News Briefing - Crowdfunding, SME And Alternative Finance

panel at an Anothr Crowd event

1. UK - FinTech  

 

Crowdfund Insider on a UK FinTech raising capital in the US: 

 

“UK-based Fintech Payhawk, a company focused on developing the “financial system of tomorrow” that combines credit cards, payments, and expenses into “one experience,” has revealed that they’ve closed a $20 million Series A financing round. 

The firm’s management noted on April 20, 2021, that this is “a major milestone for Payhawk and will support our mission to build the financial system of tomorrow.” 

They added: 

“With Klarna backers QED Investors, we’re welcoming world-class investors on board. The continuous support of our early investor Earlybird Venture Capital fund is a vote of confidence in our business model. In less than three years, our extraordinary team has developed the only financial platform that gives you and your finance teams maximum control and visibility over your business spend. This is just the beginning.” 

The Series A round is led by the US-based fund QED Investors, which has “a strong track record of investing in 18 fintech unicorns, including Klarna and Nubank,” the update confirmed. Existing investor Earlybird Digital East, which led the $3.6 million seed round for Payhawk in March of last year, is also “contributing fresh capital,” the release added while noting that Yusuf Ozdalga will “join the Payhawk board alongside existing investors Mehmed Atici from Earlybird Digital East and Vassil Terziev from Eleven Ventures.” 

 

 

2. UK - FinTech  

AltFi reports a rapid equity raise: 

 

“The fledgeling fintech has only been on the scene for a short while but has already attracted a host of investors in its heavily oversubscribed, and now closed, crowdfunding campaign. 

Tred is hoping to change the way we think about our carbon footprints, helping users to track their carbon footprint, reduce their impact on the environment and gives customers a simple way to offset the rest. 

Similar to the Bunq premium green subscription plan, every time you spend using your Tred card you help plant a tree, with all profits going towards reforestation projects based here in the UK.  

AltFi caught up with co-founders Will Smith and Pete Kirby last week just as Tred’s crowdfunding campaign hit £700,000. 

“The response has been amazing,” Smith told AltFiTred’s campaign reached £1m on Tuesday, with over 1,000 investors participating in the fundraising effort.  

The two co-founders initially set out a target of raising £400,000 in their Crowdcube campaign, only to smash through their initial target in a matter of hours.” 

 

3. UK – FinTech 

 

Finextra reports: 


“3s.money, a UK startup that helps corporates accept and manage bank transfers in foreign markets, has hit a £40 million valuation on a £3 million Series B funding round led by TMT Investments. 

FCA e-money licence-approved 3s.money says it has seen revenue grow by more than four times during the Covid-19 crisis as it has boosted its headcount from 15 to 40 with offices in London, Dubai, Amsterdam, Luxembourg and Riga.

The new funding will be used to continue hiring and to further expand the multi-currency business accounts with GBP, EUR and USD direct IBANs into new markets.” 

 

 

4. US – FinTech 

 

Finextra reports: 

 

“The Tifin Group, an umbrella group operating a host of fintech companies in the asset and wealth management industry, has raised $22.3 million in a Series B funding round joined by JP Morgan Asset Management, Morningstar and Broadridge. 

Tifin was founded in 2018 as a fintech studio and evolved into an operating business last year with 10 active operating companies.

Its businesses develop fintech products that "help bridge the gap" between retail investors, financial advisors, and asset managers and focus on "proven science, investment management, software, and algo technology".

The funding will be used to make additional acquisitions and to work with the new investors to help accelerate their fintech innovation initiatives.” 

 

5. International – FinTech 

 

AltFi reports on the targeting of teenagers 


“Digital banks that were developed with millennials in mind have now turned their attention to the next generation, but their road to success is set to be bumpy. 

“It’s an interesting opportunity for investment but also a tricky one,” said Marcel Van Oost, an early stage fintech investor.  

“The best brand will eventually win in this digital banking era, so the ones that are really building a brand that clients believe in, not just another digital bank like Revolut or Starling. These were the first ones that launched a bank [that was] fully digital. But the ones that will eventually win are the best brands out there.” 

Targeting teenagers is not a new phenomenon. Back in 2012 GoHenry and Osper in the UK were set up to do exactly this. But in the last few years, it has become more popular as fintech entrepreneurs have started looking for niche areas they can disrupt.  

According to fintech research group WhiteSight, there were nearly 60 neo banks catering to kids and teens around the world in 2020. This includes existing digital banks expanding their services, like Danish neobank Lunar, which launched accounts for teenagers from 15 to 17 years old last year; as well as those that are only targeting teenagers like Pixpay and Kard in France.  

The number is set to grow. For example, in Germany, a new digital bank for 15 to 24-year-olds is launching this month called Pockid.”