Industry Archives: Financial Services


Southern California SaaS Business Seeks Series A Investment

This southern California company is a very profitable and has a high growth growth rate based upon SaaS financial technology. The Company is seeking $2M in a Series A.

Business Summary
Very profitable (72% of revenue) $1,625,000 annual EBIT
Very cash positive
80% actual growth, higher projected growth
Proprietary – patents and technology, copyrights and trademarks
Huge SaaS asset management market
Recurring monthly revenue
Very high gross margins
Strong technology talent and management

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Siberian high tech company teams up with Singapore’s HaxAsia to launch local “fund-accelerator”

East-West Digital News
Just one year after Russia saw the launch of its first hardware accelerator, DI Group, a Tomsk, Siberia-based high tech group, has launched a “venture fund-accelerator” targeting startups in the fields of smartphones, electronics, gadgets and Internet projects.
The acceleration program of up to six months encompasses the industrial design and the marketing aspects of each project, reported local innovation portal The “venture fund-accelerator” may invest up to 8 million rubles (approximately $120,000 at the current exchange rate) in a start-up, in addition to helping teams launch crowdfunding campaigns.
The “venture fund-accelerator” enjoys the support of the RVC Seed Fund and Singapore’s hardware accelerator HaxAsia. Tomsk startups will thus receive the support of experts from Singapore, the USA and other countries.
The “fund-accelerator” is being managed by DI-Group President and HaxAsia co-founder Igor Kovalev.
Among HaxAsia’s other Russian is seed-stage fund SpinUp Partners, which invested in the accelerator last year.
This story first appeared in East-West Digital News, a leading online resource on Russian digital industries.

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YC-Backed True Link Raises $3.4M in Funding To Expand Debit Card, Financial Services To The Elderly

shutterstock_134416949 True Link, a startup that emerged from Y Combinator to protect the elderly from financial fraud, just raised $3.4 million from a group of investors including Cambia Health Solutions. While Cambia isn’t a traditional Sand Hill venture investor, they are a multi-billion dollar health insurer from the Pacific Northwest that is branching out into investing in health and wellness startups.… Read More

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AM&AA’s 2015 Winter Conference January 27-29, 2015, Las Vegas, NV

As the US economy finally begins to find traction in the wake of the financial crisis, the mergers and acquisitions landscape is slowly thawing as well. Sellers, buyers, and lenders – who reacted to the downturn by pulling in their oars – are starting to return to the marketplace. Smart investment bankers, private equity firms, and other deal-making professionals are finding ways to use M&A to add value for companies, investors and the economy.
Dan Rubinetti
Director of Sales, Summit
+1 212-557-7488
[email protected]

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Russia’s Flint Capital invests $6.2 million in European data-driven consumer lending technology

East-West Digital News
Cream Finance, a European company that provides short-term consumer loans, has raised $6.2 million (€5 million, both debt and equity) from Flint Capital, a globalized Russian venture fund launched last year.
Founded in 2010, Cream Finance is the parent company of CreditOn, LendOn, and CreditOne, consumer credit services that operate in Latvia, Czech Republic, Poland, Georgia, and Slovakia. Cream Finance uses data to quickly evaluate, score, and make short-term loans to its customers.
The startup also uses technology to automate as much of its process as possible to speed up its lending to consumers. ”The future will see our algorithm become a self-teaching, adaptive scoring system, which will shrink manual input to a minimum with the best possible results for maximizing profit,” believes CTO Markus Kranner.
The company claims to serve several thousand customers and to have tripled its revenue in 2014. The average loan it disburses is for €142.8 ($114) at an average term length of 25.2 days.
“Flint’s investment will allow us to increase our product portfolio and will facilitate expansion into new markets like Southeast Asia,” said Davis Barons, co-CEO of Creamfinance.
“In the future, we intend to become a one-stop mobile shop for loans, instalment loans and plastic cards,” he added.
This story first appeared in East-West Digital News, a leading online resource on Russian digital industries.

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Benelux M&A and Private Equity Forum 2015, Amsterdam, February 15

Mergermarket is delighted to announce that its Benelux M&A and Private Equity Forum is back and will be taking place in Amsterdam on 12 February. This half-day forum will feature an expert line-up of speakers who will provide an overview of the M&A deal market in the Benelux region as well as an in-depth outlook into the key investment opportunities likely to be seen in the region over the next 6-12 months.
Key topics:

  • What has been the experience of Dutch domestic companies expanding into international economies?
  • Overcoming increased regulatory scrutiny, shareholder activism, tax structuring and due diligence
  • Identifying the right time to put available capital to work and the means of doing.

Matthew Robinson
[email protected]
+44 (0) 207 010 6330

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Euromoney buys 15.5 pct stake in Dealogic for $59.2 mln

Nov 5 (Reuters) –
Euromoney Institutional Investor Plc
* Acquisition and disposal
* Signed a binding agreement to acquire a strategic shareholding in Dealogic, a leading provider of data and analytics to global investment banking sector
* Dealogic’s long-serving CEO Tom Fleming will continue in his leadership role
* Acquiring a 15.5 pct equity stake in a company incorporated by Carlyle Group to acquire Dealogic Holdings Plc
* Is acquiring 15.5 pct of equity of new Dealogic for $59.2 million
* Co will be entitled to a seat on new Dealogic board and to 20 pct of voting rights in respect of new Dealogic’s equity
* This investment fits Euromoney’s strategy of expanding scope of its activities in global financial information and analytics sector
* Euromoney will have ability to invest pari passu with Carlyle in any acquisitions that new dealogic may pursue over coming years
* Investment will be funded through sale of its interests in two businesses, Capital Data and Capital Net
* Transaction will be structured as leveraged buyout by new Dealogic
* Carlyle will be controlling shareholder in new Dealogic
* Transaction values Euromoney’s participation in these two businesses at $85 million
* Has agreed to cap consideration it may receive on possible future sale of investment in Dealogic at 24.9 pct of its market capitalisation

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Life.SREDA launches new international fintech fund with $100 million target

East-West Digital News
Yesterday Life.SREDA, a Moscow-based venture fund focusing on mobile and online fintech startups, announced plans to launch a second, internationally oriented fund of $100 million.
Existing Life.SREDA backers have already provided one fifth of the target amount, or $20 million, for the new fund. Further fundraising talks are being held with several large banks and telecom operators, including Chinese, Hong Kong and Singaporean organizations.
Following the invest-abroad trend among Russian investors, Life.SREDA II will focus on US and European fintech projects with just around 10% of the funding allocated to Russian projects. The average check for each investment is expected to be in the range of $5-10 million.
It is assumed that the backers of Life.SREDA II will not only provide funding but will also contribute to the international development of its portfolio companies.

Life.SREDA was launched in September 2012 with an initial capital of $10 million as the venture arm of Life, a Russian financial group comprising sizable Russian banks. In two years, the fund has invested over $40 million into a number of fintech startups from Russia and other countries.

Life.SREDA’s first investment went to Instabank, a financial mobile startup. Then the fund invested $1.5 million in, a Russian mobile apps builder for laymen; $2.6 million in Russian mobile acquiring startup Life-Pay in December 2012; and $2 million in Moven, a New York based money-management service, in August 2013. In December 2013, the fund also invested $730,000 in, a platform enabling online private fundraising by friends and families for fulfilling personal wishes.
Several other deals followed, including, this past summer, a $1.5 million capital injection in Advice Wallet, a Ukrainian startup which develops a mobile payment service called Settle.
Life.SREDA celebrated its first exit in March 2014, when Spanish bank BBVA acquired Simple, an innovative banking app operating on the US market, for no less than $117 million. Life.SREDA announced a 180% return on investment in this operation.
“By launching Life.SREDA II, we are aiming at large banks that want to transform themselves to keep up with the increasingly innovative technological marketplace. It is more profitable for them to acquire a fully baked fintech startup rather than create innovations on their own. We’re seeing a truly global opportunity in finfech, starting in the USA – as Simple proved – and then spreading throughout the world,” Life.SREDA Managing Partner Vladislav Solodkiy stated.
“As far as Asia is concerned, the level of retail bank services and their innovation in China, Singapore and Honk Kong can be compared with Russia; the banks require further technological and service development,” he added in a bid to attract Asian partners to the new fund.
Among the other investors on the Russian fintech scene are Ocean Bank and QIWI, two major payment operators that have launched their own corporate venture investment programs last year.
This story first appeared in East-West Digital News, a leading online resource on Russian digital industries.

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US SEC needs new standards for investing in private deals -panel

WASHINGTON, Oct 9 (Reuters) – – U.S. regulators should revisit 1980s-era rules designed to prevent people with limited financial literacy from investing too much of their nest eggs in risky private stock deals, an advisory panel said on Thursday.

The U.S. Securities and Exchange Commission’s Investor Advisory Committee said the SEC should consider imposing limits on who is allowed to invest based on a person’s financial sophistication and experience in trading and investing.

The panel said that approach might make more sense then the current standards, which draw the line by using income and net worth thresholds. Some say these thresholds are arbitrary, and raising them could still put people at risk because even some wealthy stock market investors may lack financial sophistication to navigate tricky private stock deals.

The SEC will now consider the panel’s proposal, which takes aim at how the SEC currently defines who is considered to be an “accredited investor.”

The critical definition determines who can invest in private offerings of stock that are typically subject to less financial disclosure, and thus are riskier.

The rule states that to qualify as an accredited investor, an individual must have a net worth of $1 million, excluding the value of a primary residence, an individual annual income over $200,000 or a combined household income of $300,000.

Since the rule was written in the 1980s, the SEC has tinkered with the definition only once. The commission excluded the home value in the net worth calculation in late 2011, after the change was mandated by the 2010 Dodd-Frank Wall Street reform law.

The Dodd-Frank law also requires the SEC to review the definition every four years. SEC Chair Mary Jo White said on Thursday such a review is currently underway.

Since Dodd-Frank was enacted, a second law, known as the 2012 Jumpstart Our Business Startups Act, relaxed some rules governing private security deals.

Such deals can now be broadly advertised by companies and funds, but only “accredited” investors can invest in them.

The SEC’s Investor Advisory Committee, experts who meet four times a year to provide policy recommendations, said at Thursday’s meeting that it felt the current income and net worth thresholds are an “imperfect proxy” for determining who is sophisticated.

The panel said the SEC needs other ways to measure sophistication, such as whether a person holds certain professional credentials or has worked in the financial sector.

If the SEC opts to retain certain thresholds, then the panel said the agency should explore alternative ways to set them.

One possibility would be to limit the amount that people can invest to a percentage of their assets or income so they will not be at risk of losing their entire life savings.

“What is ongoing now is a very deep-dive study…into the definition,” said SEC Chair White on the sidelines of the meeting.

She said the SEC was making progress on its study, but has not reached any conclusions yet.

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Reddit Plans Its Own Cryptocurrency To Give Back To Its Users After $50 Million Raise

Reddit, the so-called front page of the internet, has raised $50 million in Series B on a $500 million valuation with intentions to give back 10 percent of the round’s equity to the community. The monster round is led by Sam Altman, CEO of Y Combintaor, with participation from Andreesen Horowitz and Sequoia Capital, as well as individual investors like Peter Thiel, Ron Conway, Jared Leto (randomly), Calvin Broadus Jr. AKA Snoop Dog (also randomly), Josh Kushner, Jessica Livingston, Kevin and Julia Hartz, Mariam Naficy, and Reddit CEO Yishan Wong.

With more than 5 billion monthly page views and 115 million uniques each month, Reddit is one of the biggest content sharing sites in the world. According to the company blog post, the funding will go toward staff expansion for product development, community management, and better tools around moderation and community.

“I’m willing to be very patient. I don’t have any particular timeframe in mind. I believe that the community is very valuable and that the value will continue to increase.
Up to the company if they want to share cashflow details, but they run the company efficiently,” said investor Sam Altman in a Reddit post.
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