Connect with us

Fintech

Fintech startups set VC records as the 2021 fundraising market continues to impress

Avatar

Published

on

While waiting for full first-quarter venture capital results for fintech startups to drop, we knew that they were going to be outsized. The Exchange previously explored the pace at which huge venture rounds were invested into the startup niche, noting that by mid-March the fintech market had already recorded a record number of $100 million rounds.

But the largest venture capital rounds are only part of the fintech investing picture, so we were looking forward to getting a deeper look into what happened in the critical startup sector more generally. We’ve now got the data, so today we’re digging in with both hands.


The Exchange explores startups, markets and money. Read it every morning on Extra Crunch or get The Exchange newsletter every Saturday.


Per a CB Insights compilation of Q1 2021 fintech venture capital data from around the world, the first three months of the year were the most valuable period for fintech investing, ever. Somewhat shockingly, the first quarter beat the infamous second quarter of 2018, when Ant Group raised a $14 billion round, so skewing the category’s longitudinal data that some analyst groups simply discount it for analytical purposes.

It wasn’t necessary this time: The 614 tracked fintech deals in Q1 were worth a total of $22.8 billion, per the report, enough to set an all-time high, Ant Group be damned. Per CB Insights, the quarter’s fintech VC deal volume rose a modest 15% compared to the year-ago quarter, while VC dollar volume in the sector shot 98% higher over the same interval.

The boom in funding was a global affair, as we’ll get into shortly. We’re also going to chat sub-sectors in the fintech world, parsing where there’s the most venture activity to track, and, critically, where VCs are pushing — or pulling back — their attention and capital.

So, where did the fintech venture capital market push the most money in the first quarter, and why? We’ll be chatting data as we go, but The Exchange also enlisted VCs from three continents who have made fintech investments to help provide context: We’ll hear from Jesse Wedler, a partner at CapitalG based in North America; Kola Aina, a general partner at Ventures Platform based in Africa; and Shiyan Koh, a general partner at Hustle Fund based in Asia.

Let’s talk a few key fintech numbers, and then rip into venture results by geography and focus.

Huge checks, myriad exits

While we’re looking beyond the largest checks today to get a more holistic perspective on the state of the fintech venture capital world, we cannot discount them. So, briefly, what matters from the mega-round space, or the funding category of rounds worth nine figures and more? Some 57 were raised by fintech startups around the world in the first quarter, or about 4.5 per week. That number was 30 in Q4 2020, and just 21 in Q1 2020.

The first quarter’s 57 mega-deals were worth a huge 69% of total venture capital in the fintech space during the quarter. Don’t be shocked by that figure; a single mega-round can add up to the value of 50 seed deals pretty easily.

The huge results should also not be a complete surprise, CapitalG’s Wedler told TechCrunch in an email, as “the reality is that fintech has been a hot category for years.” What could be driving the recent acceleration in capital disbursement into financial technology startups? Wedler mused it’s a combination of “the ubiquity of smartphones and the modern internet, the development of modern cloud technology, and advancements in APIs and modular services.”

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://techcrunch.com/2021/04/29/fintech-startups-set-vc-records-as-the-2021-fundraising-market-continues-to-impress/

Crowdfunding

Cash Still King? UK FCA Says 5 Million Still Count on Cash for Majority of Transactions

Avatar

Published

on

In a digital world, physical cash still counts. A lot, according to UK regulators.

A speech delivered today by Sheldon Mills, Executive Director for Consumers and Competition at the Financial Conduct Authority (FCA), he revealed that 5 million individuals still count on the pound sterling for the majority of their purchases. Additionally, 750,000 or one in seven adults struggled with cash point and bank branch closures during the COVID-19 health crisis. As one may anticipate, the majority of these individuals are elderly, or perhaps small businesses.

The Death of the Bank Branch? Not So Fast.

Mills says that the transition from face-to-face services to online or telephone will take time. There are times when an in-person meeting is easier, it seems.

Mills adds:

“Based on our evidence, we believe that access to cash across the UK is generally good for most people. 95% can access cash in urban areas within 650 metres and in rural areas within 3.5 km. Only around 150,000 people live more than around 5 km away from their nearest access point. And of course, in addition to bank branches, Post Office counter services and ATMs provide a significant and important part of the existing geographic coverage. The Post Office has national access criteria requiring that 99% of the population must live in areas within 3 miles [or 5 km] of their nearest Post Office, and 90% within 1 mile [1.6 km].”

While cash use is declining due to the ubiquitous nature of digital alternatives, cash continues to be needed. Perhaps, cash is no longer king but digital is not quite satisfying all the requirements of the population. UK firms are responsible for making sure that when a branch or ATM closes, there are alternatives in the area.

An updated review of the UK’s cash infrastructure is expected to be released this summer.

A joint statement by the FCA and PSR states that cash must remain available to the masses:

“The overall decline in the use of cash makes it more expensive to maintain the existing infrastructure that supports it. However, as we move out of the pandemic, cash continues to serve a socially useful purpose for many communities. Following a fall in ATM withdrawals of 40% year-on-year across 2020, withdrawals have started to increase again since restrictions have begun to ease. Although our data shows that most people can access cash easily now, there is a need to maintain access to cash and banking services for those that still need it, particularly vulnerable consumers. At the same time, a critical part of maintaining this access will be supporting others that can to transition to digital and other alternative ways of banking and making payments.”

Sheldons states:

“… the nature of cash use and everyday banking is changing, and we should acknowledge that and help people to transition where they are able to. However, we must also all work together to protect the ability of consumers to access cash and banking services in ways that meet their needs.”

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.crowdfundinsider.com/2021/05/175324-cash-still-king-uk-fca-says-5-million-still-count-on-cash-for-majority-of-transactions/

Continue Reading

Crowdfunding

MoneyLion Joins Forces With NFP to Provide Nationwide Insurance & Financial Wellness Offerings to Members

Avatar

Published

on

MoneyLion, a U.S.-based consumer digital finance platform, announced on Thursday it has teamed up with insurance broker NFP to provide its members with direct access to insurance and financial wellness offerings. MoneyLion reported that the offerings are to help its members support their financial journeys. According to MoneyLion, the partnership allows members to shop for and buy insurance products and solutions through the MoneyLion all-in-one financial platform.

MoneyLion also reported the launch of MoneyLion Marketplace, a platform that matches MoneyLion members with category-leading brands, offers, and value-add resources that are tailored to their personal needs. Dee Choubey, MoneyLion Co-Founder and CEO, shared more details about the partnership and marketplace launch by stating:

“Knowing what type and how much insurance to buy can be a daunting experience for many people, and yet it is a critical foundation for any financial plan. As a leader in digital technology, insurance underwriting and customer service, Nationwide is a natural fit to help our members evaluate the insurance options that are right for them.”

Brett Woodward, Managing Director of NFP Personal Risk, then added:

“Through this partnership, we’ll be able to leverage the MoneyLion Marketplace platform to connect the needs of clients with a range of solutions through an easy-to-use interface. This is a great combination of expertise, innovation and collaboration that delivers meaningful value to MoneyLion members.”

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.crowdfundinsider.com/2021/05/175322-moneylion-joins-forces-with-nfp-to-provide-nationwide-insurance-financial-wellness-offerings-to-members/

Continue Reading

Crowdfunding

U.S.-Based E-Commerce Platform Our Mayberry Secures $1.2 Million Through Convertible Note Seed Round

Avatar

Published

on

Our Mayberry, a U.S.-based e-commerce platform, announced on Thursday it raised $1.2 million through its convertible note seed round. According to Our Mayberry, investment groups from medical services and restaurant industries led the round. Founded in 2019, Our Mayberry describes itself as an online e-commerce platform that connects businesses and nonprofits to create mutually beneficial marketplaces where consumers can make purchases that support the causes they champion.

“A platform where causes and business partner to do great things!”

While sharing more details about the platform, Our Mayberry CEO, Shawn Tacey, stated:

“Our Mayberry gives businesses the ability to both scale and do good unlike any other platform or service. We process hundreds of thousands of dollars in transactions each month for service businesses like law firms, medical services companies and architects.  Other values-driven platforms simply don’t include these types of businesses, but we do.”

Our Mayberry also reported that it is currently operating in 6 states, and has generated growing interest from national nonprofits, including Rotary International and Habitat for Humanity Tacey went on to add:

“Our Mayberry’s model represents the next step in the evolution of both business marketing and fundraising. We’re focused on weaving this new system of commerce into everyday life, and we believe this will go a long way in helping to rebuild and strengthen our communities.”

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.crowdfundinsider.com/2021/05/175321-u-s-based-e-commerce-platform-our-mayberry-secures-1-million-through-convertible-note-seed-round/

Continue Reading

Blockchain

BRD’s Blockset unveils its white-label cryptocurrency wallet for banks and other enterprise clients

Avatar

Published

on

Blockset, the blockchain infrastructure platform for enterprises by BRD, announced early access to its Wallet-as-a-Service today. The white-label solution gives clients, like financial institutions, the ability to launch wallets that have the same features as BRD’s own mobile cryptocurrency wallet, which now has about 7 million users with over $20 billion assets under protection.

Blockset’s clients include some of the largest ATM networks and Japanese investment bank (and BRD investor) SBI Holdings, CoinFlip, Welthee, CoinSwitch, Coinsquare and Wyre. BRD’s other investors include Ripple and it has raised $56 million in funding so far.

One of Blockset’s selling points is access to real-time data about several kinds of cryptocurrencies. This not only allows users to see how their assets are performing, but also enables institutions to perform compliance tasks, fraud detection, anti-money laundering and other important services. Blockset also claims that its multi-chain API has up to 99.999% uptime.

The platform currently supports Bitcoin, Ethereum, Ripple, Tezos, Hedera, Bitcoin Cash and Bitcoin SV, and will add more chains based on customer demand.

Blockset already offered a white-label solution called WalletKit, before launching its current Wallet-as-a-Service with more features. BRD co-founder and CEO Adam Traidman compares its Wallet-as-a-Service to Google Maps, because both aggregate large amounts of constantly-changing data and can connect to other apps, while remaining user-friendly.

“The concept is really a result of learnings from working with our customers, tier one financial institutions, who need a couple things,” Traidman told TechCrunch. “Generally they want to custody crypto on behalf of their customers. For example, if you’re running an ETF, like a Bitcoin ETF, or if you’re offering customers buying and selling, you need a way to store the crypto, and you need a way to access the blockchain.”

“The Wallet-as-a-Service is the nomenclature we use to talk about the challenge that customers are facing, whereby blockchain is really complex,” he added. “There are three V’s that I talk about: variety, a lot of velocity because there’s a lot of transactions per second, and volume because there’s a lot of total aggregate data.”

Blockset also enables clients to add features like trading crypto or fiat or lending Bitcoin or Stablecoins to take advantage of high interest rates. Enterprises can develop and integrate their own solutions or work with Blockset’s partners.

Other companies that offer enterprise blockchain infrastructure include Bison Trails, which was recently acquired by Coinbase, and Galaxy Digital.

Blockset differentiates by focusing on real-time data. It looks at a smaller number of mainstream blockchains in order to ensure depth of information and speed.

“If you’re a financial institution, you can’t accept anything other than instant, accurate and highly-scalable kinds of data. Right down to the millisecond of latency is really important because it can give traders an advantage,” said Traidman.

In a press statement, Wyre chief executive officer Ioannis Giannaros said “Blockset is the clear industry leader in offering enterprise-grade SLAs [service-level agreements] that we require to guarantee high scalability, uptime and data integrity across multiple blockchains.”

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://techcrunch.com/2021/05/13/brds-blockset-unveils-its-white-label-cryptocurrency-wallet-for-banks-and-other-enterprise-clients/

Continue Reading
Aviation5 days ago

JetBlue Hits Back At Eastern Airlines On Ecuador Flights

Blockchain5 days ago

“Privacy is a ‘Privilege’ that Users Ought to Cherish”: Elena Nadoliksi

AI2 days ago

Build a cognitive search and a health knowledge graph using AWS AI services

Blockchain2 days ago

Meme Coins Craze Attracting Money Behind Fall of Bitcoin

Energy3 days ago

ONE Gas to Participate in American Gas Association Financial Forum

Blockchain17 hours ago

Shiba Inu: Know How to Buy the New Dogecoin Rival

SaaS4 days ago

Fintech3 days ago

Credit Karma Launches Instant Karma Rewards

Blockchain5 days ago

Opimas estimates that over US$190 billion worth of Bitcoin is currently at risk due to subpar safekeeping

Esports3 days ago

Pokémon Go Special Weekend announced, features global partners like Verizon, 7-Eleven Mexico, and Yoshinoya

SaaS4 days ago

Blockchain4 days ago

Yieldly announces IDO

Blockchain2 days ago

Sentiment Flippening: Why This Bitcoin Expert Doesn’t Own Ethereum

Esports2 days ago

Valve launches Supporters Clubs, allows fans to directly support Dota Pro Circuit teams

SaaS4 days ago

Esports4 days ago

5 Best Mid Laners in League of Legends Patch 11.10

Cyber Security3 days ago

Top Tips On Why And How To Get A Cyber Security Degree ?

Business Insider2 days ago

Bella Aurora launches its first treatment for white patches on the skin

Esports1 day ago

‘Destroy Sandcastles’ in Fortnite Locations Explained

Blockchain4 days ago

Decentraland Price Prediction 2021-2025: MANA $25 by the End of 2025

Trending