Finovate Alums Shine in 2019 Forbes Fintech 50 Roster

A baker’s dozen of Finovate alums has been honored this week with spots on the 2019 Forbes Fintech 50, an annual aggregation of what the editors called “the most innovative companies in fintech.”

Here are the Finovate alums that made the cut. Read the full list.

“Recognition as a leading innovator in fintech is tremendous validation for the hard work we’ve done at Marqeta to open the industry up to the possibilities and opportunities of modern card issuing,” company CEO and founder Jason Gardner said. Marqeta is among the 20 companies to make its first appearance on the Forbes Fintech 50 roster.

Also earning their first appearances on Forbes Fintech 50 roster are New York based mobile investment platform Stash and San Francisco supply chain payments innovator Tradeshift.

“Very excited to be included in the 2019 Forbes Fintech 50!,” Stash tweeted once the news was released at the start of the week, “Monday = made.”

“We made the list!” Tradeshift tweeted this morning.

Summarizing this year’s selection of top fintechs, the editors noted that while 19 out of the 50 fintechs featured are unicorns with valuations of more than $1 billion, a nearly equal amount – 20 startups – are making their first showing on Forbes top fintech list. The two areas where newcomers were more prevalent, according to the editors, were payments technology and startups serving the un- and underbanked.

Plaid Acquires Quovo in $200 Million Deal

San Francisco-based fintech app provider Plaid has made its first major acquisition with the purchase of competitor Quovo for $200 million, reports Antony Peyton of Fintech Futures (Finovate’s sister publication).

Plaid hasn’t gone public on the price, but a source familiar with the deal spoke with CNBC to spill the financial beans. Plaid reckons the acquisition will make it easier for developers to build products that incorporate investment and brokerage data.

New York-based Quovo offers investment, insurance, and loan account coverage. Its platform is used by such firms as Betterment, Wealthfront and SoFi, as well as wealthtech companies like Stifel, Vanguard, Empower Retirement, and John Hancock.

Some of Plaid’s users include cryptocurrency exchange Coinbase, robo-advisors Betterment and Wealthfront (same as Quovo), trading app Robinhood and PayPal’s digital wallet Venmo.

Plaid plans to build a single platform to let users “build any financial application – from payments to lending to wealth management.”

This deal follows on from last month when Plaid enjoyed a $250 million Series C funding round. With that investment, the start-up earned an impressive valuation of $2.65 billion.

Back in October 201, Plaid linked up with JP Morgan Chase to help the bank make a move toward open banking by enabling account holders to share their financial data with third-party fintech applications.

Prior to that, in May 2018, the company expanded to Canada as its first international market.

The firm was founded in 2013 and has got the backing of some big names. These include Goldman Sachs, Amex, Citi, and Google Ventures. About two years ago Plaid got a handy $44 million in funding led by Goldman Sachs.

Plaid CEO and co-founder Zach Perret presented API for Financial Infrastructure at FinDEVr Silicon Valley 2014. Quovo is a two-time veteran of our developers conferences: sharing the stage with SoFi at FinDEVr New York 2017, and teaming up with Betterment at FinDEVr New York 2016.

Finovate Alumni News

On Finovate.com

  • Braintri Drives Insurtech Innovation in Europe.
  • Plaid Acquires Quovo in $200 Million Deal.

Around the web

  • Salt Edge joins Temenos Marketplace as the community’s first data aggregator.
  • BBVA leads $12 million Series A round for payments startup Grabango.
  • Cardlytics CEO Scott Grimes appointed board chair of FinTech Atlanta.
  • FICO awarded five new patents for fraud, AI, and advanced analytics technologies.
  • PYMNTS.com interviews Ondot CEO Bharghavan Vaduvur.
  • Akamai Technologies reveals plans to acquire customer identity access management firm, Janrain.

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.

Plaid Raises $250 Million Series C Round Led by Mary Meeker

Provider of APIs for financial infrastructure, Plaidclosed a $250 million Series C round. The company’s founders, Zach Perret and William Hockey, discussed the funds in a blog post today, along with Plaid’s plans to “reinvest in the fintech ecosystem,” an industry they say is “just getting started.”

The investment, which boosts Plaid’s total funding to $310 million, comes with celebrity endorsement from Mary Meeker. Meeker led the round and will join the company’s board of directors. Additional investors include Andreessen Horowitz, Index Ventures, Goldman Sachs, NEA, and Spark Capital.

“Plaid has built an important underpinning for financial services on the web and mobile. Plaid allows businesses to rapidly launch innovative products, drive growth and enhance consumer satisfaction. We are excited about the evolution and potential ahead,” Meeker said.

The San Francisco-based company will use the funds to onboard new employees and expand its operations. “We’re focused on shipping and scaling products that will both serve the growth and scale of these customers, and become the foundation for fintech for decades to come,” the founders said in the blog post. “Every company is becoming a fintech company…. Plaid’s role is to empower these innovators with a platform—and a data network—that delivers access to the financial system.”

TechCrunch, which pinned Plaid as a company to watch in 2019, reported that Plaid is now valued at $2.65 billion. This is up significantly from the company’s last valuation in 2016, which sat at $200 million after Plaid’s $44 million Series B round.

At FinDEVr San Fransisco 2014, Perret gave a presentation about leveraging the Plaid API for financial infrastructure. Since then, the company has grown to 175 employees and offers six products, including Auth, an account authentication tool; Balance, which pulls account balance information in real-time; Identity, which leverages bank data to verify consumer identity; Transactions, which pulls bank statement data across banks; Assets, a verification of assets tool; and Income, a tool that validates a consumer’s income and verifies direct deposit data.

This May, Plaid launched in Canada– its first international market. The startup also partnered with JPMorgan Chase to help the bank make a move toward open banking by enabling account holders to safely share their financial data with third party fintech applications.

Finovate Alumni News

On Finovate.com

  • Plaid Raises $250 Million Series C Round Led by Mary Meeker.
  • Bill.com Achieves NACHA Certification.

Around the web

  • Narrative Science introduces its new language-based augmented analytics product, Lexio, in beta.
  • Currencies Direct taps Ripple’s xCurrent for real-time remittances to India.
  • AlphaPoint to support Stellar Lumens.
  • Motive Partners acquires majority stake in Finantix.
  • Camden National Bank further leverages Jack Henry relationship to support demand for growth, innovation.

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.

Plaid Signs Open Banking Agreement with JPMorgan

After making its international debut earlier this year, Plaid, the provider of APIs for financial infrastructure, announced it has linked up with JPMorgan Chase to help the bank make a move toward open banking by enabling account holders to safely share their financial data with third party fintech applications.

Via a secure API, Plaid accesses consumers’ data to help them share their digital financial information with other fintech apps such as Robinhood, Acorns, and Venmo. The cooperation will also offer developers quality data they can use to build new products and services. To put clients in control, Chase has launched a new tool called Account Safe that brings users visibility into which applications are using their data and give them control over the use of their data.

In an announcement on its blog, Plaid stated that it believes today’s partnership “underscores the need for secure and reliable data in the fintech ecosystem.” It continued, “We firmly believe that collaboration with financial institutions is the best way to deliver on the promise to protect consumers and developers. We’re proud of the steps we are taking with Chase towards this reality.”

According to Business Insider, this news comes as Plaid is in talks with investors about a funding round that could raise the company’s valuation to $2 billion. To date, Plaid has raised $59.3 million from investors including Goldman Sachs Investment Partners and Spark Capital.

Plaid has 150+ employees and offers 6 products, including Auth, an account authentication tool; Balance, which pulls account balance information in real-time; Identity, which leverages bank data to verify consumer identity; Transactions, which pulls bank statement data across banks; Assets, a verification of assets tool; and Income, a tool that validates a consumer’s income and verifies direct deposit data. Since it was founded in 2012, Plaid has analyzed more than 10 billion transactions.

At FinDEVr San Fransisco 2014, the company’s founder Zach Perret gave a presentation about leveraging the Plaid API for financial infrastructure. Earlier this year, Plaid was featured by both CNBC and Forbes. At the start of 2018, the company was honored on Forbes’ Fintech 50.

Finovate Alumni News

On Finovate.com

  • Finn AI Closes $11 Million Series A.
  • Plaid Signs Open Banking Agreement with JPMorgan.
  • Moven Enterprise Goes Global.

Around the web

  • Klarna pairs up with Rancourt to let shoppers pay over time.
  • Credit Karma launches new personalized shopping experience.
  • Temenos ramps up AI efforts to power its digital banking platform.
  • Feedzai launches AI-powered Feedzai Genome to help users visualize and fight financial crime.
  • Jumio stays ahead of fraudsters with certified 3D liveness detection.
  • Clover announces additions to its Partner Portfolio with enhanced integrations with Nav, AP Intego Insurance Group, and Gusto.
  • Ayondo forms white label agreement with Phnom Penh Derivative Exchange to provide TradeHub for derivative brokers trading CFDs for PPDE’s clients in Cambodia.

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

  • Daon Inks Deal with South Africa’s Capitec Bank.
  • Lighter Capital Launches Capital Client Perks Program.

Around the web

  • Ping Identity integrates its multi-factor authentication solution, PingID, with Microsoft Azure Active Directory.
  • MoneyTap, DLT-based payment app developed by SBI and Ripple goes live in Japan.
  • OutSystems appoints Tim MacCarrick as new Chief Financial Officer.
  • Baltic International Bank finishes upgrade of its private, corporate, and retail banking offerings courtesy of a partnership with Temenos.
  • Sberbank customers can now add “cash postcards” – automated images with sound – to their money transfers.
  • CNBC features Plaid: the startup you’ve never heard of.
  • Arxan begins a month-long initiative to raise awareness for improved application security and threat intelligence.
  • RightCapital launches white-labeled, native mobile app.

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.

Plaid Goes International

Plaid, a company that has been called the plumbing of fintech, offers technology that allows apps to connect to users’ bank accounts. Today, the San Francisco-based company is making its first move to international territory– Plaid is launching in Canada.

Not only is Plaid’s full API suite available to Canadian developers, the company also added coverage for the region’s largest financial institutions, including Royal Bank of Canada, Scotiabank, TD Canada Trust, Bank of Montreal, CIBC, and Tangerine. It also supports cross-border institutions such as American Express and Capital One.

This announcement comes after the company underwent a months-long beta test with a handful of its Canadian customers, including Drop and Wave. Access is now available to developers looking to launch in Canada and to U.S. developers seeking to expand their services to Canadian citizens.

Plaid has 100+ employees and offers 6 products, including Auth, an account authentication tool; Balance, which pulls account balance information in real-time; Identity, which leverages bank data to verify consumer identity; Transactions, which pulls bank statement data across banks; Assets, a verification of assets tool; and Income, a tool that validates a consumer’s income and verifies direct deposit data. Since it was founded in 2012, Plaid has analyzed more than 10 billion transactions.

Plaid has raised $59.3 million to date. At FinDEVr San Fransisco 2014, the company’s founder Zach Perret gave a presentation about leveraging the Plaid API for financial infrastructure. Plaid has been listed as a Forbes Fintech 50 honoree for three consecutive years and was named to CB Insights’ Fintech 250 list in June of last year.

Finovate Alumni News

On Finovate

  • CrowdFlower Rebrands as Figure Eight to Take Advantage of Booming Interest in AI.
  • Market EarlyBird Unveils Mobile App.
  • Plaid Goes International.
  • Personal Capital Exceeds $7 Billion AUM, Lands $15 Million Credit Extension.

Around the web

  • DeepTarget and Segmint collaborate, combining Segmint’s Data Insights and DeepTarget’s cross-selling platform.
  • NYMBUS wraps up 4-month conversion process for Surety Bank.
  • E-Z Parking & Valet launches Passport’s PassportParking app in Greenville.
  • Allied Irish Bank extends agreement with TSYS to continue processing the bank’s credit and debit card portfolios.
  • Lleida.net granted 4th U.S. patent.

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.