Hello TWIF UK & Europe friends,
CB Insights released a report on Europe fintech funding trends highlighting the busy pace of investments this year, already surpassing 2020 in H1 alone. Other highlights include a huge increase in funding for insurance and wealth tech with most deals in the banking, lending and SMB fintech sub sectors.
Please find another week of fintech news, financings and exits below.
Editor’s Note: If you’re an early-stage startup founder raising equity or debt, I may be able to help - reach out to firstname.lastname@example.org.
Tweet of the week 🦉🏆
There were 16 deals in the fintech space across the UK and Europe since the last post, with a total investment of $954m. Some highlights are below.
🇪🇺 Kernolab raised a $1m pre-seed round led by Lighthouse Ventures and Startup Wise Guys.
🇪🇺 Doconomy raised $17m led by CommerzVentures.
🇪🇺 Sorare raised a $680m Series B led by Softbank and included Accel, Atomico, Benchmark, BVP, D1 and a number of football players.
🇬🇧 Envelop Risk raised a $130m Series B led by Softbank and included BlackPine.
🇬🇧 Dopay raised a $18m Series A co-led by Force Over Mass Capital, FMO and NN Group.
🇬🇧 TrueLayer raised a $130m Series E led by Tiger Global and included Stripe.
🇬🇧 Wiserfunding raised £3m from BFG and signed Revolut as a client.
🇬🇧 Ziglu raised £1m via crowdfunding on Seedrs.
🇬🇧 Prodigy Finance raised $750m in debt funding.
🇬🇧 Barclays creates a $30m fintech fund in partnership with Anthemis to fund female founders.
🇬🇧 MarketFinance raised £280m from Barclays and Black River Ventures.
🇬🇧 Taptap Send raised $65m from undisclosed investors.
🇬🇧 Juno raised $2.2m seed round from Lakestar, JME Venture Capital and SIX Group.
🌍 JPMorgan has acquired college fintech platform Frank.
Challenger Banking 🚀
🇪🇺 everyoneInvested has partnered with Mastercard to offer banks a platform to enable their customers to invest spare change.
🇬🇧 New bank Recognise has received regulatory approval to accept deposits from consumers with businesses to follow.
🇬🇧 Wise officially brought its new investing service, Assets, out of stealth mode.
🇬🇧 Monzo has enabled card payments from its savings “Pots”.
🇬🇧 PFM app Claro has taken to London with anti-BNPL signs to warn consumers off the latest buzzy innovation.
Digital Assets ₿
🇪🇺 Solarisbank co-founder Peter Grosskopf is creating a new DeFi app, Unstoppable Finance, with other exec’s formerly at Stuttgart Digital Exchange and Trade Republic.
🇬🇧 Revolut is paying for its Dallas WeWork space in bitcoin.
🇬🇧 Celsius appears to be next in the sights of US regulators for selling “securities” to US residents in the form of interest-generating accounts i.e. same charges as BlockFi
🌍 NFT marketplace OpenSea admitted insider trader by head of product who was then asked to resign.
🌍 Coinbase dropped its Lend product after regulatory threats.
🌍 China has continued its crackdown on crypto deeming all “digital currency activities” illegal.
Traditional Banking 🏦
🇪🇺 Deutsche Bank has acquired payments provider Better Payment.
🇬🇧 JP Morgan launched Chase in the UK promising 1% cashback on everyday purchases, 24/7 support, numberless debit card and 5% interest on roundups.
🇬🇧 Thought Machine have signed a deal with JPMorgan Chase to replace the core banking system in its retail unit in the US.
🇬🇧 Lloyds Bank, Halifax and Bank of Scotland will give customers control over their contactless limit when the new £100 limit comes into effect in October.
Fintech Infrastructure 🚧
🇪🇺 ReceiptHero is integrated with both Visa and Mastercard to create digital receipts.
🇪🇺 Mambu secured a deal to revamp customer digital services for BancoEstado
🇬🇧 Monese is adding BaaS to its product offering, signalling a move from B2C to B2B.
🙌🏻 TWIF Take - This is a similar move to what Starling and Yolt have taken recently and demonstrates the challenging environment that consumer neobanks face in the UK and Europe. However, with that being said, if more companies are focusing on B2B, they need to sell to B2C companies so who will these new B2C customers be? The B2B BaaS space is already crowded with Railsbank, Solarisbank and Clear Bank. Not to mention the difficulty in switching from B2C to B2B. It’s a whole new ball game.
🇪🇺 Mastercard is launching a Sustainability Innovation Lab in Stockholm.
🇬🇧 Stripe is opening a fintech development office in London
🇬🇧 British Retail Consortium is asking politicians to help reduce the cost of cards in the UK.
🌍 PayPal revamps its app as well as adding savings accounts, in-app shopping and messaging in its bid to become a superapp.
🌍 Affirm has developed dynamic checkout options based on what is bought and who is buying.
🌍 Square payments went down over the weekend, typically a busy time for small businesses and their workers.
Regulatory Corner 🔎
🇬🇧 Fintech advocacy group Coadec released a letter calling for quicker government action on “smart data rights” in order to deliver on the promise of open banking and transition to open finance. Smart data rights would enable more sharing of data and power innovation and competition.
Longer reads 📜
Payments and the Observer Effect - Tom Noyes
Eco wants to cut out the middlemen - what will happen if they succeed? - Fintech Across The Pond
Klarna: The $31b Snapchat of personal banking - Nan Wang, Sacra
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See you next week!