Lauren Myrick's company Found is the only new Fintech 50 entrant in B2B banking this year.
found
CCompared to other fintech sectors, business-to-business banking did quite well in 2023. This is also due to the failure of traditional banks. When Silicon Valley Bank, with $209 billion in assets, collapsed in March 2023, some fintech companies were flooded with new business. For example, Mercury, founded in 2017, in the days after the creation of SVB he collected more than $ 2 billion in deposits.
VB
This year, nine B2B banking companies were named to the Fintech 50, but only two of them are actual banks. Also, its specialty is to provide services to other digital banks without a banking license by holding deposits and processing payments. One is Column, led by his CEO William Hockey, who also co-founded Plaid. Column's customers also include fellow fintechs Carta and Nium. Another is Lead Bank, whose clients include Affirm and Ramp. Lead, led by former Square executive Jackie Reses, generated more than $140 million in revenue last year.
Only one of the nine participants is a first-time entrant on the list. That would be Found (formerly Indie Technologies), which was founded in 2020 as a banking platform for the self-employed, owner-managers, and small business owners. CEO and co-founder Lauren Myrick started her career as an accountant, where she worked for eight years.Company She is Designed on Etsy
ETSY
Other highlights in the B to B banking category include GoodLeap and Zest AI. The former works with contractors and vendors to get instant approval from residential customers for financing solar panels and other sustainable home improvements. The latter works with lenders to include loan approvals for protected populations, including Black and Latino applicants.
The nine B2B banking companies named to the 2024 Fintech 50 are:
column
Federally chartered banks partner with fintech startups to enable banking services by helping customers store deposits, process interbank transfers, and provide loans. Its technology also enables customers including Carta, Brex and Nium to build and manage their own financial products, such as credit cards and loan programs.
Headquarters: San Francisco, California.
Funding: $50 million plus from co-founders.
sincerely: Revenue reached $31 million last year, up from $17 million in 2022.
Co-founder: CEO William Hockey, 34, is a former billionaire who co-founded Plaid in 2013 and sold some of his Plaid stock to fund Column. Annie Hockey, 34, former Bain consultant and Stanford MBA.
found
Founded in 2020, Found is a business banking platform designed for owner-operators, small business owners, and the self-employed. Customers can use it to create invoices, manage contractors, and track projects. Users range from a restaurant owner and his Etsy sellers to gig workers and independent business consultants.
Headquarters: San Francisco, California.
Funding: $73 million from Sequoia Capital, Founders Fund and Lightspeed Venture Partners.
Latest valuation: 350 million dollars.
Last evaluation date: February 2022.
sincerely: In 2023, active users nearly doubled to 122,000.
Co-founder: CEO Lauren Myrick, 39, is an accountant who worked at Square for eight years. Conor Dunn, CIO, 35 years old.
good liep
Thousands of contractors and vendors use the company's POS app to get instant approval from residential customers for financing solar panels and a variety of other sustainable home improvements, such as energy-efficient windows. This makes the app the world's leading POS platform. This space. GoodLeap makes the loans, and its partner banks securitize the bonds and sell them to investors. Approximately $1.8 billion of loans were securitized in 2023.
Headquarters: Roseville, California.
Funding: $1.6 billion from New Enterprise Associates, West Cap Group, BDT Capital Partners/MSD Partners and others.
Latest valuation: 12 billion dollars.
Last evaluation date: October 2021.
sincerely: Since 2018, the company has generated more than $26 billion in loans to 1 million homeowners.
Co-founder: Chairman and CEO Hayes Bernard, 51, and Chief Revenue Officer Matt Dawson, 49, are longtime executives at SolarCity (now Tesla Energy). be. and Chief Risk Officer Jason Walker, 50, a veteran mortgage broker.
lead bank
The executives, including former Square executives, will acquire the 96-year-old FDIC-insured community bank in August 2022 to move funds, issue loans and disburse funds to fintech companies and crypto startups, including Affirm and Ramp. It is used for processing. Customers pay variable fees based on transaction or loan volume. Like other banks, Reed earns interest income from its cash deposits, which totaled $765 million at the end of last year.
Headquarters: Kansas City, Missouri.
Funding: $100 million from Ribbit, Coatue, Khosla Ventures and others.
Latest valuation: 450 million dollars.
Last evaluation date: August 2021.
sincerely: 2023 sales were $145 million and net income was $17 million, up from $111 million and $8 million in 2021.
Co-founder: CEO Jacqueline Rees, 54 years old. CTO Ronak Vyas, 53 years old. Data scientist Homam Maalouf, 40 years old. Chief Legal Officer Erika Kalili, 41, is part of the team of executives who founded the bank in the fintech block (formerly Square).
Mercury
Digital banking platform for startups. We offer fee-free checking accounts, savings accounts, debit cards, venture debt financing, and Treasury investments. The cash management account spreads deposits across 20 banks and allows customers to receive up to $5 million of his FDIC insurance on his funds. Mercury's Treasury account allows funds in excess of that to be transferred to Vanguard's money market funds. Within days of Silicon Valley Bank's collapse in March 2023, Mercury collected more than $2 billion in deposits and retained 92% of its customers six months later.
Headquarters: San Francisco, California.
Funding: $163 million from CRV
CRV
Latest valuation: 1.6 billion dollars.
Last evaluation date: July 2021.
sincerely: Transaction processing volume in 2023 was $95 billion, an increase of 95% from 2022. Mercury's customers include Immuta, Fly.io, and Jasper.
Co-founder: CEO Imad Akundo, 39, is a software developer turned entrepreneur who sold his mobile advertising startup for $45 million in 2016. COO Jason Chan Max Tager, 33, and CTO Max Tager, 31, both worked at Acundo before joining Mercury.
Navan
The travel and expense software startup, formerly TripActions, has its own corporate card and expense management app that can reimburse employees for out-of-pocket travel expenses in as little as 24 to 48 hours. Businesses pay a subscription fee to use the app, and users can also use the app to book flights, hotels, and car rental services. It is currently powered by a chatbot, a virtual assistant named Ava, who uses OpenAI to respond to inquiries from travelers and the company's finance team.
Headquarters: Palo Alto, California.
Funding: $1.55 billion from Andreessen Horowitz, Greenoaks, Lightspeed Venture Partners and others.
Latest valuation: 9.2 billion dollars.
Last evaluation date: October 2022.
sincerely: 8,400 monthly active corporate customers including Unilever and Thomson Reuters
bird
adobe
Co-founder: CEO Ariel Cohen, 48, and CTO Ilan Twigg, 50, met at Hewlett-Packard before co-founding StreamOnce, a business collaboration platform they sold in 2013. He is an Israeli-born executive.
lamp
The company's suite of products includes a flagship business credit card that offers unlimited 1.5% cash back on all purchases, a travel booking service, and free expense management that uses machine learning to flag wasteful spending. The platform includes (Ramp claims it helps you reduce your expenses by an average of 5% on expenses each year). In late 2023, Ramp integrated with Microsoft.
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Headquarters: New York, New York.
Funding: $1.67 billion from Founders Fund, D1 Capital Partners, Kochu Management and others.
Latest valuation: Funding in August 2023 was $5.8 billion, down from $8.1 billion in March 2022.
Evaluation date: August 2023.
sincerely: Founded in 2019, Ramp has 25,000 customers, including Shopify, Anduril, and Virgin Voyages, up from 14,000 a year ago.
Co-founder: CEO Eric Greiman, 33 years old. CTO Karim Atiyeh, 34 years old. The two longtime friends launched Ramp after selling online savings startup Paribus to Capital One.
C.O.F.
unit
Technology companies such as AngelList and Bill.com use their technology to offer their customers banking products such as checking accounts, credit cards, loans, and payment services. Unit, which was founded in December 2020, does not have a banking license, so it has partnered with Blue Ridge Bank to help businesses lend, store and move funds.
Headquarters: New York, New York.
Funding: $170 million from Insight Partners, Accel, Aleph and others.
Latest valuation: 1.2 billion dollars.
Last evaluation date: May 2022.
sincerely: Unit trading volume increased from $4 billion in 2022 to over $22 billion in 2023.
Co-founder: CEO Itai Damty, 38, and chief technology officer Doron Somek, 38, met as software engineers in the Israeli military and went on to work with high-tech company Revelate, which develops software for financial services brokers. He is a serial entrepreneur who co-founded .
Zest AI
We work with lenders like credit unions, banks, and auto lenders to increase loan approvals, leveraging AI to increase approvals while reducing credit risk. Among its customers, the company says it has seen a 49% increase in approvals for Latinx applicants, a 41% increase in approvals for Black applicants, and a 40% increase in approvals for female applicants. Zest's customer count at the end of 2023 was over 175, up from his 105 the year before.
Headquarters: Burbank, California.
Funding: $120 million from Insight Partners, Matrix Partners, Upfront Ventures and others.
Latest valuation: 250 million dollars.
Last evaluation date: November 2022.
sincerely: Revenue last year was more than $38 million, up from $17 million in 2022. We count Citibank and Freddie Mac as customers.
Co-founder: Former CEO Douglas Merrill, 53 years old. Former President Sean Budd, 58 years old.
CEO: Mike de Vere, 50 years old.
