a16z opening its first overseas office in the UK is a BIG Thing ????; FinTech M&A is wild right now: FIS buys embedded finance startup Bond ??

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???Hey,?Linas here!?Welcome to a????weekly free edition????of my daily newsletter. Each day I focus on 3 stories that are making a difference in the financial technology space. Coupled with things worth watching & most important money movements, it’s the only newsletter you need for all things when Finance meets Tech.

If you’re not a subscriber, here’s what you missed this week:

1. 4 Essential M&A Templates to Master the Art of Dealmaking??? ???[Read this if you want to supercharge your M&A strategy ]
2. Apple might become the First Super App of the West????[deep dive into why & how + lots of bonus reads]
3. Nasdaq buys Adenza in one of the biggest FinTech M&As in 2023???
4. Open Banking is gaining more and more traction???
5. More investors wipe 40% off Revolut valuation???
6. Sezzle’s masterclass on how to make BNPL profitable???
7. Global wealth mgmt behemoth is born: UBS completes acquisition of Credit Suisse???
8. Banks are investing massively in AI???
9. Plaid's building the identity layer for Finance???
10. BlackRock’s Bitcoin ETF: a game-changer or just hype?????[a massive game-changer?]

and more! Don't miss out and join the community here????

Last week (12-16 June) was another crazy intense week in FinTech.?We will look at a16z going international and opening its first overseas office in the UK ????(why this is BIG + priceless resources for startup building); the FinTech M&A that doesn’t stop as FIS buys Bond (what does it mean + 4 essential M&A spreadsheets to master the art of dealmaking) ??, and other interesting news and developments.

Without further ado, let us dive into what happened in the financial technology sector last week. Let’s connect the dots.

a16z opening its first overseas office in the UK is a BIG Thing ????

The launch ???A16z Crypto, the Andreessen Horowitz venture capital fund dedicated to crypto and Web3 startups, has chosen the UK as its first overseas office outside the US, various sources reported.

This is a BIG move, so let’s take a look.

More on this ???The VC was attracted to the UK by its regulatory regime, which has embraced the crypto and Web3 economy in a bid to stamp out the 'casino culture' that has tarnished the industry.

In a blog post announcing the move, the firm said:

While there is still work to be done, we believe that the UK is on the right path to becoming a leader in crypto regulation. The UK also has deep pools of talent, world-leading academic institutions, and a strong entrepreneurial culture. It is home to more “unicorns” than Germany, France, and Sweden combined; to some of the world’s largest financial markets and pools of capital; and to highly sophisticated, world-class regulators. All of these make the UK strongly positioned to lead in web3.

The new office, set to open later this year, will be led by GP Sriram Krishnan, who along with a team, will work to grow the crypto and startup ecosystem in the UK and Europe.

?? THE TAKEAWAY

Why this matters? ???First and foremost, a16z’s expansion to the UK is not about the capital - it’s a strong and timely signaling to US policymakers about crypto and how they are?damaging?the industry.

ICYMI: Regulating crypto industry gets aggressive: SEC sues Coinbase and Binance???

Secondly, it potentially indicates that the UK is doing something right and its quest to become a global web3 hub might not be too far-fetched. Even Prime Minister Rishi emphasized the country’s support for web3 and its aim to provide regulatory clarity for crypto businesses. And that’s crucial for everyone - from startups to VCs. Here’s a brilliant comparison of?the SEC's proposed approach vs. the UK government's proposed approach to crypto?(the winner is more than obvious):

Finally, there’s clearly a money moment too. Although the level of deal flow and access to LPs in the UK is nothing close to the US, but the fact that another top VC is coming to Europe definitely means that there will be more investments and more opportunities. Having Sequoia, Bessemer, Lightspeed, Leftlane, Thoma Bravo, Coatue, General Catalyst, and now Andreessen Horowitz opening UK offices in the last 3 years alone shows that the startup ecosystem in Europe is getting more vibrant. So again - it’s time to build! ??

To make it easier, you can start here:

You will also unlock a breakdown of the most powerful pitch deck framework and essential resources for building a startup in 2023 (a global investor database, how to raise money in a challenging market, etc.).

FinTech M&A is wild right now:?FIS buys embedded finance startup Bond ??

The deal ???Finance giant?FIS?has acquired Banking-as-a-Service (BaaS) FinTech?Bond?in what the payment giant calls a?small but important purchase?for its platform strategy.

This joins a list of other big FinTech deals we have seen as of late, so let’s take a look.

ICYMI: Nasdaq acquires Adenza in one of the biggest FinTech M&As in 2023???

The global wealth management behemoth is born as UBS completes the acquisition of Credit Suisse???

More on this ??? Bond (now part of Atelio by FIS) 's embedded finance platform is designed to help firms quickly build and launch products, including commercial and consumer credit card offerings, as well as debit cards and accounts.

PitchBook notes that Bond was valued at $182 million the last time it raised money, in 2020. Since 2019, Bond has raised a total of $42 million in funding, as per Crunchbase.

Bond will reportedly add BaaS and embedded finance talent, accelerate the time-to-market of new FIS embedded finance capabilities, and tap into the acquired firm's strong sales relationships.

?? THE TAKEAWAY

Looking at the big picture ???It’s not 100% clear why exactly Bond has opted to get acquired (for FIS, it’s pretty obvious - it can build out its talent and tech capabilities, giving it an edge in an increasingly competitive landscape), but it’s interesting that it was a part of 25?Zombie FinTechs?that were likely to be shut down according to Forbes (8 February):

Given it hadn’t raised money since 2020 might indicate that Bond probably has been facing financial issues (remember Railsr?). Zooming out, we must also note that the acquisition comes during a very difficult time in the worlds of technology, venture funding, and financial services. FinTech funding worldwide fell 12% in Q1, creating opportunities for companies with a little extra cash to spare. That’s why earlier this year Marqeta?acquired financial infrastructure startup Power Finance in a $275M deal while JPMorgan?closed its acquisition of Aumni. Also, that’s exactly why Visa?should reportedly buy Brazil-based PayTech Pismo in a deal that could top $1 billion and Fiserv is exploring takeover opportunities to grow its merchant-focused arm, Clover.

So if you’re a solid incumbent or a financially strong startup, this is a golden time to look for M&As.

Bonus:

These will supercharge your M&A strategy and include the following:

1. Financial Fact Book
2. Enterprise Value vs. Equity Value Bridge
3. Net Working Capital
4. Closing Balance Sheet

Extra Reads & Quick Bites for Curious Minds??

• It’s done ? UBS?completed the acquisition of?Credit Suisse, with the combined entity now ready to operate as a consolidated banking group. UBS Group AG will now oversee two distinct parent companies: UBS AG and Credit Suisse AG. Each institution will continue to have its own subsidiaries and branches, as well as clients and counterparties. Furthermore, the merged group will be overseen by UBS Group AG's Board of Directors and Group Executive Board.?The merger was completed in less than three months, bringing together for the first time two worldwide systemically significant institutions.?UBS anticipates that its CET1 capital ratio will be about 14% in the second quarter of 2023 and will remain there throughout the year. It expects RWA savings to balance Credit Suisse's operational losses and hefty restructuring expenditures.?ICYMI: Shotgun wedding: UBS buys Credit Suisse for $3.2 billion???
• Visa + Africa ?? Visa?is launching a fintech accelerator program for African startups as part of its recent $1 billion pledge to accelerate the deployment of digital payments across the continent. The Visa Africa FinTech Accelerator will see up to 40 start-ups each year go through a three-month intensive learning program focused on business growth and mentoring. Following the program completion, Visa says it intends to make capital investments in select participating businesses while accelerating their commercial launch through access to Visa technology and capabilities. Startups throughout Africa can apply to be part of the program through two application phases each year, starting from July 2023.?ICYMI: Visa knows that Africa is the world's next superpower. You should pay attention too??

Money Moves??

• Irish automated accounting platform?Outmin?has raised?€2M?in seed funding.
• PayPal Ventures?has led a $14M Series A funding round for?nocnoc, a firm that helps facilitate cross-border e-commerce between global sellers and Latin America.
• Taiko Labs, a crypto startup aimed at scaling the Ethereum blockchain, has?raised $22M?across two funding rounds, with a?$10M?seed round led by Sequoia China and a?$12M?pre-Series A round led by Generative Ventures.

Continue reading by subscribing to?Linas's Newsletter.?You will receive fresh news about FinTech with hot takeaways every day.

P.S.?You might enjoy my earlier pieces as well:

?? Top 10 FinTech predictions for 2023 ??

?? Top banking trends to watch in 2023 ??

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About: I am?a business developer, sales professional, FinTech strategist, as well as Cryptocurrency and Blockchain enthusiast. I'm highly passionate about Financial Technology and Digital Innovation, and strongly believe that it will change the world for the better. Apart from my daily job at a global payments startup where I'm leading the company's expansion into Europe, I'm an active member of the FinTech community and a TechFin evangelist.

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