New Funding & Deals in Wealth, Asset Management and Banking Technology Feb 12th to 18th
FUNDING OVERVIEW – Themes this week
1)?????Financial Planning 2) Embedded Finance 3) Risk and Analytics 4) Capital Management 5) Segment Banking
Asset Map – US$6ml, Series B, Various Investors, Financial Planning (USA)
Description: Asset-Map is a Software-as-a-Process experience for financial professionals who provide in-person and remote advice in the wealth management, investment, and insurance markets.
Value Proposition:?Asset-Map has a strong following for its particular approach towards financial planning which is highly visual and offers highly personalized and impactful reporting. The investment continues the broader theme of modernizing and broadening access to financial planning tools that can offer holistic approaches, and cover both accumulation and de-accumulation requirements.
Omnio – Eu 9ml, Pre-IPO Funding, Not Disclosed, BAAS & Embedded Finance (Uk/Europe) OMNIO
Description: Omnio supports other financial institutions and non-regulated enterprises with its Banking-as-a-Service model, which manages the complexity of offering retail financial products for leading consumer brands and financial institutions.??Omnio delivers a modular end-to-end solution that supports the accounts of record all the way through to operations, regulatory reporting and compliance.?
Value Proposition: Omnio has been building a more complete BAAS and embedded finance platform over a number of years, and targets corporate clients as much as financial institutions as clients. It’s model to date has been focused on bringing together e-money capabilities with Loyalty programs into a single platform design.
Sandbox Banking – US$ 4.3ml, Seed, Horizon Ventures, APIs & Integration Platform (USA) Sandbox Banking, an nCino Company
Description: Sandbox Banking is a fintech building a low-code integration platform called Glyue to help banks and credit unions connect fintech products into their existing systems. Banks and credit unions grow revenue and increase operational efficiency by securely integrating fintech products with their existing infrastructure via Glyue
Value Proposition:?There are lots of players in the smaller end of the US banking system who don’t have the capacity to develop embedded finance capabilities to broaden the distribution of their offering, so Sandbox is creating an integration platform to cater to those specialist community banks and credit unions that want to broaden their offering to their members and deposit holders.
Landytech – US$ 12ml, Series B, Aquiline Technology Growth, Reporting, Data & Analytics Landytech
Description: Landytech has already developed a platform, dubbed Sesame, to allow its customers to consolidate their reporting procedures, analyse investment risks, among others. The platform has also been designed to help investors make more informed decisions by using various investment updates, analytics and reporting solutions.
Value Proposition: There continues to be interest in the evolution of specialist wealth technology providers who can deliver solutions based off of account aggregation for the Ultra HNW and Family office market.?The emphasis beyond integration remains around risk analytics and reporting.
Modernfi – US$4.5ml, Seed, Andreessen Horowitz, Demand Deposit Marketplace
https://techcrunch.com/2023/02/14/andreessen-horowitz-modernfi-deposit-marketplace-fintech/ ModernFi
Description: ModernFi was founded in 2022 by Bertolotti and Adam DeVita to build a transparent marketplace that connects banks to exchange deposits on demand. It also helps the banks manage balance sheet size and earn potential revenue. It is currently working with U.S.-based banks ranging in size from $500 million to $100 billion in assets.
Value Proposition: ?This investment follows a broader capital and deposit management theme that is designed to broaden the distribution of excess non-lended demand deposits. These types of specialist marketplaces have funded interest in the US because of the highly fragmented nature of the US banking system. ?
Comun – US$4.5ml, Seed, Costanoa Ventures, Neobank for Latinos Comun
领英推荐
Description: Comun provides Latino migrants access to traditional financial services including a checking account connected to a physical and virtual Visa debit card, direct deposits for payroll and free ATM withdrawals and deposits. It does not require a social security number or impose any hidden fees.
Value Proposition:?Another entrant targeting an underbanked segment that has additional challenges often to access a broad range of core banking services due to immigration status, lower income, and thin credit
DEALS AND ABORTED DEALS OVERVIEW – Themes this week
1)?????Financial Wellbeing 2) Islamic Finance 3) Advisory Consultancy 4) Wealth Platform 5) Financial Market Data 6) Trading
Cushon Group/Natwest Bank – Workplace Financial Wellbeing and Pensions (UK) NatWest Cushon NatWest Group
Rationale: Entry Strategy – Natwest took a look beyond the financial performance of Cushon at its emerging importance in the workplace financial wellbeing area, and its growing role as a Mastertrust for SME businesses.?There is a belief among banks that they need to invest more widely in corporate services and this represents a way of doing so, while also providing a gateway into wealth and pension advisory.
iWills/Wahed – Islamic provision of wills (UK) Wahed iWills Legal
Rationale: Platform Service Add-on (Legal Service) – Wahed is creating a full service platform for Islamic finance, and this represents a continued evolution of that platform design concept.?It delivers specialist legal capabilities that sit in an important part of the later stage wealth management life cycle, ie. estate planning
Truclarity/Dynasty Financial Partners – Advisory Services for Breakaway RIAs (USA) TruClarity Dynasty Financial Partners
Rationale: Platform Service Add-on (Consulting Service): While Dynasty has mostly been focused on direct investment opportunities in growth RIA businesses, it makes a lot of sense that they would want to directly own (as oppose to merely partner) with one of the leading consulting firms that usually works with breakaway wirehouse teams. The benefits here are not only in the skill set but also in the quality of the organizations is size and client assets that work with Truclarity.
SigmaLogic/TMX - Wealth Management Data, Analytics, & Research Platform (USA) TMX Group Sigmalogic
Rationale: Platform Service Add-on (Information Services) – TMX had already invested in Sigmalogic as a minority, but clearly decided that its full suite of decision support, portfolio management, and reporting capabilities could be a great way for the exchange to develop its relationship with the wealth management segment.?This follows a line of investment logic that has been developed by Nasdaq via its Solovis/Evestment alliance acquisitions.
Xignite/Quodd – Market Data Cloud Based API Platform (USA) Xignite, A QUODD Solution QUODD
Rationale: Consolidation and Product Enhancement – Xignite has tried to increase its own funding capabilities independently in the past, but this type of deal that consolidates cloud provision of financial and market data makes a lot of sense. It enable a large number of heavy and lightweight consumers of financial market data to have both apis and data management in a single solution design and thus should help with distribution, license management, and cost.
Rationale: Platform Enhancement, Issue: Valuation – N26 has been flirting with different ways of expanding its banking platform into wealth/brokerage so that it has a more rounded offering and new revenue streams. ?BUX would have offered both as well as access to a broad pan-European client base, but clearly valuation consideration was an issue.
Chief Marketing Officer
2 年Hi Roger, It's very interesting! I will be happy to connect.