The past week witnessed a surge in funding rounds, with the FinTech sector leading the way with a staggering 33 deals. Among these, the standout deal was a massive £345 million investment in business credit firm TP24. Additionally, the cryptocurrency space saw significant funding activity, with cryptonative investment firm CoinFund securing $158 million in seed funding. In total, more than $1.3 billion was raised across various industries.
FinTech Reigns Supreme:
FinTech proved its dominance, accounting for eight of the 33 funding rounds this week. CyberTech, PayTech, Cryptocurrency, and Blockchain, as well as WealthTech, followed closely behind with two deals each. InsurTech and RegTech also saw noteworthy funding, with three and two deals, respectively. The burgeoning ESG (Environmental, Social, and Governance) sector captured one deal.
Geographic Distribution:
The United States emerged as the leading location for funding rounds, with 14 deals taking place within its borders. The United Kingdom closely followed with three deals, while Australia and France secured two each. The Netherlands, Switzerland, Singapore, Latvia, Mexico, South Korea, Luxembourg, Nigeria, and the Philippines each contributed one deal to the week’s funding activity.
Highlights of This Week’s Deals:
- Barclays and M&G Investments Boost TP24 with £345m: TP24, a forward-thinking FinTech firm specializing in flexible revolving business credit, successfully raised an impressive £345 million in a debt funding round. The substantial investment came from prominent UK entities, Barclays Bank, and M&G Investments. Barclays committed up to £200 million in warehouse financing, while M&G provided up to £40 million in mezzanine funding. TP24’s innovative approach assists small to medium-sized enterprises (SMEs) by offering flexible revolving business credit based on their outstanding invoices, without taking over the debtor base.
- CoinFund Triumphs with $158m Funding: Cryptonative investment firm CoinFund secured $158 million in its CoinFund Seed IV Fund LP. The successful funding round garnered support from diverse sources, including sophisticated institutional investors, family offices, and affluent individuals. Headquartered in Brooklyn, CoinFund was founded by industry veterans Jake Brukhman and Alex Felix and has become a significant player in the financial technology landscape, supporting promising founding teams in the web3 ecosystem and investing in blockchain technology and its applications.
- MODIFI Strengthens with $100m Facility from HSBC: Global business payments firm MODIFI, known for its cross-border B2B transactions, announced a new funding round. The FinTech company, founded in 2018, secured a $100 million debt facility in a deal with HSBC Innovation Banking UK. This funding milestone aligns with MODIFI’s refinancing strategy to diversify its funding sources and collaborate with top-tier capital providers. MODIFI’s digital platform facilitates international business for importers and exporters, empowering smaller businesses to compete on a global scale.
- Netcraft Receives Over $100m in Global Cybercrime Disruption: Netcraft, a renowned global leader in cybercrime detection, disruption, and takedowns, garnered significant attention in the FinTech sector. Its advanced technology platform effectively serves financial institutions, governments, and corporations worldwide. The company raised an impressive sum of over $100 million, with Spectrum Equity leading the investment. Spectrum Equity is well-regarded for its focus on internet-enabled software and data services companies.
- Augment Bolstered with Up to $100m Funding from Altamont: Newly launched reinsurance broker Augment entered the market with substantial backing from private equity firm Altamont Capital Partners. The strategic investment, potentially reaching up to $100 million, highlights the promise and significance of Augment’s innovative approach to reinsurance. In a landscape of increasing macroeconomic volatility and complex risks, Augment aims to provide tailored solutions that transcend generic approaches.
- Thunes Raises $72m in Series C Funding: Global B2B payment platform Thunes augmented its Series C funding round, accumulating a total of $72 million. The funding was contributed by notable investors, including Visa, EDBI, and Endeavor Catalyst. Thunes specializes in secure, instantaneous, and transparent international money transfers, offering a send-to-wallet capability to 78 digital wallet providers worldwide.
- Karat Financial Secures $70m for the Creator Economy: Karat Financial, a pioneer in financial services for creators, achieved a major milestone with $70 million in funding. As a leader in the burgeoning creator economy valued at $250 billion globally, Karat provides banking solutions tailored to content creators, enabling them to build personal credit history and access capital efficiently.
- Tractable Revolutionizes InsurTech with $65m in Series E Funding: London-based AI company Tractable announced a successful Series E funding round, securing $65 million. Spearheaded by the SoftBank Vision Fund 2 and supported by existing investors Insight Partners and Georgian, the funding will further fuel Tractable’s groundbreaking AI-based damage assessment system, which streamlines the insurance claims process.
These impressive funding rounds underscore the thriving ecosystem of financial technology and its potential to drive innovation and growth across various sectors. As these companies secure substantial investments, they position themselves for further expansion and technological advancement in the ever-evolving world of finance.