManager, which allows organizations to view, manage, and structure all trade financing data.
  • MitiGateway, which digitizes origination records and manages the end customer experience.

Among the company’s clients are Louis Dreyfus Company, Bridgestone, Vale, Ericsson, ArcelorMittal, Trafigura, Siemens Healthineers, and over 150 banks.

As part of today’s announcement Mitigram CEO Milena Torciano is stepping down, but will remain on the company’s board of directors. Bäcklund, who currently serves as CEO of Moor Holding, will act as interim CEO until a replacement is found.

“We founded Mitigram with the mission to open up a closed market, and to streamline and augment global trade and I am incredibly proud of the tremendous growth that we have achieved since I joined six years ago,” said Torciano. “Today, we are trusted by more than 300 multinational corporations, leading commodity traders and financial institutions, and have facilitated $100+ billion in flows currently across 185 markets. This investment is an excellent opportunity to further build on the strong foundations we have established, and to deliver best practice for digitalized trade finance.”

Photo by Mikhail Nilov

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