Market Insights

Blend snags $130M, MX raises $100M, GreatHorn secures $13M: Friday Deal Book for 6/28/2019

June 28, 2019

The Friday Deal Book is back! This week saw some major investment activity in the financial services sector, with Blend raising $130 million and MX raising $100 million. Both companies focus on streamlining financial management processes and aggregating disparate data in order to improve customer experience and efficiency. Key takeaway: as regulations evolve and become more restrictive, companies are investing heavily in solutions for thorough yet low-friction data collection and analysis.

 

The Top Deals Covered by OWI this Week

 

Blend \ blend.com \ Founded in 2012

Developer of a digital lending platform intended to simplify and fasten consumer finance processes. The company’s machine-learning based platform uses verified source data to build a consumer’s complete financial profile, automates third-party verification to reduce fraud, identifies delay-causing issues and manage the tasks needed to close a loan, enabling financial institutions to process lending faster, increase productivity and deliver exceptional customer experiences.

The company raised $130 million of Series E venture funding in a deal co-led by General Atlantic and Temasek Holdings on June 24, 2019, putting the company’s pre-money valuation at $850 million. Lightspeed Venture Partners, Founders Fund, Greylock Partners, and 8VC also participated in the round. The funds will be used to grow the company’s team of nearly 400 employees, invest in new technologies, grow its ecosystem of partners and further its expansion into a broader suite of consumer lending products.

 

MX \ data.mx.com \ Founded in 2010

Developer of a data platform intended to improve financial management. The company’s platform features data enhancement and aggregation, mobile banking, financial data API, personalized marketing, account and identity verification and personal finance management, enabling financial institutions to collect, enhance, analyze, present and act on financial data in order to increase digital engagement, deposits and NPS scores.

The company raised $100 million of Series B venture funding in a deal led by Battery Ventures on June 25, 2019, putting the company’s pre-money valuation at $399 million. USAA Ventures, Sorenson Ventures, Washington Federal Bank for Savings, National Bank of Canada, H.I.G. Growth Partners, Point72 Ventures, TTV Capital, Commerce Ventures, Digital Garage, Pelion Venture Partners, Cross Creek and Industry Ventures also participated in the round. The funds will be used to forge new partnerships, develop innovations and accelerate the company’s hiring efforts.

 

GreatHorn \ greathorn.com \ Founded in 2015

Developer of a cybersecurity platform designed to prevent phishing attacks by automating the cycle of email security. The company’s platform provides adaptive, anomaly-based threat detection that secures email from malware, ransomware, executive impersonations, credential theft attempts, business services spoofing and other social engineering-based phishing attacks, enabling organizations to secure their communications across multiple channels.

The company raised $13 million of venture funding in a deal co- led by RRE Ventures and .406 Ventures on June 26, 2019. Uncork Capital, V1.vc and Techstars also participated in the round. Of the total amount, $461,942 was originally raised in the form of convertible debt and subsequently converted to equity. The funds will be used for expansion into the enterprise market. 

 

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Investor Highlight

 

Emergence Capital Partners \ www.emcap.com \ Founded in 2003

Description of Investor

Emergence Capital Partners is a venture capital firm based in San Mateo, California. The firm seeks to invest in early and growth stage technology-enabled enterprises. The firm prefers to invest in the mobile, digital health, advertising technology, information service, enterprise cloud, software as a service (SaaS), business services, and financial technology sectors.

Active Portfolio – 48

Investments – 12

Med. Round Amount – $11.25M 

Med. Valuation – $54.80M

# of Exits – 55

Deal History

In the past year, Emergence Capital Partners has invested in the following 5 identity companies:

Blend

Handshake (acquired by Shopify)

Janrain (acquired by Akamai Technologies)

Guru

OpenPath

*Data acquired using PitchBook with proprietary keyword searches set by OWI Analysts