There are multiple indicators that Fintech is not just a passing phase. For starters, as previously discussed, fewer tech companies are going public. While that alone would not account for the rise in FinTech, the fact that more and more FinTech companies are attracting private venture capital is a huge indicator. Plus, traditional financial insitutions are throwing their money into the ring, which says more than a stampede of unicorns.
The Most Funded FinTech Companies
CrunchBase reports that March 2016 was a big month for FinTech. Specifically, these 10 FinTech companies raised the most money in this nascent and rising sector:
- Betterment– Raised $100 million in a series E round led by Investment AB Kinnevik. Launched in 2010, Betterment is leading the way in how investors manage their portfolios and lowering fees in the process.
- Gusto– If you’ve never heard of Gusto, it’s because they recently changed their name from ZenPayroll. This start up opened in 2011 but expanded last year with it’s name change. Last month they raised $67 million, according to Let’s Talk Payments.
- Connecture– Francisco Partners led a funding round for Connecture that landed $52 million in the latter’s lap. They specialize in web-based solutions for the health care industry.
- Open Lending– Austin-based Open Lending raised $40 million with just one investor in an equity arrangement. They’ve provided automated lending services to the financial industry since 2000.
- M-Files– Another Texas-based company headquarters in Dallas and provides document management solutions to businesses. M-Files, started in 2001, took in $37.5 million from an all-European contingent of investors.
- AlphaSense– This financial search engine headquartered in San Francisco raised $33 million from four investors. They opened their doors in 2008.
- JustWorks– Since 2012, Justworks has been helping companies manage their human resources better. Their Series C round led by Redpoint earned them an additional $33 million operating capital.
- Edgewater Markets– Edgewater’s niche is technology focused on the aggregation and distribution of foreign exchange for institutional investors. FTV Capital invested $30 million in a private equity round.
- EZBOB– Based in London and founded in 2011, EZBOB raked in 20 million British pounds with a Series C round led by Leumi Partners and Oaktree Capital Management. That translates into almost $28.3 million.
- MoMo– MoMo stands for “Mobile Money” and is a leader in the mobile payments sector. Users have a digital wallet that allows them to transfer money to each other without a mediator. Based in Vietnam, This 2014 start up closed out a Series B round led by Standard Chartered Private Equity with $28 million.
Why There’s Serious Money in FinTech
Why is there so much investment pouring into FinTech? Why right now?
These funding rounds are a testament to the trust that traditional banks and other financial institutions have placed in digital finance. The World Wide Web is now 26 years old and people are using it to buy and sell with all the gusto they’ve always had in participating in barter. Digital money is here, but the best of digital finance is yet to come. It’s almost self evident.