Market Insights

The Money Movement: Friday Dealbook for 7/24/2020

 

July  24, 2020 – Digital identity and financial services go hand in hand, and this week’s featured deals and investor reflect this growing connection: Hummingbird raised $8.2 million of Series A funding for its AML/CFT services; Quantexa, which uncovers hidden customer relationships to minimize fraud, won $65 million; and Plum, a personal savings assistant reliant on open banking, brought in $10.1 million.

Aside from the deals at hand this week, we’ll take a deep dive deeper into deals like those included here at our first-ever Investing in Identity Digital Forum this coming Tuesday, July 28th. (If you’re reading this, you should be there, nudge…nudge…)

The financial inclusion movement is strong enough to warrant funds dedicated to improving the market segment: this week’s featured investor, Flourish Ventures, specifically invests in entrepreneurs whose technologies and innovations help underserved and underbanked populations achieve financial health and prosperity.


If you are interested in learning more about these deals and deals like them, contact us.

We are identity nerds. We love this stuff.


The Top Deals Covered by OWI this Week

Hummingbird \ hummingbird.co \ Founded in 2016

Owner and operator of a finance company intended to enhance anti-money laundering and counter-terrorist financing investigations. The company’s services reduce cumbersome paperwork, provide insightful analytics, and enable collaboration for compliance professionals and law enforcement agents, enabling users to defend themselves against cyber-financial crimes.

The company raised $8.2 million of Series A venture funding in a deal led by Flourish Ventures on July 16, 2020. TTV Capital, Homebrew, Designer Fund, Lachy Groom, and Jon Zieger also participated in the round. The funds will be used for the expansion into new practice areas, including transaction disputes and consumer protections in lending; continue the company’s operational growth; and enter the European market, starting with Ireland and the U.K. 

Quantexa \ quantexa.com \ Founded in 2016

Developer of entity resolution and network analytics technology designed to improve the quality of data-driven decisions. The company’s technology uncovers hidden customer connections and behaviors while using big data and artificial intelligence, thereby enabling clients to solve major challenges in financial crime, customer insights, and data analytics.

The company raised $65 million (EUR 56 million) of Series C venture funding in a deal led by Evolution Equity Partners on July 23, 2020. HSBC Strategic Innovation Investments, AlbionVC, Accenture Ventures, ABN AMRO Ventures, British Patient Capital, and Dawn Capital also participated in the round. The funds will be used to accelerate product innovation roadmap and enable the company to invest further into Europe, North America, and Asia Pacific regions, as well as expand into new locations.

Plum \ withplum.com \ Founded in 2016

Developer of a personal saving assistant platform designed to simplify money saving. The company’s artificial intelligence and behavioral economics-based platform monitors users’ accounts on a regular basis in order to automate savings and investments as well as provides actionable insights on expense management, enabling users to save money, reduce expenses and manage their finances.

The company raised $10.1 million (EUR 8.7 million) of venture funding in a deal led by EBRD Venture Capital Investment Programme and Global Brain on July 21, 2020. VentureFriends and the Government of UK also participated in the round. Of the total amount, $3.13 million (EUR 2.7 million) was raised in the form of convertible debt. The funds will be used to support the company’s exponential growth across Europe and further develop its platform as the center for people’s financial life.

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Investor Highlight

Flourish Ventures \ flourishventures.com \ Founded in 2019

Founded in 2019, Flourish Ventures is a venture capital firm based in Redwood City, California. The firm seeks to invest in the banking, consumer lending, data and analytics, digital payments, insurtech, personal finance, regtech, and infrastructure sectors.

Active Portfolio – 29

Investments (TTM) – 19

Med. Round Amount – $5.80M

Med. Valuation – $48.00M

# of Exits – 30

Deal History

In the past year, Flourish Ventures has invested in the following 9 identity companies:

Alloy

EarnUp

FairMoney

Hummingbird

Indifi

Kaleidofin

SeedFi

Shubh Loans

ZestMoney

*Source: PitchBook Data Inc. with proprietary keyword searches set by OWI Analysts