San Francisco has rising competition when it comes to big fintech startups

According to Innovate Finance, the U.K. is a world leader when it comes to securing VC investment in fintech, ranking third globally behind China and the United States. Earlier this year, SoftBank led a $440 million investment in OakNorth, which increased the fintech firm’s value to $2.8 billion. Fintech’s growth is impacting the U.K.’s traditional banking sector, the report also noted, with their core revenue streams coming under attack. “It is only now, with the rise of the fintech unicorns, t


According to Innovate Finance, the U.K. is a world leader when it comes to securing VC investment in fintech, ranking third globally behind China and the United States. Earlier this year, SoftBank led a $440 million investment in OakNorth, which increased the fintech firm’s value to $2.8 billion. Fintech’s growth is impacting the U.K.’s traditional banking sector, the report also noted, with their core revenue streams coming under attack. “It is only now, with the rise of the fintech unicorns, t
San Francisco has rising competition when it comes to big fintech startups Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-09  Authors: chloe taylor, alexander spatari, moment, getty images
Keywords: news, cnbc, companies, fintech, oaknorth, francisco, world, sector, rising, million, investment, big, report, san, growth, startups, comes, yearonyear, competition, banking


San Francisco has rising competition when it comes to big fintech startups

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Each morning, the “Beyond the Valley” newsletter brings you all the latest from the vast, dynamic world of tech – outside the Silicon Valley.

According to Innovate Finance, the U.K. is a world leader when it comes to securing VC investment in fintech, ranking third globally behind China and the United States. Global VC investment in fintech last year reached a record $36.6 billion, Innovate Finance’s data shows, which was secured across 2,304 deals — a 148% year-on-year increase.

London’s top fintech unicorns include Revolut, TransferWise, and OakNorth. The report flagged challenger bank OakNorth as one to watch, noting the company’s “phenomenal” income growth from £77.1 million ($100.81 million) to £177.6 million in just 12 months — a year-on-year revenue increase of 268%.

Earlier this year, SoftBank led a $440 million investment in OakNorth, which increased the fintech firm’s value to $2.8 billion.

Elsewhere in the sector, Monzo is reportedly close to securing $130 million from a U.S. investor that would double its value to £2 billion.

Fintech’s growth is impacting the U.K.’s traditional banking sector, the report also noted, with their core revenue streams coming under attack.

“The rise of smartphones and 4G means that increasingly, digital banking is an option, significantly reducing the barriers to entry for new entrants,” the report’s authors said. “It is only now, with the rise of the fintech unicorns, that the banking sector has woken up and started to adapt to the new paradigm.”

It predicted that by 2020, more than half of U.K. payment service providers would be digital-only.

“For millennials who grew up with mobile devices (fintech) is particularly appealing because they want to conduct financial transactions the same way they would share pictures or apply for a job,” James Murray, director of financial services at Robert Walters, said in the report.

“The pace of change has been so rapid over the past decade that the perception of digital banking has shifted from an option to a requirement,” he added.

However, the report warned that Brexit could create barriers to fintech growth rates, as any hard-border scenario could shrink the U.K.’s talent pool.


Company: cnbc, Activity: cnbc, Date: 2019-04-09  Authors: chloe taylor, alexander spatari, moment, getty images
Keywords: news, cnbc, companies, fintech, oaknorth, francisco, world, sector, rising, million, investment, big, report, san, growth, startups, comes, yearonyear, competition, banking


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Fintechs help boost US personal loan surge to a record $138 billion

The unsecured personal loan market hit an all-time high last year, surging 17 percent year over year to $138 billion, according to data from TransUnion released Thursday. Last year, fintech companies issued 38 percent of all U.S. personal loans, according to TransUnion. Banks’ market share however, is heading in the other direction. Traditional banks’ share of those loans is down to 28 percent from 40 percent five years ago. While their market share shrank, they still saw overall growth in total


The unsecured personal loan market hit an all-time high last year, surging 17 percent year over year to $138 billion, according to data from TransUnion released Thursday. Last year, fintech companies issued 38 percent of all U.S. personal loans, according to TransUnion. Banks’ market share however, is heading in the other direction. Traditional banks’ share of those loans is down to 28 percent from 40 percent five years ago. While their market share shrank, they still saw overall growth in total
Fintechs help boost US personal loan surge to a record $138 billion Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-21  Authors: kate rooney, don emmert, afp, getty images
Keywords: news, cnbc, companies, help, loans, transunion, billion, share, surge, laky, fintech, according, growth, 138, market, loan, record, boost, personal, fintechs


Fintechs help boost US personal loan surge to a record $138 billion

Americans are turning to up-and-coming fintech firms instead of traditional banking options to pile on debt.

The unsecured personal loan market hit an all-time high last year, surging 17 percent year over year to $138 billion, according to data from TransUnion released Thursday.

Digital-first financial technology companies were largely responsible for that momentum.

“The rapid growth in consumer loans sits squarely on the shoulders of fintechs,” said Jason Laky, senior vice president and leader of TransUnion’s consumer lending line of business. “They continue to be the main driver.”

Last year, fintech companies issued 38 percent of all U.S. personal loans, according to TransUnion. That’s up from 35 percent a year earlier and just 5 percent as recently as 2013. Banks’ market share however, is heading in the other direction.

Traditional banks’ share of those loans is down to 28 percent from 40 percent five years ago. Credit unions are down to 21 percent from 31 percent in the time period. While their market share shrank, they still saw overall growth in total loan balances, according to Laky.


Company: cnbc, Activity: cnbc, Date: 2019-02-21  Authors: kate rooney, don emmert, afp, getty images
Keywords: news, cnbc, companies, help, loans, transunion, billion, share, surge, laky, fintech, according, growth, 138, market, loan, record, boost, personal, fintechs


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SoftBank leads $440 million investment in UK fintech OakNorth, valuing it at $2.8 billion

British digital bank OakNorth said Friday it secured $440 million in an investment round led by Japan’s SoftBank. The firm, which lends to small-to-medium enterprises through its digital platform, said it had raised $390 million from SoftBank’s $100 billion Vision Fund, with the remaining capital coming from Clermont. The deal gives the three-year-old firm an eye-watering $2.8 billion post-money valuation, making it Europe’s most valuable private fintech group. OakNorth’s announcements confirmed


British digital bank OakNorth said Friday it secured $440 million in an investment round led by Japan’s SoftBank. The firm, which lends to small-to-medium enterprises through its digital platform, said it had raised $390 million from SoftBank’s $100 billion Vision Fund, with the remaining capital coming from Clermont. The deal gives the three-year-old firm an eye-watering $2.8 billion post-money valuation, making it Europe’s most valuable private fintech group. OakNorth’s announcements confirmed
SoftBank leads $440 million investment in UK fintech OakNorth, valuing it at $2.8 billion Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-08  Authors: ryan browne, alex rumford
Keywords: news, cnbc, companies, leads, growth, softbank, digital, billion, capital, oaknorth, uk, valuing, softbanks, fintech, 440, investment, million, firm


SoftBank leads $440 million investment in UK fintech OakNorth, valuing it at $2.8 billion

British digital bank OakNorth said Friday it secured $440 million in an investment round led by Japan’s SoftBank.

The firm, which lends to small-to-medium enterprises through its digital platform, said it had raised $390 million from SoftBank’s $100 billion Vision Fund, with the remaining capital coming from Clermont.

The deal gives the three-year-old firm an eye-watering $2.8 billion post-money valuation, making it Europe’s most valuable private fintech group.

OakNorth’s announcements confirmed reports overnight that said the company had received a new cash injection from the Japanese tech giant.

Speculation over the funding began late last year after a Times of London report said that SoftBank was in talks with OakNorth and fellow British fintech firm Revolut about investing in both businesses via its technology investment fund.

“We decided that, with (SoftBank’s) capital, and with their network, that we would be able to significantly expand to growth plans we have for the business,” Rishi Khosla, co-founder and chief executive of OakNorth, told CNBC over the phone.

“Aligned with our mission to support the financing needs of growth SMEs across the globe, we thought SoftBank… would be a really good investor to have alongside our existing strong investors.”


Company: cnbc, Activity: cnbc, Date: 2019-02-08  Authors: ryan browne, alex rumford
Keywords: news, cnbc, companies, leads, growth, softbank, digital, billion, capital, oaknorth, uk, valuing, softbanks, fintech, 440, investment, million, firm


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Fintech start-up Tink raises $64 million at $270 million valuation

Swedish financial technology start-up Tink says it’s raised 56 million euros ($64 million) in a funding round aimed at fueling its expansion plans. The funding exercise values Tink at approximately 240 million euros ($273 million), a person familiar with the deal told CNBC on the condition of anonymity as the valuation has not been publicly announced. The Stockholm-based firm, which is backed by European banks SEB, Nordea and ABN AMRO, offers an app for people to get a snapshot of how they’re sp


Swedish financial technology start-up Tink says it’s raised 56 million euros ($64 million) in a funding round aimed at fueling its expansion plans. The funding exercise values Tink at approximately 240 million euros ($273 million), a person familiar with the deal told CNBC on the condition of anonymity as the valuation has not been publicly announced. The Stockholm-based firm, which is backed by European banks SEB, Nordea and ABN AMRO, offers an app for people to get a snapshot of how they’re sp
Fintech start-up Tink raises $64 million at $270 million valuation Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-07  Authors: ryan browne
Keywords: news, cnbc, companies, million, 270, startup, valuation, nordea, funding, venture, seb, 64, round, fintech, abn, tink, technology, raises


Fintech start-up Tink raises $64 million at $270 million valuation

Swedish financial technology start-up Tink says it’s raised 56 million euros ($64 million) in a funding round aimed at fueling its expansion plans.

The funding exercise values Tink at approximately 240 million euros ($273 million), a person familiar with the deal told CNBC on the condition of anonymity as the valuation has not been publicly announced.

The Stockholm-based firm, which is backed by European banks SEB, Nordea and ABN AMRO, offers an app for people to get a snapshot of how they’re spending across all their bank accounts.

But it also licenses its technology to banks with partnership deals, through which it either integrates its platform with their apps or helps them develop new standalone apps.

For instance, the company joined forces with ABN AMRO to help the Dutch lender create a new financial management app called Grip.

Tink said Thursday it had picked up fresh capital in a venture round that was led by Insight Venture Partners, with backing from SEB, Nordea’s venture capital arm and ABN AMRO’s corporate venture fund.

Christian Clausen, former chief executive of Nordea, and Nikolay Storonsky, co-founder and chief executive of fintech start-up Revolut, also invested in the company.


Company: cnbc, Activity: cnbc, Date: 2019-02-07  Authors: ryan browne
Keywords: news, cnbc, companies, million, 270, startup, valuation, nordea, funding, venture, seb, 64, round, fintech, abn, tink, technology, raises


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HSBC and Goldman Sachs back fintech firm Bud’s Series A funding round

British fintech start-up Bud said Monday that it had secured $20 million in a funding round co-led by HSBC and Goldman Sachs. Proponents of open banking say that it will increase competition in the industry and benefit consumers, giving them more choice over who they bank with. “The market dynamic is such that open banking is a much bigger change for banks than I think people realize,” he told CNBC. “Open banking essentially allows the customer to get their banking data and make payments from an


British fintech start-up Bud said Monday that it had secured $20 million in a funding round co-led by HSBC and Goldman Sachs. Proponents of open banking say that it will increase competition in the industry and benefit consumers, giving them more choice over who they bank with. “The market dynamic is such that open banking is a much bigger change for banks than I think people realize,” he told CNBC. “Open banking essentially allows the customer to get their banking data and make payments from an
HSBC and Goldman Sachs back fintech firm Bud’s Series A funding round Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-04  Authors: ryan browne, luke macgregor, bloomberg, getty images
Keywords: news, cnbc, companies, series, customer, round, sabadell, hsbc, fintech, buds, banking, open, data, venture, firm, investec, sachs, banks, goldman, services, funding


HSBC and Goldman Sachs back fintech firm Bud's Series A funding round

British fintech start-up Bud said Monday that it had secured $20 million in a funding round co-led by HSBC and Goldman Sachs.

The London-based company’s platform lets banks update their apps to give users access to financial services products from rivals. Banks can also categorize a customer’s spending data using Bud’s technology to help them find more cost-efficient products.

Its offering is part of an emerging theme in the world of fintech known as “open banking,” which essentially means banks sharing their customer data with third-party providers to enable them to create new financial products.

Proponents of open banking say that it will increase competition in the industry and benefit consumers, giving them more choice over who they bank with.

Ed Maslaveckas, Bud’s co-founder and chief executive, said in an interview that the sector has seen a “massive shift” from a focus on competitive rates and services to a digital-oriented customer experience and a “marketplace” banking model.

“The market dynamic is such that open banking is a much bigger change for banks than I think people realize,” he told CNBC. “Open banking essentially allows the customer to get their banking data and make payments from any app or service of their choosing.”

Bud’s Series A funding round — an early-stage investment — also got backing from other big lenders including Australia’s ANZ, South Africa’s Investec and Spain’s Banco Sabadell. Investec invested through its venture fund INVC while Banco Sabadell participated via its venture arm InnoCells.


Company: cnbc, Activity: cnbc, Date: 2019-02-04  Authors: ryan browne, luke macgregor, bloomberg, getty images
Keywords: news, cnbc, companies, series, customer, round, sabadell, hsbc, fintech, buds, banking, open, data, venture, firm, investec, sachs, banks, goldman, services, funding


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Investors who believe finance is going digital now have a way to put money on the trend

ARK Investment Management is launching its first financial technology, or “fintech,” focused exchange traded fund on Monday. The actively managed “ARK Fintech Innovation ETF” began trading on the New York Stock Exchange Arca under the ticker “ARKF.” It includes public companies that could use technology to bypass incumbent financial players by making things faster and cheaper, the company said. The idea for a fintech ETF had been on the New York-based firm’s road-map for a few years, CEO Catheri


ARK Investment Management is launching its first financial technology, or “fintech,” focused exchange traded fund on Monday. The actively managed “ARK Fintech Innovation ETF” began trading on the New York Stock Exchange Arca under the ticker “ARKF.” It includes public companies that could use technology to bypass incumbent financial players by making things faster and cheaper, the company said. The idea for a fintech ETF had been on the New York-based firm’s road-map for a few years, CEO Catheri
Investors who believe finance is going digital now have a way to put money on the trend Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-04  Authors: kate rooney, source
Keywords: news, cnbc, companies, money, digital, technology, fintech, bitcoin, traditional, financial, investors, trend, etf, believe, companies, wood, square, finance, way, going, according


Investors who believe finance is going digital now have a way to put money on the trend

ARK Investment Management is launching its first financial technology, or “fintech,” focused exchange traded fund on Monday.

The actively managed “ARK Fintech Innovation ETF” began trading on the New York Stock Exchange Arca under the ticker “ARKF.” It includes public companies that could use technology to bypass incumbent financial players by making things faster and cheaper, the company said. This is the firm’s seventh ETF since launching in 2014.

The idea for a fintech ETF had been on the New York-based firm’s road-map for a few years, CEO Catherine Wood told CNBC. But ARK’s Japanese partner Nikko Asset Management saw the rapid growth in mobile payments in Asia, and asked if they could launch earlier than planned.

“China is really showing us the way — they didn’t have the older financial infrastructure so they could leapfrog us,” said Wood. “That business is spreading like wildfire.”

ARK has $6.5 billion assets under management.

Wood pointed to the ubiquity of giants like Alibaba, parent company of Ant Financial, and Tencent in Asia, which are both in the ETF. Those and other companies in ARKF are looking to upend traditional institutions by offering “better, cheaper, faster, and more novel and secure” services, according to Wood.

The ETF spans across three areas of technology. The first is “mobile value transfer devices,” or anything that lets someone send money or pay through a phone. Square, the ETF’s biggest holding, and PayPal focus on peer-to-peer payments and both leaders in the U.S. online payment realm and are “nipping at the traditional big bank’s heels,” Wood said.

Another key area is blockchain, the technology behind bitcoin. Despite the nosedive in bitcoin prices, Wood is still bullish on the future of it and other cryptocurrencies. She pointed to the jump in volumes, and the amount of people sending and receiving bitcoin, despite falling prices. Square, for example, lets customers buy bitcoin through the Square Cash App, and its CEO Jack Dorsey has touted its potential. By embracing crypto, Wood said “they are attracting a new breed of customer.”

Other names in the ETF include Amazon, the “original fintech player,” according to Wood, and Apple because of growth in Apple Pay.

The fund also focused on artificial intelligence, which is being used by start-ups to assess creditworthiness. Companies that don’t use AI for lending, are positioned to lose out in the modern economy, according to Wood. Baidu, Zillow, and LendingTree are also included in the ETF.


Company: cnbc, Activity: cnbc, Date: 2019-02-04  Authors: kate rooney, source
Keywords: news, cnbc, companies, money, digital, technology, fintech, bitcoin, traditional, financial, investors, trend, etf, believe, companies, wood, square, finance, way, going, according


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Fintech companies raised a record $39.6 billion in 2018

Venture capital-backed financial technology companies raised a record $39.57 billion from investors globally in 2018, up 120 percent from the previous year, according to research by data provider CB Insights published on Tuesday. Funding was raised through 1,707 deals, up from 1,480 in 2017, the research said. In the last three months of the year, five companies joined the coveted ranks of fintech “unicorns”, or companies valued at more than $1 billion. Asia saw the biggest jump in number of dea


Venture capital-backed financial technology companies raised a record $39.57 billion from investors globally in 2018, up 120 percent from the previous year, according to research by data provider CB Insights published on Tuesday. Funding was raised through 1,707 deals, up from 1,480 in 2017, the research said. In the last three months of the year, five companies joined the coveted ranks of fintech “unicorns”, or companies valued at more than $1 billion. Asia saw the biggest jump in number of dea
Fintech companies raised a record $39.6 billion in 2018 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-29  Authors: bobyip
Keywords: news, cnbc, companies, raised, billion, research, financial, fintech, 396, funding, companies, record, 2018, deals


Fintech companies raised a record $39.6 billion in 2018

Venture capital-backed financial technology companies raised a record $39.57 billion from investors globally in 2018, up 120 percent from the previous year, according to research by data provider CB Insights published on Tuesday.

Funding was raised through 1,707 deals, up from 1,480 in 2017, the research said.

The surge in funding was due in large part to 52 mega-rounds, or investments larger than $100 million, which were worth $24.88 billion combined, the research said.

A $14 billion investment in Ant Financial, the payment affiliate of Chinese e-commerce giant Alibaba Group Holding Ltd, accounted for 35 percent of total fintech funding alone last year, the research said.

In the last three months of the year, five companies joined the coveted ranks of fintech “unicorns”, or companies valued at more than $1 billion. These include credit card provider Brex, digital bank Monzo and data aggregator Plaid.

Venture capital investors have been pouring billions of dollars into fintech companies, in the hopes that they can gain market share from incumbent financial institutions by offering easier to use and cheaper digital financial services.

Fintechs have emerged globally across all sectors of finance, including lending, banking and wealth management.

While the large rounds minted new unicorns and led funding to hit a record high in 2018, CB Insights estimates these will likely delay initial public offerings.

“IPO activity is likely to remain lackluster in 2019,” the research reads.

Asia saw the biggest jump in number of deals in 2018, growing 38 percent from the previous year and accounting for a record $22.65 billion, according to the study.

In the United States, fintechs raised a record $11.89 billion through 659 investments, while the number of deals dropped in Europe, but funding reached a record $3.53 billion.


Company: cnbc, Activity: cnbc, Date: 2019-01-29  Authors: bobyip
Keywords: news, cnbc, companies, raised, billion, research, financial, fintech, 396, funding, companies, record, 2018, deals


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Square shares fall after Raymond James downgrades stock and predicts nearly 30% retreat

The firm has a $56 fair value price for Square’s stock — roughly 27 percent below where it closed on Monday. The stock has been on a tear over the past year, up 61 percent from last January. The fintech company re-filed its application for an industrial loan company charter in December after pulling it earlier in the year to answer questions from regulators. If approved, Square would also get access to a coveted feature of the banking world — deposit insurance. Revenue upside from some of its ne


The firm has a $56 fair value price for Square’s stock — roughly 27 percent below where it closed on Monday. The stock has been on a tear over the past year, up 61 percent from last January. The fintech company re-filed its application for an industrial loan company charter in December after pulling it earlier in the year to answer questions from regulators. If approved, Square would also get access to a coveted feature of the banking world — deposit insurance. Revenue upside from some of its ne
Square shares fall after Raymond James downgrades stock and predicts nearly 30% retreat Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-29  Authors: kate rooney, yana paskova, bloomberg, getty images
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Square shares fall after Raymond James downgrades stock and predicts nearly 30% retreat

The firm has a $56 fair value price for Square’s stock — roughly 27 percent below where it closed on Monday. The stock has been on a tear over the past year, up 61 percent from last January. In 2019 alone, it’s up 30 percent.

Raymond James is also bearish on Square’s move into banking. The fintech company re-filed its application for an industrial loan company charter in December after pulling it earlier in the year to answer questions from regulators. The move would allow Square to operate without going through outside banks and intermediaries. If approved, Square would also get access to a coveted feature of the banking world — deposit insurance.

“Adding more credit- and bank- related products increases the cyclicality of an already macro sensitive business and would likely be multiple dilutive,” Davis said.

Square is best known for its credit-card processing hardware. But it also has a popular peer-to-peer payment app, the Cash App, has moved into small business lending through Square Capital, and debuteda debit card for small businesses earlier in January.

Revenue upside from some of its newer products is “likely to prove more difficult” this year though, and the fintech company will have to rely on its core businesses, according to Raymond James.

“We believe revenue upside will likely be more muted this year as subs and services will likely once again need to be the driver of significant upside,” Davis said.


Company: cnbc, Activity: cnbc, Date: 2019-01-29  Authors: kate rooney, yana paskova, bloomberg, getty images
Keywords: news, cnbc, companies, raymond, nearly, retreat, small, earlier, company, fintech, square, downgrades, squares, products, fall, predicts, upside, likely, james, stock, shares


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Fintech start-up Acorns valued at $860 million after latest funding round

The six-year-old company announced a Series E funding round on Monday that brings its valuation to $860 million, the company said. The new $105 million cash injection came from Comcast Ventures, NBCUniversal, Bain Capital Ventures, BlackRock, TPG’s Rise Fund, DST and Michael Dell’s MSD Capital. Robo-advisor Betterment, by comparison, has a $700 million valuation, while Wealthfront is valued at $500 million, according to Pitchbook. Irvine, California-based Acorns is best known for saving and inve


The six-year-old company announced a Series E funding round on Monday that brings its valuation to $860 million, the company said. The new $105 million cash injection came from Comcast Ventures, NBCUniversal, Bain Capital Ventures, BlackRock, TPG’s Rise Fund, DST and Michael Dell’s MSD Capital. Robo-advisor Betterment, by comparison, has a $700 million valuation, while Wealthfront is valued at $500 million, according to Pitchbook. Irvine, California-based Acorns is best known for saving and inve
Fintech start-up Acorns valued at $860 million after latest funding round Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-28  Authors: kate rooney, source
Keywords: news, cnbc, companies, products, nbcuniversal, round, startup, old, company, valuation, valued, ventures, latest, acorns, 860, funding, fintech, million


Fintech start-up Acorns valued at $860 million after latest funding round

Investing and savings start-up Acorns is one step closer to a billion-dollar valuation.

The six-year-old company announced a Series E funding round on Monday that brings its valuation to $860 million, the company said. The new $105 million cash injection came from Comcast Ventures, NBCUniversal, Bain Capital Ventures, BlackRock, TPG’s Rise Fund, DST and Michael Dell’s MSD Capital.

NBCUniversal, which is now Acorns’ biggest shareholder, will also receive a seat on the start-up’s board. It will be filled by CNBC Chairman Mark Hoffman. Acorns — which its CEO, Noah Kerner, describes as a “financial wellness system” — also announced it is partnering with CNBC to produce original content.

The new valuation is more than three times what it was after its 2016 fundraising round. It also tops two industry competitors. Robo-advisor Betterment, by comparison, has a $700 million valuation, while Wealthfront is valued at $500 million, according to Pitchbook.

Irvine, California-based Acorns is best known for saving and investing services products, which have ushered in 4.5 million users. One of its five products allows customers to automatically invest the spare change from debit or credit card purchases. If an Acorns user buys a latte for $2.75, the mobile app would round up to the nearest dollar and put that remaining 25 cents into an Acorns investment account, which is then put into professionally managed index funds.

It also has an automated retirement account service called “Acorns Later” that has brought on more than 350,000 investors who have invested $40 million to date, according to the company.

The average Acorns customer is around 32 years old with an income between $50,000 and $60,000. But it has also attracted customers as old as 98, Kerner said. The CNBC partnership is designed to reach an “up-and-coming” financial audience, who are less financially savvy.

Disclosure: Comcast owns CNBC’s parent company, NBCUniversal.


Company: cnbc, Activity: cnbc, Date: 2019-01-28  Authors: kate rooney, source
Keywords: news, cnbc, companies, products, nbcuniversal, round, startup, old, company, valuation, valued, ventures, latest, acorns, 860, funding, fintech, million


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PayPal, Mastercard execs see a ‘huge opportunity’ for tech giants to partner with major banks

Technology firms entering the financial services space shouldn’t be afraid of partnering with the biggest players in the industry, according to two executives. Executives from PayPal and MasterCard said Tuesday that they see partnerships with banks as a way to create new user experiences and solidify customers’ trust. “I think that is a completely false premise,” he told CNBC’s Elizabeth Schulze at the World Economic Forum in Davos, Switzerland. It would be like saying, ‘Well, for smartphone man


Technology firms entering the financial services space shouldn’t be afraid of partnering with the biggest players in the industry, according to two executives. Executives from PayPal and MasterCard said Tuesday that they see partnerships with banks as a way to create new user experiences and solidify customers’ trust. “I think that is a completely false premise,” he told CNBC’s Elizabeth Schulze at the World Economic Forum in Davos, Switzerland. It would be like saying, ‘Well, for smartphone man
PayPal, Mastercard execs see a ‘huge opportunity’ for tech giants to partner with major banks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-22  Authors: ryan browne, manuel blondeau, aoppress, corbis via getty images
Keywords: news, cnbc, companies, paypal, partner, tech, mastercard, win, smartphone, huge, banks, opportunity, execs, major, way, cellular, firms, banking, wini, giants, using, fintech, world


PayPal, Mastercard execs see a 'huge opportunity' for tech giants to partner with major banks

Technology firms entering the financial services space shouldn’t be afraid of partnering with the biggest players in the industry, according to two executives.

Executives from PayPal and MasterCard said Tuesday that they see partnerships with banks as a way to create new user experiences and solidify customers’ trust.

Bill Ready, PayPal’s chief operating officer, said that he often hears from fellow fintech entrepreneurs that banking giants “have to lose” in order for their businesses to be able to win.

“I think that is a completely false premise,” he told CNBC’s Elizabeth Schulze at the World Economic Forum in Davos, Switzerland. It would be like saying, ‘Well, for smartphone manufacturers to win, cellular carriers have to lose.'”

Ready made an analogy for the way fintech firms should look at their banking rivals using the example of smartphone makers and cellular networks.


Company: cnbc, Activity: cnbc, Date: 2019-01-22  Authors: ryan browne, manuel blondeau, aoppress, corbis via getty images
Keywords: news, cnbc, companies, paypal, partner, tech, mastercard, win, smartphone, huge, banks, opportunity, execs, major, way, cellular, firms, banking, wini, giants, using, fintech, world


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