Hello Fintech Friends,
The headline for today's newsletter is a signal that fintech lending is alive and growing in a post-zero rate environment. Read on below for the story.
I was asked recently for thoughts on what the recent election might mean for interest rates and fintech, and I'd be curious to hear from other readers as well. Some very cursory thoughts:
Very reduced SEC enforcement against crypto companies.
Fewer FTC actions against mergers, leading to more late-stage M&A.
A reopening of the IPO window particularly for late-stage crypto or crypto-adjacent companies like Circle, Kraken, and Chainalysis, which may previously have dealt with legal headwinds.
More lax consumer protection enforcement leading to a higher proliferation of financial scams (particularly online and using AI).
Tax cuts and tariffs driving inflationary pressure, potentially elongating a higher Federal Reserve rate.
Agree? Disagree? Let me know.
Today's newsletter is brought to you in partnership with our friends at North, who provider some of the highest approval rates and lowest processing rates in the industry for all business types.
Please find another week of fintech financing events below.
(PS: Have feedback for us? 👍👎 Let us know!)
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📊 Stats of the Week
The team at @alliancedao always have great DeFi surveys and data, and I wanted to highlight their most recent trends report.
I found these three insights to be the most interesting:
1. The US' share of DeFi developers continues to shrink relative to Asia and Africa. I'm sure… pic.twitter.com/040CRNVKNl— Nik (@NikMilanovic) November 1, 2024
💸 Venture Financing
Fiserv & Melio: Fiserv led a $150 million funding round for Melio, aiming to enhance its B2B payments platform for small businesses, focusing on automation and efficiency improvements in handling business payments.
Fingercheck: Edison Partners led a $115 million investment in Fingercheck, a workforce management platform for deskless employees. The funds will support product enhancement and business expansion under new CEO Dan Kazan.
Kaizen: Kaizen raised $42 million for North American expansion, aimed at strengthening compliance tech solutions in finance.
Recognise Bank: UK-based Recognise Bank secured a $25 million investment amid a leadership transition, focusing on growth in the SME lending market.
Ellipsis Labs: Ellipsis Labs raised $20 million to launch Atlas, a verifiable finance blockchain that enhances security and transparency in DeFi.
Fractional: Real estate coinvesting and co-ownership startup Fractional raised a $15 million Series A.
Marosa, a Spanish fintech specializing in VAT compliance and e-invoicing software, raised €12 million from Aquiline. This funding, Marosa's first, will aid in expanding its VAT automation and compliance platform,
Fundcraft: Luxembourg’s Fundcraft secured a $6 million Series A to digitize and streamline fund operations for investment firms.
JustFund: JustFund, an Australian divorce lending startup raised $5.7 million in seed funding for a platform offering specialized loans for divorce-related financial needs.
VibePay: VibePay raised an additional £5 million and hired a former Klarna executive to expand its social payment offerings.
Further: A DC-based fintech startup that aims to simplify the process for buyers with better financial planning tools raised a $4.1 million pre-seed.
LendAPI: LendAPI, a platform to enable fintechs, banks, and financial institutions to launch products in hours, raised a $3.2 million seed round.
Lerian: Brazilian core banking solutions provider Lerian raised R$18 million ($3.1 million).
Akeyless: Deutsche Bank invested in Akeyless, an ID security firm focusing on secure access management solutions for enterprises.
Customs Windows: Irish regtech startup Customs Windows closed an $800,000 seed round to enhance compliance solutions for international trade.
Kalshi: Prediction market Kalshi secured “tens of millions” in VC loans and is now eyeing a $50 million equity round amid rising interest in election betting.
Zodia: Zodia, Standard Chartered’s crypto custody arm, is in talks to raise $50 million to expand its institutional crypto services.
9Fin: Investment firm Mubadala is looking to invest in UK corporate debt research start-up 9fin, valuing the market information provider at about $500 million.
💵 Debt Financing
Sunbit, a startup that offers consumer loans ranging from $50 to $20,000 for in-person payments at places like car dealerships, dentist offices and eyewear shops, secured $355 million in new debt led by JPMorgan Chase, Mizuho Bank and private credit firm Waterfall Asset Management.
📺
Sponsored Content
If you’re looking for the easiest enterprise-level payment company to dobusiness with, just go North. Since 1992, payment technology leader Northhas been helping complex organizations simplify their omnichannelpayments.. All while helping them run their back offices more efficiently andprofitably than ever before. Ready to take your organization straight to thetop? Go North.
Want to sponsor a newsletter? See our sponsorship information here.
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