#520
Happy Holidays from FinTech Collective!

• CapIntel launched OMNI, a holistic wealth management platform for financial services professionals as they doubled down on US expansion.

• Centrifuge launched CF Prime, a comprehensive suite of services and technologies that helps easily onboard and scale a portfolio of real-world assets (RWAs).

• Constrafor grew over 700% YoY on their mission to offer procurement solutions for GCs and accelerated payment solutions for subcontractors.

• Daisy announced their 100th building partnership on their mission to take a tech-driven approach to reshape how buildings are managed, as the fastest growing property manager in NYC.

• Fondeadora finalized SOFIPO acquisition, one of ~40 junior banking licenses in Mexico, to expand its portfolio of products and services to more digital financial solutions.

• GoGoPool launched the first staking primitive for subnets on Avalanche, and is the fastest growing protocol on the Avalanche network with 150 active minipools and 250k AVAX staked.

• Mattilda raised a $19m Series A round and partnered with Santillana, the largest academic content platform in the Spanish speaking world, servicing over 2m students in the region.

• Minu secured their neo voucher license, becoming the only early wage access company in Mexico to offer the trifecta of pay on demand, employee benefits, and vouchers.

• Mondu successfully secured licensing with the FCA to take on the UK's $200 billion e-commerce market. Mondu now has offices in Berlin, Amsterdam and London.

• MoneyLion stock has surged 55% on the back of strong 2023 performance.

• Nexu raised a $20m Series B round to continue expanding its financing platform for car dealerships across Mexico.

• Pemo onboarded 1000+ businesses in less than a year of go live as a Mastercard Direct partner.

• Performativ marked FTC’s first European investment in Copenhagen, raising a €5.5m Seed round for their software solution revolutionizing Europe’s wealth management industry.

• Rainbow Wallet launched a mobile browser extension, also expanding into Brazil to support PIX payments.

• Sabi raised Series B funding on top of a year of incredible growth, surpassing $1b in GMV as Africa’s digital commerce infrastructure.

• Simetrik expanded beyond LatAm into India and Southeast Asia, becoming a global provider of reconciliation solutions to payments companies and financial institutions.

• Termii acquired a regulated MVNO, received approval for their VAS license, and secured their first enterprise customers including Bytedance and NIBBS.

• Vestwell crossed the billion dollar valuation mark with their Series D funding, and was selected to power J.P. Morgan’s 401(k) workplace savings platform and the New Jersey State Auto-IRA program, adding to its roster of more than 30 state savings programs.

• Violet launched Mauve, the first RWA-focused, fully AML-compliant, and VASP-registered non-custodial exchange.

• Ziina became the only non government affiliated entity to secure Federal Central Bank regulation in the UAE.

• The London legacy begins! This year we brought on Toby Triebel as our newest partner to head our European efforts, and promoted Samantha Wulfson to round out the team in FTC’s newest HQ.

• We hosted our 11th Annual Meeting of CEOs and LPs at the Wythe in Brooklyn, with over 150 people in attendance. Michael Morell, the former Acting Director of the CIA joined us to discuss decision making in high consequence environments - in many cases, with limited information - during his thirty-three year career at the Central Intelligence Agency during which he navigated numerous crucible moments in the geopolitics of the 21st century. You can hear the conversation here on Spotify.

Everything Everywhere All At Once - March 2023
Previously, increased credit card use indicated financial stress, but Gen Z feels no such strain. They’re financially motivated and are benefiting from recent events like the pandemic and a tight job market which has boosted entry-level salaries. The Bank of America Institute notes that 75% of Gen Z have considered additional income channels like a second job. Their actions and youth reflect a commitment to having everything, everywhere, all at once, mindful of the "Breakfast Club" adage: "When you grow up, your heart dies.”

Bigger is Not Always Better - March 2023
In 2019, during a wave of payment industry mergers, FIS acquired WorldPay for $43b. This move aimed to counter margin compression by integrating banking systems with payment processors, expanding merchant networks and adding products like POS, cards, and credit for retail and SMBs. However, by March 2023, FIS was planning to divest WorldPay for almost half of what it paid. This highlights their struggle to compete with fintech companies in digital payment solutions, emphasizing that bigger isn't always better.

Cash is No Longer King - January 2023
Bank robberies and tax evasion, prevalent in cash-based societies, are declining in countries like Denmark where a shift away from cash led to zero bank robberies in 2022. In contrast, the cash-loving US experienced an increase in bank robberies and attacks on armored cars. Elsewhere, Nigeria now investigates government cash account withdrawals for money laundering to combat fraud (and potentially discourage cash usage). The transition to digital finance introduces new challenges, signaling that financial crime, though evolving, is far from eradicated.

[Fed]Now We're Talking - July 2023
FedNow, the Federal Reserve’s instant payments system, launched with participants spanning banks, credit unions, federal bureaus, and over a dozen other private providers like FIS and Jack Henry. Sounds great, right? Although it promises enhanced liquidity and reduced friction in digital payments, the system's fast processing raises concerns about fraud detection. Questions linger about keeping pace with risk and compliance, costs, widespread adoption, and the potential for unforeseen exploits.

Liquidity for Canned Liquids - July 2023
Liquid Death, known for its edgy canned water, plans to go public next year with Goldman Sachs leading the IPO. Despite its popularity, including 240 superfans with tattoos, the company's profitability is uncertain – it was unprofitable in 2022 and had a 12% gross margin. This move signals a revival in the IPO market after years of stagnation, potentially ushering in major deals from companies like Arm, Stripe, and Instacart, and revitalizing the late-stage VC financing landscape.