AngelList expands into private equity with acquisition of fintech startup Nova

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The acquisition complements its recently launched Treasury tool, a centralized capital management dashboard; Projector, a portfolio modeling tool; and Relay, its AI-driven portfolio analysis tool.?

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You’re the best, today’s agenda below.

1. INVESTING:?AngelList expands into private equity with acquisition of fintech startup Nova
2. LONG TAKE:?Building Company Playbook #7: Planning and executing your exit strategy (link?here)
3. PODCAST CONVERSATION:?Visa's network-of-networks strategy and vision for Web3 commerce, with Visa Europe's SVP Emma Kerr
4. CURATED UPDATES

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Digital Investment & Banking Short Takes

INVESTING: AngelList expands into private equity with acquisition of fintech startup Nova

AngelList, a company that supports startups, angel investors and job-seekers, has acquired fintech startup Nova for an undisclosed amount. Founded in 2010, AngelList started out as a place for connecting prominent angel investors and startups. It evolved into a fundraising channel for early-stage startups, a recruitment platform connecting these startups with talent, and a suite of products and services for investors. AngelList is known for its platform to create special purpose vehicles and its Carta competitor, Stack. Overall, the company has developed a suite of products and services to support founders, job-seekers, and investors. Its recruitment platform, now WellFound, and its ICO platform, Coinlist, were spun out in 2022 and 2017, respectively. The acquisition of Nova expands its target clientele beyond venture capital to private equity and potentially beyond.?

AngelList grew its “investor assets supported” by 50% in 2022 to $15B, an increase of 50% (and up from $1B in 2018). The number of startups finding funding on the platform increased 21% in 2022 to 8.3k, a 21% increase.?

Nova provides digital subscription products that reduce or eliminate the paperwork required by investment subscriptions. Investors can reuse their Nova identity on future subscriptions as well, removing the duplication of effort. Nova’s customers include Van Eck ($78B in AUM), Pantera ($3.5B in AUM) and BlockTower (AUM not publicly disclosed), and the platform supports more than 10k investors.?

By integrating Nova into the AngelList Transact unit, the acquisition enables AngelList to increase its unified software stack offering, providing an efficient one-stop-shop for venture funds. It complements its recently launched Treasury tool, a centralized capital management dashboard; Projector, a portfolio modeling tool; and Relay, its AI-driven portfolio analysis tool.?

We like this acquisition because Nova fits well into AngelList’s product suite, and at the same time expands AngelList’s target clientele. The existing AngelList tool suite provides a foundational toolset for venture funds and entrepreneurs, removing operational inefficiencies and helping to streamline complex transactions. Nova has proven its ability to generate positive cash flow, having grown to 27 employees after five years while only having raised a single $2MM Seed round. With AngelList’s resources and established client base, this appears to be a strongly positive strategic combination for both entities. We believe their aspirations to serve both private equity and public markets clients is achievable.???

Blueprint Deep Dives

Building Company Playbook #7: Planning and executing your exit strategy

We are continuing our Building Company Playbook series, targeted at addressing the key questions in getting Fintech and DeFi projects off the ground.

This entry will focus on how an exit strategy is paramount to a venture's success, dictating not only its endgame but also influencing operational and strategic decisions along the way. Understanding various exit options, such as secondaries, M&As, and IPOs, and employing tactics to negotiate a profitable deal, can equip a fintech company to maximize its value and ensure a successful transition.

???? Read Long Take

Podcast Conversation:?Visa's network-of-networks strategy and vision for Web3 commerce, with Visa Europe's SVP Emma Kerr

In this conversation, we chat with?Emma Kerr?-?Senior Vice President, Head of Strategic Partnerships, Europe at Visa.

Her team is responsible for all the Big Tech, FinTech and Enabler relationships across Europe - focusing on driving innovation at Visa. Prior to this role, she was the VP of Strategy and Operations for UK&I driving industry initiatives and deals. Before then, she was the Chief of Staff to the CEO and Chairman of Visa between 2016 to 2019. Emma spent her early career in Visa's digital product business and merchant and acquiring team in Asia Pacific. Kerr holds a Bachelor of Arts in Economics and English from Northwestern University. Additionally, she holds an Integrated Marketing Communications certificate from Northwestern’s Medill School of Journalism.

???? Listen to Podcast

Curated Updates

Here are the rest of the updates hitting our radar.

Neobanks

• ?Bunq raises €44.5m?- Finextra
• Bloom Money raises ￡1M to digitize finance for ethnic communities?- TechCrunch

Payments

• ?Jeeves hits over $40M in annualized revenue as it expands beyond corporate credit cards?- TechCrunch
• FedNow will be a ‘large accelerant’ for fintech - Plaid CEO?- Finextra
• Goldman seeks way out of Apple Card partnership - report?- Finextra
• Credit Card Transactions in Brazil May Have Peaked as Pix Continues to Surge?- Businesswire
• Fintech Platform Croissant Launches with $24 Million in Initial Funding and a Mission to Change the Future of Commerce?- Businesswire
• Shopify Credit Adds Business Credit Cards to Streamline Small Business Working Capital Processes?- PYMNTS

Digital Investing

• ?UK and Singapore Enhance Cooperation in Sustainable Finance and FinTech?- Gov UK

AI

• ?TIFIN and J.P. Morgan Launch TIFIN.AI for AI-powered Fintech Innovation?-- Fagen Wasanni Technologies
• Artificial Intelligence in the Global Fintech Market 2023-2028: Growing Demand for AI-Based Banking Software Propels Solutions Segment - ResearchAndMarkets.com?- Businesswire

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