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Tweet of the week 🦉🏆
2020 + 2021: Most “valuations relative to traction” were crazy
2022 + 2023: Bridge rounds helped startups grow into their valuations
Now + 2024: Most “valuations relative to traction” will be reasonable
But some startups can raise at high multiples due to momentum:🧵👇 pic.twitter.com/2i6khGOOUy— fintechjunkie (@fintechjunkie) December 2, 2023
I wanted to play a #fintech game of “wouldn’t it be nice” with regards to consumer behaviors.
Please share thoughts, be hyper-critical and add your own. Maybe this will inspire a crazy talented Founder to see a problem in a different light!
1) Wouldn’t it be nice if consumers… pic.twitter.com/CW7T9glvD4— fintechjunkie (@fintechjunkie) December 8, 2023
Funding 💸
Highlights below of deals since the last post in the fintech space across the UK & Europe. Deal data powered by Dealroom.
🇪🇺 Scalable Capital raised a €60m round from Balderton and HV Capital.
🇬🇧Payment provider Icon Solutions raised investment from Citi.
🇬🇧 Transaction enrichment provider Triple raised a $7.5m seed round led by TX Ventures.
🇬🇧 SMB lender Liberis raised $112m of debt financing from BCI Capital and HSBC.
🇬🇧 Savings and investment app Chip raised £5.1m via crowdfunding platform Crowdcube.
🌍 MENA revenue based financing lender Flow48 raised a $12.5m debt and $12.5m equity seed round from SpeedInvest, Daphni and more.
🌍 Consumer lender Best Egg secured a $150m credit facility from Cross River Bank.
🌍 Canapi Ventures closed a $750m fintech fund.
🌍 Canadian neobank Koho raised a C$86m Series D extension.
Challenger Banking 🚀
🇪🇺 Neobroker Trade Republic received a full banking licence as it looks to expand into savings and investments.
🇬🇧 Business neobank Allica Bank has partnered with Wise Platform to use its infrastructure for cross-border business payments.
🌍 B2B lender Capchase has launched a new invoice collection tool called Capchase Collect.
🌍 Spend management provider Navan has cut 5% of its staff.
🌍 Alternative investment platform Yieldstreet acquired real-estate investment platform Cadre.
🌍 Neobroker Public is launching fixed income trading powered by infrastructure provider Moment.
Digital Assets ₿
🇪🇺 Societe Generale has listed a euro stablecoin on exchange BitStamp.
🇪🇺 Robinhood has launched crypto trading for customers across the EU.
🇬🇧 UK lawmakers are seeking to have the holding limit on a digital £ lowered and to allow interest to be paid on holdings.
🇬🇧 Crypto.com received an EMI licence from the FCA.
🌍 Circle is partnering with Latam neobank Nubank to expand access to USDC.
🌍 Binance's new CEO has refused to identify were the company's headquarters are. It has also withdrawn its application for an investment management licence in Abu Dhabi.
🌍 Block is signing up users for a self-custody bitcoin wallet called Bitkey.
Traditional Banking 🏦
🇬🇧 Barclays is to shut another 18 branches in 2024.
🇬🇧 TrueLayer has signed Nordic neobank Lunar as a customer of its A2A solution.
🌍 Standard Chartered is enabling BNPL online and in-person for its cardholders in APAC.
🌍 RBC was fined $5.5m CAD for administrative violations of AML rules in Canada.
🌍 Commonwealth Bank of Australia is to work with Vodafone to tackle SMS scams and make proactive blocks on fraudulent payments.
🌍 The OCC has issued guidance warning US banks to ensure that BNPL products are offered in a "safe and sound" manner.
🌍 BlackRock is rolling out GenAI tools to its staff and customers.
Fintech Infrastructure 🚧
🇪🇺 A Court of Justice ruling may impact the data retention lengths of credit scoring companies, currently three years, but are contrary to GDPR.
🇬🇧 A2A solution Banked is to enter the US market next year.
🇬🇧 PWC has signed an implementation platform for Starling's BaaS solution Engine.
🌍 Treasury Prime is partnering with Effectiv to provide banks and fintechs with a solution to reduce fraudulent transactions and risk management.
Payments 💰
🇪🇺 The EU is focused on a digital euro, instant payments and cross-border payments for 2024.
🇪🇺 Adyen has been selected as the global acquiring partner for Klarna.
🇪🇺 B2B payment solution Mondu is partnering with payment infrastructure provider Mangopay to create a unique offering for marketplaces.
🇬🇧 SaaS company Endava will integrate with Paze, the new digital wallet from US banks.
🇬🇧 Samsung is partnering with Mastercard's Wallet Express program to improve take up for its mobile wallet.
🇬🇧 The British Retail Consortium's Annual Payment Survey found cash transactions increased from 15% to 19% in 2022.
🌍 Shift4 is to be the payment provider for the Baltimore Ravens ticketing and stadium.
🌍 Global payment solution Airwallex has used LLMs to reduce false positives in KYC by 50%.
🌍 Amazon is to drop Venmo as a payment method in January.
Regulatory Corner 🔎
🇬🇧 Banking regulators are proposing to bring oversight of third party technology firms that are relied upon by financial firms into their purview.
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Have a thought/question/comment about anything we covered?
Start a discussion in the comments section below!
Longer reads 📜
AI will revolutionise customer service in banking — Science Card
BaaS Fintechs Coming to Age to Fuel Integrated Finance Needs - Flagship Advisory
The state of the BaaS market - Hugo Hazon
The Token Layer Cake - Chuck Yu, Fintech Brain Food
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