Fintech investing has gained near sport status. Bank CEOs are looking at fintech investment rounds. Mark Cuban is tweeting about Jill Castilla’s fintech efforts with lending system startup Teslar. Any given teenager is checking a fintech app at the skate park. Anyone remember when financial services was considered predictable and sleepy? OK, me neither. But, it’s never been more cool.
According to CB Insights, US fintechs raised $14.6B in the most recent quarter. While that’s lower than the prior quarter, it’s up 121% for the year. Some perspective on how fast this fintech market is moving:
There is SO MUCH interest that there are simply too many deals and funding rounds to list, but here are some of the recent deals that caught my attention:
This segment picked up speed. As I pointed out just a few months back, a wave of continued lucrative funding rounds are arming the challenger likes of Chime, Varo, and Aspiration. Even N26 (which announced a withdrawal from the U.S. market) had a record-breaking high funding round. Now, more banks are lining up to get in bigger with fintech deals including:
Led by prior SoFi and LendingClub bank acquisitions, Square’s industry bank charter approval, and Revolut’s bank charter application, the interest here continued, although at a lower pace, including a couple of deals here:
As the face of lending (and generating loan growth) changes, credit tech continued a hot streak with several deals including:
In a zeitgeist moment of what is happening in payments market disruption, the Los Angeles’ Staples Center was renamed Crypto.com Arena. A number of deals either had legacy payments rolling up, emerging payments mashing up with commerce, or both:
This continued to be a hot area with several deals including:
Lastly, the startup core and Banking-As-A-Service solution market continues a growth pace with the noted Thought Machine funding joined by funding rounds at Mambu and the noted NYMBUS. And in what appears to be a sign of more things to come, Rockbridge Growth Equity (ties to Rocket Mortgage) and CU Solutions Group acquired database marketing provider Marquis from Falfurrias Capital. Like Rocket Mortgage’s rise using digital tech, marketing, and outreach, Rockbridge’s portfolio reads like a checklist in new world growth methods. Chime, Square, and Rocket’s methods are case studies in how to grow a business (fintech or otherwise) now.
Like so many of these recent deals (SimpleNexus, MK Decision, Abrigo, Floify, BentoBox) and a recent partnership announcement between Rocket Mortgage and Salesforce I’m still sorting out, the common thread is the playbook on explicitly growing customers in the digital-first – and increasingly digital-only – world.
Any other fintech deals you’ve been watching that I missed here? Send me a note