welcome to interchangeIf you get this in your inbox thank you for signing up and trusting and voting. If you read this as a post on our site please sign up here You can receive it directly in the future. Each week we take a look at the hottest fintech news from the previous week. This includes everything from funding rounds to trends to analysis of specific spaces to hot takes on specific companies and phenomena. That’s my job. That way you can get the latest information. Mary Ann
Despite last year’s economic turmoil, many of us Sudden full implosion Coming of Silicon Valley Bank. We could guess that a high-profile financial institution was struggling, but we didn’t expect it to close so soon after announcing its predicament. The repercussions of this event are severe, far-reaching and potentially devastating for many, fearing they will be dramatic. Already businesses are concerned about running payroll, which could lead to unexpected closures and layoffs. As one VC put it, “It sucks.” We would like to extend our deepest sympathies to all those affected by the disaster.
Natasha Mascarenhas and I have spoken with several competitors in this space and, unsurprisingly, they see a significant increase in demand. You can read it all here. We also teamed up with other of her TC staff and spoke with a few founders who have bank accounts there to hear their perspectives.
Outside of TC’s multiple (and great reporting if I may add) stories on the topic bundled here, there are other chatter I’ve heard related to the news:
- A fintech investor told me he knew a single company that moved Over $80 million I left Silicon Valley Bank on Thursday.
- Rippling co-founder and CEO Parker Conrad announced on March 10th that murmured His company has historically relied on SVB for its payroll and other product payment rails, but in light of the news, it “quickly accelerated its planned switch to JPMorgan Chase. Later in the day, he added that his company was unable to process payroll for some company employees. apologized, future payrolls will be processed by JPMorgan Chase, but the payroll funds processed on that day’s check date “was withdrawn from the customer at the beginning of the week,” and the company “currently resides in the FDIC at the SVB I am currently stuck in ‘Trustee. “
- Unlike many other VCs encouraging companies to move money out of SVB, Ryan Falvey of fintech-focused Restive Ventures urged people to move money out of SVB. rice field. “calm down”
- Some people say, “bank run” Ultimately led to the demise of SVB.
- Brazilian Fintech Trace Finance Launches new checking account For startups in the wake of news.In an email, a spokesperson told me on Friday that the withdrawal balance was the total $200 million Starting with SVB through Trace Finance since the news broke on Thursday, $100 million has already been moved out of SVB and deposited into Trace Finance’s new checking account. New checking account customers include Rocket.chat, Mercado Bitcoin, Rentbrella, The Coffee, and Gringo.
Note: I had a completely different intro planned today based on a very interesting conversation with a neobank founder, but I had to jump to the implications of the Silicon Valley bank closure, so I decided to do another We’re going to save it in the days of the startup and venture world.
Image credit: twitter
weekly news
I conducted a survey of 7 fintech investors. Charles BirnbaumPartner, Bessemer Venture Partners; ochre ariaPartner, Menlo Ventures; Ansaf KareemVenture Partners, Lightspeed Venture Partners; Emaline Shawexecutive staff, Flourish Ventures; Michael Scidmorepartners and co-founders, Broadhaven Ventures; Ruth Fox BladerPartner, Anthemis; Miguel Almazaco-founder and general partner, Gilgamesh VenturesNot just because we did the research, TRUE I was impressed with how detailed and thoughtful their responses were. Spoiler alert: B2B payments and infrastructure remain brisk, and most investors expect to see more flat or declining rounds this year. Additionally, they were kind enough to share some of the advice they are offering to portfolio companies.
Technology and fintech stocks have seen the biggest losses, according to a recent report, despite a wide-ranging public market correction. Specifically, the Fintech Index, which tracks the performance of publicly traded financial technology companies, posted a staggering 72% decline in 2022. F Prime CapitalThe State of Fintech 2022 report. The F-Prime Fintech Index hit a peak of $1.3 trillion in late 2021 before falling to $397 billion by the end of 2022. Currently, Fintech indices are B2B SAAS, Payments, Banking, Wealth Management, Lending, Insurance and Proptech. I did a deep dive on this topic here.
Christine Hall reports: credit karma Net Worth is a new product that helps people discover, grow and protect their wealth. Kenneth Lin, founder and CEO of Credit Karma, said in an interview that the new feature will bring the 16-year-old company closer to an end-to-end personal finance management platform, while also offering debt, credit building and current account products. Said it would be. After going through his journey of establishing credit and checking his credit score, the Credit Karma member is now contemplating his next phase in life.
our follow up better dot com Last week’s news (collaboration with the brilliant Alex Wilhelm): Even if the Better.com SPAC combination is complete, the deal is mostly voided from a cash perspective.From our regulations SEC filing: “Approximately 92.6% of the Company’s Class A common stock has been redeemed, leaving approximately 7.4% of its Class A common stock outstanding. The SPAC’s IPO deadline is September 30th, but we’ll know by the summer if Better.com can go ahead with the deal. A source familiar with the company’s internal affairs told TechCrunch that it’s probably time to “start the death spiral.” With no equity funding and likely lack of creditor confidence, the company may have to consider filing for bankruptcy by late 2023 or early 2024, sources said. It is said that it is expensive. More layoffs and down-rounds It may be in the company’s future. Meanwhile, multiple sources familiar with the background to Better.com and Amazon’s “agreement” told TechCrunch that the deal does not actually represent a partnership between the two companies. Rather, Better seems to have announced a new Equity Unlocker tool last week, initially rolling out saying it will be available only to Amazon employees. The news was framed to hint that some sort of partnership had been forged between the two, perhaps to increase Better.com’s credibility.
according to KPMGof Latest Pulse of Fintech reportIn 2022, the United States continued to drive fintech investment, with 2,222 deals accounting for $61.6 billion in 2022. That includes his $25.2 billion in the second half. Seed-stage fintech deals see record investment as valuations of late-stage VC-backed companies plummet, attracting record $4.5 billion from $3.4 billion in 2021 was given. KPMG said in an email:
On the other hand, according to pitch book, enterprise fintech startups are getting more of the broader fintech VC pool.the company’s latest Emerging technology research Specifically, we found that global VC investment in the broader fintech space will reach $57.6 billion in 2022, with 2,747 deals, down 40.7% and 18.1% year-on-year, respectively. Within the industry, the enterprise fintech startup raised 60.9% of his capital from investors compared to retail companies. In 2020, that number was 48.2% of capital.
Ingrid Lunden reports: RailsrFormerly known as Railsbank, the UK-embedded financial start-up, once valued at nearly $1 billion, has been acquired by a shareholder consortium.Managed for continuity as part of the transaction [operating] . . because it rebuilds. The consortium, trading under the name Embedded Finance Ltd, includes former Railsr investors D Squared Capital, Moneta VC, and Venture Capital. The company did not disclose the purchase price. It was valued at around $250 million as of October 2022 when it was still solvent, so this is one starting point for him. “
According to TC’s Tage Kene-Okafor: Fintech in Africa mony point (previously known as TeamApt Inc) has appointed Pawel Swiatek as Chief Operating Officer. Pawel served as his president at Capital One where he was managing for over four years. At Capital One, he was responsible for the bank’s financial inclusion program. He was also part of the management team of Bridgewater, the world’s largest hedge fund. At Moniepoint, his Swiatek experience in financial inclusion will be applied to building execution operating systems, building policies and tools to drive strategy and execution. Moniepoint provides payments, banking, credit and business management tools to over 600,000 businesses, processing over $10 billion of his TPVs each month. The fintech is backed by Lightrock, Novastar, and his QED, a global fintech investor whose managing partner Nigel Morris co-founded Capital One.
payments giant stripe It looks like they’re still trying (hardly) to raise venture capital.Eric Newcomer reported last week Earlier reports said the company is now raising $6 billion instead of the $2 billion to $3 billion it was believed to be trying to secure. According to Eric, Thrive Capital, General Catalyst, Andreessen Horowitz, and Founders Fund are participating in the round, along with Goldman Sachs privately his wealth clients.meanwhile there was a commotion on Twitter Regarding the company’s decision not to return the $15 dispute fee if the dispute is successful.On the other hand, there seems to be some chatter about how FednauThe Federal Reserve’s rollout of a real-time payments system in the coming months could have a negative impact on Stripe. Oh, and as one fintech observer puts it, why the company is “unbeatable” despite the challenges: here.
construction tech startup old castle Expanding into fintech.The material management company has a new invoice matching products Designed to help contractors control spending, eliminate billing errors, and simplify payments. Led by the 31-year-old founder and CEO Maria Davidson, According to Mr. Kojo, 11,000 construction professionals are using it nationwide. The company has raised over $84 million. TechCrunch covered the final round of funding here.
Financing and M&A
Saw it on TechCrunch
Indian Fintech Unicorn Slice Acquires Bank Stake
Why Unicorn Socure Chose a $95 Million Line of Credit
Fynn raises $36 million for platform to fund vocational education students
Synctera Raises $15M to Help Companies Launch Embedded Banking Products in Canada
Elyn delays online payments a bit so you can try it out before paying
Open Banking Startup Abound Raises $601M to Boost AI-Based Consumer Lending Platform
New U.S. Policy Candidly Addresses Suspended Student Debt Relief
and elsewhere
FilmHedge completes $5 million Series A funding. $100 million line of credit
French fintech Aria gets €50m debt facility
Brazilian B2B payments platform Barte raises $3 million
SaaS Fintech Growfin Earns $7.5 Million
Tiger Global Leads $6.5 Million Monnai Deal
Okay, so I’m out of here now. Next week is my family’s spring break, so I’m mostly out and the wonderful Christine Hall is taking over the newsletter. Until then, take care! ! xoxo, mary ann