Investors appear to be racing to disperse funds before 2016 comes to an end — and fintechs are benefiting.
In the past week, alt-payment companies have led the pack with eight-figure fund raises from high profile investors. Also filling their piggy banks were security and wealth management startups. Rakuten’s startup fund was involved in two and Fifth Third Bank’s fund made its second investment in as many months.
Kreditech, $10.4 million – A new partnership in Japan?
The hot new European alt-lender added $10.4 million to its war chest from Rakuten’s fintech startup fund, which now joins the likes of Peter Thiel, J.C. Flowers, and Blumberg Capital as backers. Techcrunch reports that Kreditech’s valuation stands around $313 million and is on the upswing.
The Rakuten investment follows a $105 million round in the spring. In a statement, CFO Rene Griemens said “we envision future partnership opportunities. With its strong market position in Asia, Rakuten could be a door opener for us.”
BlueVine, $49 million; credit maximum quadruples
BlueVine raised $49 million in capital from a group of investors, including Rakuten’s financial startup fund, which also announced an investment in Kreditech this week. BlueVine specializes in invoice financing and raised $40 million earlier this year. The company will use the funds to expand – it expects to provide $500 million in financing in 2017 from the current $200 million. The firm is also raising the maximum limits on credit lines, the result of client demand. The maximum for invoice factor will rise to $2 million from $250,000 and lines of credit will double to $100,000.
Othre investors include Silicon Valley Bank, Lightspeed Venture Partners, CitiVentures, 83North and Menlo Ventures.
ApplePie Capital, $16.5 million and $180 million loan purchase pact
Fifth Third Capital participated in its second venture round in two months with a $16.5 million Series B Round in ApplePie Capital, an online franchise lender. Last month, Fifth Third announced a strategic investment in AvidXchange, an accounts payable management solution. Look for some future partnerships between ApplePie and Fifth Third. QED Investors led the round, increasing its stake in the company.
Separately, ApplePie Capital reported it has entered an $180 million loan purchase agreement with TowerBrook Capital Partners, LP to buy franchise loans originated by ApplePie over a two-year period.
Personal Capital, $25 million – Series E, Part II – hitting aggressive growth goals early
Personal Capital hit its bogey and came up a winner — $25 million in an add-on investment to IGM Financial’s earlier $50 million investment back in May. That investment doubled the valuation of Personal Capital from two years earlier to $500 million.
Personal Capital rang up the investment because it hit a growth milestone early, adding $1.5 billion under management, bringing total assets to $3.4 billion – 80% growth in less than 12 months. The original goal was 2017.
IGM Financial is Canadian financial services company is part of Power Financial Corporation. Personal Capital combines online wealth management tools with financial advisors who help users set goals.
In addition, Personal Capital says Silicon Valley Bank has extended $25 million in credit.