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What do these 36 FinTech rounds raised in the last week reveal about the industry

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What do these 36 FinTech rounds raised in the last week reveal about the industry
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Companies operating in the WealthTech, cybersecurity, RegTech, anti-fraud, PropTech, credit, InsurTech and loan segments of the FinTech industry raised money over the course of last week.

Of the 36 rounds FinTech Global reported on over the past seven days, the ones in the WealthTech and cybersecurity segment stood out the most.

Starting with the WealthTech sector; last week saw businesses like Northmill, Fair, Capitalize, Monkey, Globacap, tickr and Mymonii top up their coffers.

These rounds comes after the global WealthTech sector recorded another record year in 2020 in terms of investment raised, despite the coronavirus wreaking havoc across markets worldwide.

WealthTech companies raised over $9.2bn last year, a 9.6% year-on-year growth. At the same time deal activity also increased in 2020 with 443 deals being completed compared to 388 transaction in 2019, according to FinTech Global’s research.

That is up considerably from 2016 when the global WealthTech sector raised $2.8bn across 314 rounds in total.

Global WealthTech 2020 99 696x566 1Tellingly, while the number of deals have only increased by 129 over that period, the size of these deals have grown considerably. Investment deals worth over $50m represented 71.8% of the total investment in 2020.

That being said, more than $2.6bn was invested in 2020 in funding rounds under $50m as WealthTech innovation spread to developing markets. Part of the reason behind the smaller segment of the industry in developing countries still attracting investment rounds is due to the pandemic having increased the need for digital and banking services in across the world.

Neobanks Northmill and Fair raising money last week is also very telling of the WealthTech sector, given that challenger banks keep leading investment rounds in the industry.

In 2020, half of the top ten biggest WealthTech rounds were raised in the digital banking sector.

Global WealthTech 2020 99 696x566 2Looking at the cybersecurity space, ventures like CYE, Armis and Cavelo secured funding in the past few weeks.

Overall, the cybersecurity space has flourished during the coronavirus pandemic as bad actors have increased their digital assaults and businesses have had to introduce new security infrastructures to accommodate remote workers.

However, there were signs that the cybersecurity boom may be cooling down. Despite the rising threats caused by Covid-19, investment into the cybersecurity sector only reached $700m in the second quarter of 2020, representing a decline of over 60% from the first three months of last year, according to FinTech Global’s research.

Global CyberTech H12020 59That being said, others believe that the sector is expected to grow further over the next few years. In fact, the global industrial cybersecurity market size is expected to reach $22.8bn by 2026, according to recent Reportlinker.com research.

Similarly, recent research suggested that a third of US-based bankers believe cybersecurity will be one of their top concerns in 2021 as they continue to digitalise their offering.

With that being out of the way, let’s look closer at the 36 FinTech funding rounds we reported on in the last week.

Fraction Technologies raises $226.6m in new investment round

Canadian FinTech Fraction Technologies has closed a $226.6m funding round. The round consisted of a combination of equity and debt financing. Impression Ventures, Primetime Partners, Global Founders Capital, and Panache Ventures, among other investors backed the round. Fraction will use the cash injection to officially launch across Canada, expand its team, build out its platform and to prepare for its launch in the US.

Fraction offers a digital platform that provides socially conscious financial solutions. It claims that its flagship product, the Fraction Appreciation Mortgage is the first of its kind in North America. The product is said to empower homeowners to access the existing value locked in their homes to increase their income or cover unexpected expenses.

Beyond Finance picks up $110m in new senior credit facility

Debt resolution FinTech Beyond Finance has secured a $110m senior credit facility from Comvest Credit Partners. Houston-based Beyond Finance will use the money to refinance existing debt and fund ongoing working capital needs. Houston-based Beyond Finance was founded in 2016 and will use the cash injection to refinance existing debt and fund ongoing working capital needs.

Human Interest closes $105m Series C funding round

Human Interest closes Series C round at $105m after new funding from Glynn Capital, an existing investor. New investor NewView Capital also participated in the round that brings the total capital injected into Human Interest to $136.7m. The SMB 401(k) provider had previously secured $50m to the Series C round in 2020 and the new raise saw it add a $55m capstone to the round.

Armis secures strategic investment

Device security platform Armis has reached a $2bn valuation after a strategic investment from a group of backers. Brookfield Asset Management served as the lead investor, with commitments also coming from previous backers Insight Partners, CapitalG, Alphabet’s independent growth fund and Georgian.

As part of the deal, Brookfield will provide the opportunity to bring Armis’s device security services to its businesses. Armis will also use the funds to fuel the release of new products and expand its marketing and sales teams.

CYE secures $100m investment

Israel-based cybersecurity company CYE has secured a $100m growth investment from private equity firm EQT. Following the close of the deal, CYE founder and CEO Reuven Aronashvili will continue to hold a significant share in the RegTech company.

With the fresh capital, CYE hopes to continue its growth plans and accelerate its go-to-market and product investments. CYE empowers companies to take control of their cybersecurity. Its platform provides an automated and continuous approach to assessments, with an optimised risk prioritisation and mitigation plans.

Built Technologies nets $88m in its Series C round

Built Technologies has netted $88m in its Series C round to support the expansion of its product suite. Addition served as the lead investor, with contributions also coming from return investors Canapi Ventures Index Ventures, Goldman Sachs Investment Partners, Nyca Partners, Fifth Wall Ventures and Nine Four Ventures.

Other backers included Jordan Park, Renegade Partners, Green Point Partners, the Witkoff Group. The capital injection will be used to expand is Built for Lending product suite and accelerate its go-to-market efforts to serve more bank and non-bank construction lenders across the US and Canada. Furthermore, the company will continue to serve its customers.

NYMBUS scores $53m in its funding round

NYMBUS, which develops banking technology, has raised $53m in its funding round to support its rising demand. The round was led by existing NYMBUS investor Insight Partners. Funds will be used to expand access to its GROW model, which creates new digital revenue streams for banks and credit unions.

Symend extends its Series B round with a fresh $43m investment

Symend, which leverages behavioural science to encourage customers to resolve past due bills, has netted an additional $43m in Series B funding.

This new capital injection was led by Inovia Capital, with commitments also coming from a consortium of unnamed backers. Symend is a digital engagement platform that leverages data-driven insights and nudges to empower customers to pay their due bills.

Northmill raises $30.1m investment round

Swedish challenger bank Northmill has secured $30.1m in a new funding round led by investor M2 Asset Management. Institutional investor and asset management firm Coeli also backed the raise. The Swedish Financial Supervisory Authority granted Northmill a Swedish banking licence in September 2019. Since then the FinTech startup has been busy launching its own debit cardsavings accounts and investing in Zendesk’s cloud-based customer relationship management platform. Northmill will use the new funding to expand further into Norway.

French Libeo raises €20m funding round

Invoice management company Libeo has raised €20m in funding from DST Global, Serena, LocalGlobe and Breega as well as a smattering of angel investors from FinTechs like Transferwise, iZettle, Klarna, Farfetch and Criteo. The funding round comes less than a year after France-based Libeo raised a €4m funding round led by LocalGlobe. It is the third cash injection the company has received since launching in 2019.

Neobank Fair secures $20m investment

Challenger bank Fair has closed a $20m investment round and announced that it will open early bird membership enrolment in March as it eyes April launch. Inspired by his own experience of struggling financially when he emigrated from India to the US, CEO and founder Khalid Parekh has designed Fair to make it easier for newly arrived expats to open bank accounts and access interest-free loans.

Solidatus nets £14m in its Series A round

Solidatus, a data lineage platform aimed at helping firms meet regulatory compliance, has scored £14m in its Series A funding round. AlbionVC led the round, with participation also coming from HSBC Ventures and Citi.

The company will use the funds to accelerate its global expansion efforts, with the aim of boosting its presence in the US, Europe and Asia. Funds will also be used to offer data management capabilities to new verticals.

Trade Ledger closes its Series A round on £13.5m

Trade Ledger, a lending-as-a-service platform, has closed its Series A round on £13.5m to help it triple its customer base. Point72 Ventures led the round, with commitments also coming from Foundation Capital, Hambro Perks and DocuSign founder Court Lorenzini.

This fresh equity infusion will enable the company to bolster its sales, marketing and customer delivery teams. Furthermore, it hopes the capital will enable it to triple its customer base by the end of the year.

Mesh Payments said to raise $13m in funding round

Mesh Payments, which claims to be transforming corporate payments, has reportedly scored $13m in funding. The equity infusion was led by TLV Partners, with contributions also coming from Meron Capital and R-Squared Ventures. A handful of angel investors also contributed to the round. Mesh will use the money to bolster its sales and marketing efforts, and help to form additional strategic partnerships.

Capitalize has netted $12.5m in a Series A funding round

Retirement asset transfer startup Capitalize has closed a $12.5m Series A investment round. Canapi Ventures led the round with participation from Capitalize’s existing investors, including Bling Capital, Greycroft, RRE Ventures and Walkabout Ventures. Capitalize will use the new cash injection to fuel continued growth, support strategic investment in talent and enable Capitalize to add new services as it helps consumers save for retirement nationwide.

Coterie scores $11.5m round

Coterie, which aims to simplify small business insurance, has scored an additional $11.5m in its Series A round. The round was led by Intact Ventures, with additional contributions coming from Alpha Edison, Lackawanna Insurance Group, a subsidiary of Group1001, RPM Ventures, Allos Ventures and several others. Coterie previously raised $8.5m in its initial Series A round back in March 2020. The company has raised a total of $25m in equity.

SoLo Funds secures $10m in investment

P2P lending platform SoLo Funds has reportedly collected $10m to support the expansion of its presence in the US. The fresh equity was supplied by ACME Capital, Impact America Fund, Techstars, Endeavor Catalyst and CEAS Investments. Other backers included existing stakeholders West Ventures, TransferWise co-founder and CEO Taavet Hinrikus and Google Startups head Jewel Burks Solomon.

Eduvanz collects $10m debt funding

India-based FinTech platform Eduvanz has reportedly netted $10m in debt funding to support its rapid growth over the past year. The funds were supplied by InCred Financial Services, Vivriti Capital and Northern Arc Capital. Eduvanz claims that between April 2020 and December 2020, it managed to grow its customer base by four-times and its monthly loans distribution by three-times. The FinTech leverages technology to help students get credit scores based on their socio-economic and demographic backgrounds.

Globacap collects $9m Series A

Globacap, which claims to be transforming capital markets, has secured an additional $9m for its Series A round. The capital injection was led by the Johannesburg Stock Exchange (JSE), with commitments also coming from Moore Strategic Ventures. These funds will help the FinTech to distribute its platform.

Globacap has also formed a commercial agreement with the JSE to launch two private placement platforms in Africa later this year. The first of these will digitise investment into infrastructure projects. Its second platform will digitise investment into SMEs.

Scalarr said to collect $7.5m in its Series A round

Anti-fraud software developer Scalarr is said to have raised $7.5m in a Series A funding round. European Bank of Reconstruction and Development served as the lead investor for the round. Other commitments came from TMT Investments, OTB Ventures and Speedinvest. Funds from the round will be used to grow its presence in Asia, and to develop its product.

TomoCredit has secured $7m in a new financing round

US-based credit card company TomoCredit has secured a $7m cash injection.
KB Investment, Barclays, Knollwood Investment Advisory, BAM Ventures, Passport Capital, Ulu Ventures and Strong Ventures backed the raise.

Monkey said to close $6m Series A

Receivables marketplace Monkey has reportedly collected $6m in its Series A funding to help double its team. The round was co-led by Quona Capital and Kinea Ventures. With this capital injection, the FinTech hopes to double its team to 40 members and expand across Latin America. Funds will also be used to improve user experience and launch new products, including a credit card marketplace.

HUBX raises $5.5m in new funding round

Private capital raising platform HUBX has secured $5.5m in new funding. The London-based venture was launched in 2015 and will use the new cash injection to meet the rising demand for its services caused by the pandemic. Basinghall Partners led the raise that also saw participation from Barclays, ELITE and individual investors.

PayZen comes out of stealth with more than $5m in equity funding

PayZen, which creates individualised payment plans, has come out of stealth alongside a $5m seed investment. The company was incubated with Viola Ventures in 2019, and has received investments from Picus Capital, TW039 Ventures and others.

Headquartered in San Francisco, the company pays hospitals upfront for invoices and gives the patient a zero-interest payment plan. Patients are not charged fees and can change their payment schedule at any time.

PasarPolis said to raise $5m round

Indonesian InsurTech startup PasarPolis has reportedly raised $5m in funding from the International Finance Corporation. The investment will also enable the venture to collaborate on initiatives designed to make insurance available to all. One of these initiatives will be affordable micro-insurance. Plans for the capital include expanding the reach of its products and insurance literacy in Asia, with a focus on Vietnam and Thailand.

Ushur extends its oversubscribed Series B round with fresh $5m investment

Ushur, which provides insurance firms with automation capabilities, has closed an additional $5m to its Series B funding round. The InsurTech previously closed the oversubscribed Series B on $25m in November 2020. Aflac Ventures and Iron Pillar were among the investors backing the raise. With this equity injection, the company hopes to continue grow its traction in the market. Ushur leverages natural language processing and no-code automation to provide digital first customer experience solutions for industries, including insurance, finance and healthcare.

Anecdotes secures $5m in new funding round

Data compliance startup Anecdotes has picked up $5m in new funding in an investment round co-led by Aleph and Glilot Capital. Anecdotes will use the money to accelerate the adoption of its platform.

Ledn scores $2.7m in funding

Digital asset savings and credit platform Ledn has scored $2.7m in fresh funding to support its growth. White Star Capital led the round with its Digital Asset Fund. Other contributions came from Coinbase Ventures, Global Founders Capital, CMT Digital, Kingsway and Darrow Holdings. Funds will be used to further its growth and enhance its transparency. Ledn claims it issued Canada’s first bitcoin-backed loan in 2018. Since then, its services has grown to support thousands of clients in more than 100 countries.

tickr said to raise £2.5m in funding

tickr, which enables consumers to invest into positive social and environmental change, has reportedly raised £2.5m in a funding round. UK venture capital firm Ada Ventures supplied the capital. This capital injection will enable the company to bolster its team, accelerate its product roadmap and further its customer growth. tickr is an investment platform that enables consumers to grow their money while backing companies that have positive social and environmental change.

Marble closes seed round on $2.5m

Marble, a digital wallet and loyalty platform for insurance, has closed its seed round on $2.5m. The company’s investors include IA Capital, MS&AD Ventures, Reciprocal Ventures, Fintech Ventures Fund, The Takoma Group and HU Investments.

This equity will be used to increase the company’s team size, form new partner integrations and generally helping consumers “feel good about their insurance.”

ProgCap said to raise around $1.37m in funding

Business lender ProgCap has reportedly raised $1.37m in a funding round, which was led by Stride Ventures. The India-based FinTech hopes to use the funds to increase its assets under management and adoption in the market. Furthermore, the company will bolster relationships with banks and corporations. ProgCap aims to helps micro and small enterprises access customised financing solutions and digitise their supply chains.

Cavelo closes its pre-seed round on $1m

Data discovery and cybersecurity platform Cavelo has closed its pre-seed round on $1m to support its growing demand in North America. The round was led by MaRS Investment Accelerator, with commitments also coming from unnamed strategic angels.

Cavelo will use the cash to source talent and increase product development to meet the rising demand in North America. Cavelo helps businesses to discover, classify, track and manage sensitive data in alignment to industry and regulatory reporting requirements.

Mymonii secures $820,000 in new round

Danish FinTech Mymonii has secured $820,000 in a new investment round. The Copenhagen-based venture is specialising in building consumer financial mobile apps for families. A smattering of local angel investors from Denmark, including Jakob Bendsen, Morten Møller Holst, Sune Alstrup, Louise Ertman Baunsgaard and Susanne Brønnum. The rest is a matching loan from Vækstfonden.

UNIPaaS closes its first external batch of funding

UNIPaaS provides payment services to digital marketplaces. It has closed its first external funding round. TPY Capital served as the lead investor, with commitments also coming from FJ Labs, NextDoor CEO Sarah Friar, Plaid COO Eric Sager, Vouch Insurance CEO Sam Hodges, angel investor Gokul Rajaram and a number of other angel backers. UNIPaaS will use capital from the round to deepen its product offering.

Ramp secures debt facility

Ramp has received a debt facility from Goldman Sachs to further the growth of its corporate credit card. The FinTech claims to be the fastest corporate card in history to reach $100m in transaction volume. It also claims it grew monthly transaction volume significantly year-over-year.

Arkose Labs has secured investment from the Sony Innovation Fund

Online fraud and abuse prevention company Arkose Labs has received an investment from the Sony Innovation Fund, by Innovation Growth Ventures. This investment comes after Arkose stated how the gaming industry is benefitting from its partnership with major gaming companies Microsoft, Sony Interactive Entertainment, Roblox, EA, Minecraft and a number of other gaming companies. Its technology helps to combat account takeovers and eliminate the creation of fake accounts. Its technology provides helps companies to address abuse of virtual economies, bot-driven in-game cheating and bonus abuse.

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