Category: Startup

Copilot’s growth surges with Mint’s end, securing a $6M Series A fund.

As Intuit announces the closure of its budgeting application Mint this week, competitor Copilot is witnessing a surge in its user base, attributing the shift to a growing consumer demand for more comprehensive finance management tools. Founded in New York by CEO Andrés Ugarte in January 2020, Copilot emerged as a subscription-based alternative to Mint, aiming to offer enhanced personal finance tracking and analysis. Today, the app boasts over 100,000 subscribers, many of whom engage with the app daily, while around 20% qualify as “heavy users,” accessing it up to ten times per day.

Ugarte shared with TechCrunch that the success of Copilot, especially in a landscape dominated by social networking apps, highlights the unique value it brings to the personal finance app market. Unlike its predecessors, Copilot focuses on presenting users with relevant spending and saving insights, tailored to their preferences in budgeting and financial goals. The app’s ability to help users save an average of 5% annually has effectively put back half a billion dollars into their pockets.

The genesis of Copilot was fueled by Ugarte’s personal experiences with Mint and other finance apps, which he found inadequate for modern financial management needs. His vision was to develop an app that not only simplifies account integration—averaging about ten accounts per user—but also utilizes the accumulated data to offer actionable insights.

The announcement of Mint’s shutdown on November 2 catalyzed significant growth for Copilot, marking its most successful day in terms of new user acquisition. This momentum has led to exponential growth, surpassing the company’s achievements in the preceding four years. This growth spurt enabled Copilot to secure a $6 million Series A funding round, spearheaded by Nico Wittenborn of Adjacent, and increase its total venture capital to $10.5 million.

Copilot, which achieved profitability in 2023, is now expanding its services to include Android and web platforms in response to consumer demand. This expansion, alongside investments in AI and product development, underscores the company’s commitment to enhancing user experience. Particularly, Copilot is exploring the integration of machine learning and chat interfaces to provide users with personalized finance conversations directly within the app, aiming for a comprehensive rollout by year-end.

The narrative of Copilot’s ascension in the wake of Mint’s closure encapsulates a larger trend in the financial tech industry, where the demand for intuitive, personalized finance management solutions is increasingly shaping the market’s future.

World Fund secures €300M for climate tech, focuses on hardware investments.

Berlin, Germany – In an impressive showcase of resilience and commitment to environmental sustainability, World Fund, a venture capital firm rooted in the ethos of decarbonization, has successfully closed its first fund at €300 million. Founded by the innovative minds behind the Ecosia search engine, known for using search query revenues to plant trees, World Fund embarked on this journey with an ambitious target of €350 million in 2021. Despite falling short by €50 million, the achievement is significant amidst a backdrop of global unrest, economic fluctuations, and a challenging fundraising landscape.

Danijel Višević, a managing partner at World Fund, highlighted the adversities faced over the past three years, including the war in Europe, rising interest rates, and the cautious approach of Limited Partners (LPs). “2023 presented a super hard fundraising environment,” Višević remarked, emphasizing the rigorous journey to this successful close.

The fund’s strategic focus is on pioneering decarbonization technologies, allocating over two-thirds of its capital to follow-on investments. This approach aims to address the gap in later-stage funding within Europe, particularly for ventures requiring significant hardware components. “Europe needs to refocus on hardware for climate,” Višević stated, underscoring the critical role of hardware in combating climate change. The fund also invests in expertise, including biotech and biochemistry, to thoroughly evaluate potential investments.

Already, World Fund has made notable investments in several climate tech companies, including IQM Quantum Computers, Space Forge, and Planet A Foods, among others. With the newly acquired €300 million, World Fund plans to expand its portfolio with 25 to 30 additional investments in European startups focused on decarbonization.

Support for World Fund’s vision comes from an array of backers, including a €50 million contribution from the European Investment Fund. Other investors include KfW Capital, Wachstumsfonds, Bpifrance, PwC Germany, NRW.BANK, and Ignitis Group, alongside pension funds like the U.K. Environment Agency Pension Fund and Croatia’s Erste Plavi.

 

This fundraising milestone arrives at a pivotal time for European climate tech startups, which raised over $20 billion in 2023, maintaining the momentum from the previous year. Countries like the U.K., Sweden, and Germany lead in climate tech venture capital, with emerging growth in nations such as Iceland, Lithuania, and Bulgaria. The sector remains robust, with valuations holding steady and a 15% year-over-year increase in European energy-related patents.

Founded in 2021 by Daria Saharova, Višević, Tim Schumacher, and Craig Douglas, World Fund operates from its bases in Berlin, Munich, Cologne, and Amsterdam, poised to drive forward the mission of environmental sustainability through innovative technology investments.

Nigerian fintech startup Zone secures $8.5 million in seed funding to expand its decentralized payment platform

African financial ecosystems have been increasingly embracing a blend of indigenous and international technologies to enhance their offerings. At the forefront of this innovation wave is Appzone, a local fintech powerhouse renowned for supplying banks and fintech companies with software solutions that offer competitive pricing and superior flexibility.

Over a Decade of Pioneering Financial Solutions

Founded over ten years ago and headquartered in Nigeria, Appzone has emerged as a pivotal force in the realms of banking and payments. The company specializes in the development of both custom software and Software-as-a-Service (SaaS) products, catering to an impressive roster of over 18 commercial banks and more than 450 microfinance institutions throughout Africa, with a notable presence in Ghana and Kenya.

In 2022, the founders Emeka Emetarom, Obi Emetarom, and Wale Onawunmi ventured into a bold new direction by integrating blockchain technology with traditional banking and payment systems. This strategic pivot led to the rebranding of the company to Zone, which now operates as a fully licensed, blockchain-enabled payment infrastructure firm. In parallel, the original banking-as-a-service operations were spun off into Qore, an independent entity. Zone’s latest achievement is securing $8.5 million in seed funding to fuel its growth.

Zone: Bridging the Future of Payments in Africa

Zone’s strategy is simple yet revolutionary. It seeks to address the inadequacies of Africa’s current payment infrastructure in supporting a seamless transition to a digital economy. By leveraging blockchain technology’s scalability, Zone is creating an interoperable payment platform that links banks and fintech firms, facilitating direct transaction flows without the need for intermediaries.

Subheading: A Closer Look at Zone’s Innovations and Impact

The Evolution from Appzone to Zone

  • Blockchain Integration: In a strategic shift, Appzone embraced blockchain technology to enhance legacy banking and payment systems, resulting in the formation of Zone.
  • Rebranding and Focus: The transition to Zone highlighted a deeper focus on blockchain technology, positioning the company as a leader in Africa’s payment infrastructure landscape.

Pioneering Africa’s Payment Infrastructure

  • Regulated Blockchain Network: Zone has distinguished itself as Africa’s first regulated blockchain network dedicated to payments, attracting major banks across the continent.
  • Interoperable Platform: By developing a blockchain-based payment infrastructure, Zone enables seamless transactions between banks and fintech entities, eliminating the need for traditional intermediaries.

The Technology Behind Zone’s Success

  • Licensed Switching Capabilities: Zone obtained a crucial switching license from the Central Bank of Nigeria, integrating with the Nigeria Inter-Bank Settlement System for optimal interoperability and swift fund transfers.
  • Direct Card Routing (DCR): This innovation allows for direct connections with card issuers, streamlining POS transactions and enhancing reliability for consumers and merchants alike.

Financial Institutions Embrace Zone

  • Wide Adoption: Over 15 of Africa’s largest banks have joined Zone’s network, with seven already processing domestic transactions through various channels, including ATMs, POS, and direct debit.
  • Implementation Stages: Despite the complexity of onboarding, eight banks are in the midst of integrating Zone’s solutions, underscoring the platform’s potential to revolutionize the banking sector.

 

  • New Use Cases and Functionalities: Zone plans to expand its offerings, including POS transactions, to incorporate fintech companies and improve financial transaction efficiency across the board.
  • Instant Reconciliation and Settlement: Leveraging blockchain technology, Zone aims to introduce immediate reconciliation and settlement features, addressing longstanding issues of transaction delays and chargeback fraud.

Zone’s Milestones and Financials

Year Milestone Financial Highlight
2022 Integration of blockchain technology; Rebranding to Zone Raised $8.5 million in seed funding
2023 Secured over 15 major bank partnerships Processed transactions for over 10 million cardholders
2024 Launch of new POS use cases and functionalities Aiming to process over $1 million in ATM transactions in Q1

The narrative of Zone is not merely about technological advancement but a testament to the transformative power of innovation in reshaping the financial landscape of Africa. By facilitating a more interconnected and efficient payment ecosystem, Zone is setting new standards for speed, reliability, and cost-effectiveness in financial transactions.

  • First Regulated Blockchain Network for Payments: Zone’s establishment as the first regulated blockchain network in Africa for payments marks a significant milestone, offering unprecedented security and transparency in transactions.
  • Significant Bank Partnerships: The collaboration with over 15 of the continent’s largest banks, including the processing of transactions through various channels, underscores the trust and reliability vested in Zone’s platform.
  • Innovative Financial Solutions: From launching new use cases to integrating large fintech companies, Zone’s continuous innovation drives forward the financial sector’s evolution in Africa.

The journey of Appzone to Zone encapsulates a broader narrative of African innovation, where local solutions are not only competing but also leading in the global tech arena. Through strategic rebranding, embracing blockchain technology, and securing a place as a regulated payment infrastructure provider, Zone is poised to revolutionize the way transactions are conducted across the continent. With its recent funding and ambitious plans for expansion, Zone stands at the forefront of Africa’s march towards a more inclusive, efficient, and digital financial future.

Kaedim secures $15 million in funding for AI-driven 3D asset creation technologies

Kaedim, a company providing innovative tools to simplify the creation of 3D content, recently secured $15 million in Series A funding. The firm debuted a new AI-driven marketplace, boasting an initial offering of 10,000 3D assets, including contributions from users. The influx of funds will support the enhancement of Kaedim’s platform, as well as facilitate growth in its team and reach.

The investment round was spearheaded by A16z Games and saw contributions from the Pioneer Fund, alongside notable investors such as Scott Gelb (ex-President of Games at Riot Games), Nate Mitchell (co-founder of Oculus), Eden Chen (CEO of Pragma), and Siqi Chen (CEO of Runway), among others.

In its quest to empower creators in the realm of 3D asset creation, Kaedim introduced a series of innovations. These include a comprehensive suite of tools designed to complement, not replace, the work of artists. The suite encompasses a 3D workflow solution compatible with current industry standards like Unreal and Blender, a collection of intelligent enhancements for 3D modeling workflows, including automated UV mapping, and a bespoke service for creating tailored 3D assets utilizing Kaedim’s proprietary machine learning technology, among other advanced features.

Konstantina Psoma, the CEO of Kaedim, highlighted the significant advancements in 3D technology over the past five years across various sectors, such as e-commerce, gaming, 3D printing, and AR/VR. She remarked, “We are facilitating the next evolution in 3D content creation, drawing parallels to the impact of DALL-E on 2D imagery and concept art.”

Griffin, a startup specializing in ‘Banking-as-a-Service’, secures $24 million in funding upon obtaining its complete banking license.

Griffin Bank, a banking-as-a-service (BaaS) platform headquartered in the U.K., has recently secured a banking license, marking a significant milestone in its journey. Established by former Silicon Valley engineers, the company obtained approval from the U.K.’s financial regulators, including the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA), after a year-long application process.

This achievement is noteworthy, especially in comparison to Revolut, a prominent U.K. fintech, which has struggled to obtain a banking license despite years of effort. Griffin’s swift approval contrasts with the industry norm, as only a small percentage of companies typically progress to the application submission stage within a similar timeframe.

Griffin now offers a comprehensive platform for fintech companies, enabling them to provide banking, payments, and wealth management solutions seamlessly. While it’s less inclined to offer banking services directly to consumers, Griffin targets businesses seeking embedded financial solutions such as savings, safeguarding accounts, and client money management.

Investors have shown confidence in Griffin’s potential, evident from its recent funding rounds. With a total of $52 million raised since its inception in 2017, the company secured an additional $24 million in its extended Series A round, led by prominent investors like MassMutual Ventures and NordicNinja.

Griffin’s founders, David Jarvis and Allen Rohner, bring substantial expertise to the table, with backgrounds in pioneering tech companies like Standard Treasury and CircleCI. They emphasize Griffin’s tech-centric approach, leveraging ClojureScript to build robust systems tailored to modern banking needs.

The emergence of fintech companies like Griffin signifies a shift towards “embedded finance,” where financial products seamlessly integrate into non-financial services, enhancing customer value and generating new revenue streams. This trend aligns with the growing banking-as-a-service sector, projected to reach $66 billion in value by 2030, with companies like Treasury Prime and Synctera securing significant investments.

Jarvis underscores Griffin’s differentiation from traditional banking and non-regulated financial services, emphasizing the importance of its banking license in providing tangible benefits to customers, such as earning interest on funds. The company aims to capitalize on opportunities across various sectors, targeting businesses mandated to hold funds in designated accounts, including accountants, solicitors, and property management firms.

Overall, Griffin’s focus remains on capturing market share and delivering value through its tech-driven banking-as-a-service platform, positioning itself as a key player in the evolving landscape of embedded finance.

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