2015 was another big year for mergers and acquisitions in the fintech industry. And whether they were the acquirer or the acquired, Finovate alums were very much a part of the M&A action.
Because terms of many deals were undisclosed, it is difficult to get a precise number on how much money was spent acquiring some of fintech’s most promising startups this year. But looking just at those acquisitions for which figures were available, we can see that 2015 was a banner year in M&A (more than $7 billion) — and that’s just counting alums.
So from the $5 billion deal between FIS and Sungard to the “alum-acquires-alum” mergers of September 2015, let’s take a closer look at some of the major unions of the year that featured Finovate alums.
- “Digital Asset Holdings Acquires Blockchain-as-a-Service Innovator, Blockstack.io”
- “Ciright One Acquires GoNow Technologies”
- “Finicity Acquires Aurora Financial Systems””
- “Banking Suite Provider Urban FT Acquires Wipit”
- “BlackRock Acquires Online Investment Advisor, FutureAdvisor”
- “Holy Yodlee! Envestnet to Buy Yodlee for $660 Million”
- “Guide Financial Acquired by John Hancock Financial”
- “Multifactor Authentication Specialist Toopher Acquired by Salesforce”
- “ReadyforZero Acquired by Avant in Cash and Stock Deal”
- “LearnVest Acquired by Northwestern Mutual for More than $250 Million”
- “Printer Giant Lexmark to Acquire Kofax for $1 Billion”
- “Fidelity Investments Acquires eMoney Advisor for Reported $250 Million”
- “Akimbo Financial Acquired by Payment Data Systems”
- “Kreditech Acquires Kontomierz (now Kontomatik) for Seven Digit Amount”
If you’re a Finovate alum whose merger we’ve missed or acquisition we’ve overlooked, let us know. Send us an email at firstname.lastname@example.org.
Urban FT, a startup that offers card issuers a digital banking suite that includes cards, a mobile app, and web interface, wants to give small card issuers a leg up on the competition.
Today, the company has taken a step in achieving that goal by acquiring digital wallet solutions company, Wipit.
Urban FT states that the Wipit acquisition will help provide a more comprehensive solution-set. The New York-based company is especially keen to tap into Wipit’s telco partnerships with Boost Mobile, Sprint, and Pinsight Media.
To leverage the Wipit team’s experience, Urban FT has hired the California-based company’s key employees.
Urban FT will present its latest offering at FinovateFall in New York in two weeks. Tickets are still available, but going fast.
Wipit last demoed at FinovateSpring 2014 in San Jose where it showed off its Boost Mobile Wallet.
- “Banking Suite Provider Urban FT Acquires Wipit” Come see Urban FT at FinovateFall September 16 & 17.
- Take a look at our latest FinDEVr Previews featuring:
Around the web
- Niklas Adalberth steps down as Klarna’s deputy CEO.
- ShopKeep to offer discounts to members of the MasterCard Easy Savings program.
- Yodlee partners with Salesforce to offer advisers a comprehensive view of their clients’ financial accounts. Come see Yodlee’s presentation at FinDEVr, 6/7 October.
- Monex to incorporate corporate-actions data from Markit. See Markit at FinDEVr 2015 in San Francisco.
- Bank Innovation takes note of the Moven approach to displaying transaction histories.
- Tech Vibes features Trulioo in a look at Vancouver, British Columbia, as a home for fintech innovation. See Trulioo at FinovateFall 2015 in New York.
- Investment News looks for the next robo-adviser acquisition in the wake of BlackRock’s deal with FutureAdvisor.
- Waters Technology highlights Nous, StockViews, AnalytixInsight, and Xignite in a review of how innovators are using market data. See Xignite at FinDEVr 2015 in San Francisco.
- Flint enhances Android app to include immediate electronic receipts via SMS.
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.
Wipit’s mobile wallet just got even handier.
The company unveiled this week omni-channel payment technology that will enable Wipit mobile wallet customers to use their prepaid cash mobile wallets to make payments at the retail point-of-sale, as well as online.
Wipit CEO Richard Kang said, “Omni-payments is a natural extension of our mobile wallet and will allow merchants to provide more options and better payment experiences to their customers.”
The new features expand the range of payment choices for consumers using Wipit’s network, which includes a branded GPR (general purpose reload able) card and in-app services. Brick and mortar retailers benefit from the wallet’s POS payment feature. Online merchants can take payments from consumers who may be unable to make digital payments through other means (for example, credit cards). There is also the advantage of merchants of avoiding interchange fees when transacting via Wipit.
The technology is designed to be easy to implement. Merchants have the option to deploy point-of-sale payment features via closed-loop payment cards, in-app barcodes, or NFC.
Wipit was founded in 2010, and is headquartered in Pasadena, California. The company demoed its Boost Mobile Wallet
at FinovateSpring 2014. See Wipit’s live demo here
This post is part of our live coverage of FinovateSpring 2014.
took the stage to demo Boost Mobile Wallet
“Boost Mobile Wallet lets millions of prepaid wireless customers load cash to their mobile wallet account, then use the funds to send international money transfers, pay bills, or top-up their Boost Mobile phone − all from the convenience of Wipit’s Mobile Wallet app on their Android smartphone or iPhone.
Customers are also provided with a convenient, cost-saving alternative to retail check cashing via Wipit’s in-app Quick Check service. For customers that prefer the convenience of card payments, Boost Mobile Wallet includes a personalized, linked Visa prepaid card that can be used for ATM withdrawals and Visa purchases.”
Presenters: Richard Kang (CEO) and John Janes (COO)
Product distribution strategy: Direct to Consumer (B2C), through other fintech companies and platforms
HQ: Pasadena, CA
Founded: May 2010
Product Launch: May 2013
Cheers to a new year! After ringing in 2014, we wanted take a look back at the capital raised by Finovate alumni in 2013. It was quite a year, with alums pulling in $825 million, $365 million more than in 2012 for an increase of about 80%.
2013 funding summary:
- 62 companies raised $825 million
- Q4 had the most capital, with a total of $294 million raised by 17 companies (more than half by Xero, which landed $150 million).
- October was the busiest month, with $177 million raised (mostly Xero’s $150 million)
- May was second highest with $91 million raised by 7 companies
Last year Finovate alums took in almost twice as much as 2012, when 44 Finovate alums collectively raised
$460 million. The chart below shows the quarter-by-quarter comparison for both years.
— blog post
More than $155 million raised by 14 companies
January — $57 million raised by 6 companies
February — $56 million raised by 5 companies
March — $42 million raised by 4 companies
— blog post
More than $205 million raised by 15 companies
June — $81.7 million raised by 6 companies
May — $91.5 million raised by 7 companies
April — $32 million raised by 2 companies
— blog post
More than $171 million raised by 22 companies
July — More than $63 million raised by 8 companies
August — More than $26 million raised by 6 companies
September — $82 million raised by 9 companies
More than $294 million raised by 17 companies
October— $177 raised by 6 companies
November — More than $87 million raised by 7 companies
December — More than $30 million raised by 6 companies