Welcome back to the Next Gen Fintech (NGF) Newsletter! In our last edition, we explored the Key Technologies Shaping FinTech. This time, we’re turning our focus to the top 3 alternative finance startups. Whether you're a fintech enthusiast, investor, or someone looking to learn more about the financial landscape, this article will give you insights into the rising stars in alternative finance.
- Founding Year: 2016
- Founders: Christopher Bruno, Maximilian Niederste-Ostholt, Rob Petrozzo
- Location: New York, NY
- Business Model: Rally allows users to invest in fractional shares of high-value collectibles such as vintage cars, rare wine, and sports memorabilia. The platform democratizes access to alternative assets by fractionalizing ownership, enabling smaller investors to diversify their portfolios in ways that were previously inaccessible.
- Target Market: Investors of all income levels who are interested in owning a portion of rare collectibles.
- Funding: Series B, $109.1 million from investors like Lion Tree and Upfront Ventures.
- Key Milestones: Rally has successfully tapped into the growing interest in alternative investments by offering fractional shares, building a diverse portfolio of collectibles that spans sports, wine, and historical artifacts.
- Relevance: Rally capitalizes on the trend of fractional ownership, which is transforming how people view and invest in alternative assets
- Founding Year: 2017
- Founder: Sheena Allen
- Location: Atlanta, GA
- Business Model: CapWay is a digital banking startup focused on underserved communities. It provides low-fee financial services such as savings accounts and payment tools while also emphasizing financial literacy and education to help users build long-term financial health.
- Target Market: Underserved communities, particularly people with limited access to traditional banking services.
- Funding: $145,000 (seed funding) from investors such as Fearless Fund and Lombardstreet Ventures.
- Key Milestones: CapWay has built a reputation as a mission-driven company focused on financial inclusion. It stands out in the alternative finance space by not only providing digital banking services but also empowering users with financial literacy.
- Relevance: CapWay addresses a key issue in alternative finance—financial inclusion. Its work to democratize access to financial services for underserved populations aligns with broader fintech trends of inclusivity and empowerment
- Founding Year: 2010
- Founders: Samir Desai, James Meekings, and Andrew Mullinger
- Location: London, UK
- Business Model: Funding Circle is a peer-to-peer lending platform connecting small businesses with individual and institutional investors. It offers businesses an alternative way to access loans, often with more favorable terms than traditional banks, while giving investors a chance to earn attractive returns.
- Target Market: Small and medium-sized enterprises (SMEs) seeking funding and investors looking for alternative investment opportunities.
- Funding: Raised $748 million over multiple funding rounds.
- Key Milestones: Funding Circle has facilitated more than $10 billion in loans globally, helping thousands of small businesses grow and thrive.
- Relevance: As one of the leading platforms in peer-to-peer lending, Funding Circle has played a significant role in reshaping how small businesses access capital, a cornerstone of the alternative finance sector.
At NGF, we aim to keep you informed about the technological advancements driving the fintech industry. As we continue to explore these innovations, we'll dive deeper into how they are applied in real-world scenarios, shaping the future of finance.
Stay tuned for the next edition, where we will explore the most innovative fintech startups of this year!
Thank you for being a part of the NGF community. As always, your feedback is invaluable. What technologies are you most excited about? Let us know!
