Startups seem to jump from lofty ideas to global megastars overnight. In order to keep you from being left in the dust, we’ve compiled a list of the most funded new FinTech startups. Focusing on companies formed in 2014 and 2015, we can take an inside look into what will be helping to evolve the sector next.
Get ready, because this is going to be fun:
More than a loan ($12.5M)
The Texas-based “collaborate lender” has raised $12.5 million, including $6 million in August. They’ve already begun making a name for themselves, and have a wide breadth of investors, including Blumberg Capital and FLOODGATE. They work by utilizing both their own network and the customer’s. In other words, they expect your family and friends to make sure you pay back your loan. This model of lending will create a highly unique situation that is just as likely to succeed as inspire a dystopian novel.
They market specifically to business owners. When taking out a loan, the borrower’s friends, family and associates will contribute 25% of the loan, and Able will do the rest. Able founders expect the responsibility of borrowers to repay friends will not only ensure that loans are paid faster, but they will achieve better rates and happier overall results. In a recent article we talked about the need for FinTech to integrate social interactions and relationships. Able is one of the many companies realizing that money is, in fact, social. This may help usher in a new, more interactive kind of financing.
Save money by analyzing the details ($10.2M)
Grouplend raised 10.2 million in August, alone, with the goal of bringing good loans to middle-class Canadians. They use new softwares and powerful analytics to cut out the typical costly overheads. Unlike traditional banks, they rely heavily on technology and its capabilities. The company was launched a year ago, and is already taking huge strides towards success.
It’s worth noting that their funding comes primarily from Markus Frind, founder of PlentyOfFish. Frind called Grouplend “one of the most promising and innovative startups in Canada.” Considering that PlentyOfFish recently sold for $575 Million, we’re just going to have to trust him on this one. While Grouplend is hardly the first of its kind, it has been quick to move and has plenty of users…Why? It may be their real commitment to low rates. It seems, after surpassing $30M in loans, Grouplend actually went back and reduced costs, actually passing savings along to their customers.
The first plaintiff marketplace ($5.25M)
The creators of Mighty have certainly found a niche. Mighty is all about getting money to unfortunate individuals bombarded with legal fees. No matter how strong a case may be, it’s incredibly tough for “the little guy” to emerge victorious from a court room. Time-consuming and frustrating, the justice system doesn’t always play fair. By connecting those awaiting settlement with the money they need to keep living their life, everyone wins.
The noble idea is incredibly practical, given how stressful (and sometimes life ruining) legal fees can be. Plaintiffs should never accept lowball settlements just because the fees are too high. Mighty works only with clients who are already represented by an attorney, and the loan is intended only for basic living expenses. Their investors come from an array backgrounds, including Tribeca Venture Partners and FinTech Collective.
It’s hard to disapprove of this startup, especially when they only collect money after you win your legal battle.
“If you win, you pay the investor back plus a return. If you don’t, you keep their investment.”
Risk management for P2P credit ($8.5M)
PeerIQ is all about credit risk analytics, and helping investors asses loans and performance. Using industry data from top P2P platforms, they help investors make better decisions, and become more efficient. Based in NY, they’ve raised a total of $8.5 million largely from Wall Street names, including John Mack.
The growing popularity in P2P lending is really hitting wall street, and this startup is one of many being pushed and funded by big names. As described by Andy Lam, Managing Partner at Uprising, what sets them apart is their dedication to “technical depth” and “market sophistication.”
“By addressing the investment requirements for many large lenders, PeerIQ will enable efficient capital to enter the sector, create new opportunities for P2P platforms, and generate substantial impact by helping more borrowers achieve their financial goals.”
Why let old guys have all the fun? ($1.5M)
Stash was founded in February of this year and in August, they quickly secured $1.5M in funding. What is it that makes the investment advisor so intriguing? Is it their curated investments? The support and continual advice? Maybe it’s the tagline, “Start with $5,” and their incredibly small $1/month fee. The personable brand is all about you, average person who wants to invest but doesn’t know where to begin.
Stash will succeed because it understands exactly what people these days want: everything, and they want it cheap. Stash wants to inspire, teach, and advise customers on their investments, without charging commissions or secret fees for moving money in-and-out of accounts. They treat customers as individuals, asking users to invest in ways that reflect their personal beliefs. Stash will be launching soon, and is currently offering Early Access.
Know your customer ($5.3M)
The KYC problem revolves around “knowing your customer.” It’s the process of verifying a client’s identity, and is sure to be a big question as FinTech continues to boom and evolve. Trunomi provides the software that let’s users manage personal information or documents, and financial institutions deal with on-boarding and dealing with Personally Identifiable Information (Pii). Trunomi boasts numerous different outlets for their clients: TruHub helps reduce regulatory risks, and improve reporting; TruMobile is designed to be highly customer friendly, and keep the user happy and engaged.
Trunomi addresses the growing need to not just integrate tech into the financial sector, but to make it user-friendly. Customers don’t just want FinTech, they want intuitive apps that are a genuine pleasure to use. With the $3M raised by Saturn in August, Trunomi will investigate how to unlock the full potential of data within their project, and make the game even more exciting for companies and users, alike.
All-in-one wealth management solution ($300k)
Wealth managers and companies have their own set of needs. BBVA Open Talent finalist and Microsoft BizSpark member, WealthArc was founded to not only combat analysis and security problems, but to make the whole process more automated. Their flagship product, the SaaS solution, uses AI to manage portfolios, and cyber-security measures to keep cloud data safe, all with the end goal of helping managers form real bonds of trust with clients.
Members of the team have all worked at top-tier firms, and experienced the ups and downs of tech in the financial sector first hand. With the help of Microsoft Azure Cloud, they bring higher computing potential to their customers. With the money raised by U.S.-based venture capital firm Novit LP, WealthArc has expanded their team and research, and intends to tackle problems of compliance requirements.
These startups don’t just highlight how FinTech is growing at a rapid pace, but how the entire sector is developing and evolving. With disruptions at every turn, it is easily one of the more exciting fields to follow. Keep your eyes peeled, because you’ll be seeing these startups again.
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The Brazilian Fintech Moment