Category: credit card

Cardless raises $40M to help more brands launch custom credit cards



Many consumers use their credit cards to rack up rewards to be used toward travel. 

But what if you’re a sports fan, and using your credit card could lead to a virtual conversation with a player on your favorite team? Thanks to San Francisco-based Cardless, that opportunity may be less of a stretch than you think.

The startup, which is out to give brands and tech companies a way to launch custom co-branded credit cards, has raised $40 million in a Series B funding round led by Activant Capital. Other investors include the owners and management of the Phoenix Suns and Boston Celtics and existing backers such as Accomplice and Pear VC. The financing brings the two-year-old company’s total raised since its 2019 inception to $50 million. Accomplice and Greycroft co-led its $7 million Series A last June.

Put simply, Cardless aims to help consumer brands launch credit cards “very quickly and easily” by handling the program creation, card underwriting, lending, issuance and customer service for brands. This quarter, the startup launched three digital programs — with the NBA’s Cleveland Cavaliers, British soccer team Manchester United and the Miami Marlins, a Major League Baseball team based in Florida.

The company is out to modernize the whole concept of co-branded credit card programs. Of the 200 that exist in the U.S. today, only one is from a company that is less than two decades old, according to Cardless’ co-founder and president Michael Spelfogel.

“There are close to 200 brands (Read more...)

Homebrew leads Z1’s effort to bring digital banking to Latin America’s teens



Z1, a Sao Paulo-based digital bank aimed at Latin American GenZers, has raised $2.5 million in a round led by U.S.-based Homebrew.

A number of other investors also participated in the financing including Clocktower Ventures, Mantis – the VC firm owned by The Chainsmokers, Goodwater, Gaingels, Soma Capital and Rebel Fund. Notably, Mantis has also backed Step, a teen-focused fintech based in the U.S., and Goodwater has also invested in Greenlight, which too has a similar offering as Z1.

Z1 participated in Y Combinator’s Winter ‘21 batch earlier this year, and at the time got $125,000 in funding from the accelerator. Maya Capital led its $700,000 seed round in March of 2020.

Put simply, Z1 is a digital bank app built for teenagers and young adults. The company was founded on the notion that by using its app and linked prepaid card, Brazilian and Latin American teenagers can become more financially independent.

João Pedro Thompson and Thiago Achatz started the company in late 2019 and soon after,  Mateus Craveiro and Sophie Secaf joined as co-founders. In its early days, Z1 is focused on Brazil but the startup has plans to expand into other countries in Latin America over time.

“Z1 is what we’re building to be the go to bank of the next generation, and not just be a digital bank for teens,” Achatz told TechCrunch. “We want to grow with him and one day, (Read more...)

After selling Bread last year for over $500M, this founder just raised millions for his new fintech startup



When Daniel Simon sold Bread, a consumer purchase finance and payments startup he’d co-founded, to Alliance Data Systems for over $500 million late last year, he quickly set his sights on building another startup.

During the pandemic, Simon says he observed how much strain was placed on what he described as ‘real-world’ businesses and their employees — such as truck drivers, plumbers, HVAC installers and last-mile delivery people — “and how little the last decade of innovation in fintech has done to meet the needs of the vast and vital fleets segment.”

So he teamed up with former Lyft exec Andrew Woolf to found Coast, a company that is aiming to meet those needs with the mission of becoming “the financial platform for the future of transportation.”

And today, the New York-based company is announcing it has raised $6 million in an “oversubscribed” seed round of funding led by Better Tomorrow Ventures. Avid Ventures, Bessemer Venture Partners, BoxGroup, Colle, Foundation Capital, Greycroft, and Max Levchin’s SciFi VC — as well as more than a dozen angels including founders of Plaid, Flexport, Marqeta, Bread, Albert, Addi, Lithic, and other fintech and logistics startups — also put money in the round.

Coast co-founders Daniel Simon and Andrew Woolf

Businesses that operate fleets need to enable their drivers to pay for vehicle-related expenses when they’re on the road, such as maintenance, roadside assistance and gas.

But once a fleet reaches a size of more than just a few vehicles, traditional small (Read more...)

Jeeves emerges from stealth with $131M in debt and equity and a16z as a lead investor



Jeeves, which is building an “all-in-one expense management platform” for global startups, is emerging from stealth today with $131 million in total funding, including $31 million in equity and $100 million in debt financing. 

The $31 million in equity consists of a new $26 million Series A and a previously unannounced $5 million seed round.

Andreessen Horowitz (a16z) led the Series A funding, which also included participation from YC Continuity Fund, Jaguar Ventures, Urban Innovation Fund, Uncorrelated Ventures, Clocktower Ventures, Stanford University, 9 Yards Capital and BlockFi Ventures.

A high-profile group of angel investors also put money in the round, including NFL wide receiver Larry Fitzgerald and the founders of five LatAm unicorns — Nubank CEO David Velez, Kavak CEO Carlos Garcia, Rappi co-founder Sebastian Mejia, Bitso CEO Daniel Vogel and Loft CEO Florian Hagenbuch. Justo’s Ricardo Weder also participated in this round and Plaid co-founder William Hockey put money in the $5 million seed funding that closed in 2020 after the company completed the YC Summer 2020 batch.

The “fully remote” Jeeves describes itself as the first “cross country, cross currency” expense management platform. The startup’s offering is currently live in Mexico — its largest market — as well as Colombia, Canada and the U.S., and is currently beta testing in Brazil and Chile. 

Dileep Thazhmon and Sherwin Gandhi founded Jeeves last year under the premise that startups have traditionally had to rely on financial infrastructure that is local and country-specific. For example, a company with employees in (Read more...)

alt.bank, Brazil’s latest fintech targeting the unbanked, raises $5.5M



It looks like everyone and their mother is trying to reinvent the Brazilian banking system. Earlier this year we wrote about Nubank’s $400 million Series G, last month there was the PicPay IPO filing and today, alt.bank, a Brazilian neobank, announced a $5.5 million Series A led by Union Square Ventures (USV).

It’s no secret that the Brazilian banking system has been poised for disruption, considering the sector’s little attention to customer service and exorbitant fee structure that’s left most Brazilians unbanked, and alt.bank is just the latest company trying to take home a piece of the pie.

Following Nubank’s strategy of launching a bank with colors that are very un-bank-like, signaling that they do things differently, alt.bank similarly launched its first financial product in 2019 — a fluorescent-yellow debit card which the locals have endearingly dubbed, “o amarelinho,” meaning, “the little yellow card.”

The company, founded by serial entrepreneur Brad Liebman, follows the founder’s $480 million exit of Simply Business, which was acquired by U.S. insurance giant Travelers in 2017.

Unlike many fintechs, alt.bank has a strong social mission and pays commissions for referrals that last for the customer’s lifetime. 

“Most fintechs just help wealthy people get wealthier, so I thought let’s do something with a social mission,” Liebman told TechCrunch in an interview.

To drive home the mission, and really target the unbanked, Liebman and his team of 80 employees have designed an app that can be used by the illiterate. Instead of words, users can (Read more...)

The second shot is kicking in



Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

First and foremost, Equity was nominated for a Webby for “Best Technology Podcast”! Drop everything and go Vote for Equity! We’d appreciate it. A lot. And even if we lose, well, we’ll keep doing our thing and making each other laugh. (Note: we are in last place, which is, well, something.)

Regardless, the Equity team got together once again this week to not only go over the news of the week, but also to do a little soul searching. You see, some news broke yesterday, so we figured that we had to talk about it in our usual style. So, here’s the rundown:

  • Do you want to buy TechCrunch? Apparently you can? Albeit probably along with a few billion dollars worth of other assets — whatever is left of Yahoo and AOL — you can now own an NFT. A non-fungible TechCrunch. What is ahead for us? We don’t know. So if you do know, tell us. Until then we’ll just yo-yo gently between panic and optimism, as per usual.
  • We also dug into the latest All Raise venture capital data, and the results were abysmal. 
  • Next up was the news that fintech startups are setting records in 2021, raising more capital than ever before. That brought us to the latest from Brex.
  • And then there was a suspicious trend when three fintech companies focused (Read more...)

Fraud prevention platform Sift raises $50M at over $1B valuation, eyes acquisitions



With the increase of digital transacting over the past year, cybercriminals have been having a field day.

In 2020, complaints of suspected internet crime surged by 61%, to 791,790, according to the FBI’s 2020 Internet Crime Report. Those crimes — ranging from personal and corporate data breaches to credit card fraud, phishing and identity theft — cost victims more than $4.2 billion.

For companies like Sift — which aims to predict and prevent fraud online even more quickly than cybercriminals adopt new tactics — that increase in crime also led to an increase in business.

Last year, the San Francisco-based company assessed risk on more than $250 billion in transactions, double from what it did in 2019. The company has over several hundred customers, including Twitter, Airbnb, Twilio, DoorDash, Wayfair and McDonald’s, as well a global data network of 70 billion events per month.

To meet the surge in demand, Sift said today it has raised $50 million in a funding round that values the company at over $1 billion. Insight Partners led the financing, which included participation from Union Square Ventures and Stripes.

While the company would not reveal hard revenue figures, President and CEO Marc Olesen said that business has tripled since he joined the company in June 2018. Sift was founded out of Y Combinator in 2011, and has raised a total of $157 million over its lifetime.

The company’s “Digital Trust & Safety” platform aims to help merchants not only fight all types of internet (Read more...)

Tribal Credit, which provides credit cards to startups in emerging markets, raises $34.3M



The B2B payments space has seen an explosion in demand, and investor interest, in the wake of the COVID-19 pandemic as businesses try to figure out how to pay each other digitally. The challenges become even more complex when dealing with cross-border payments.

Startups that were formed before the pandemic stand to benefit from the shift. One such startup, Tribal Credit, launched its beta in late 2019 to provide payment products for startups and small to medium-sized businesses (SMBs) in emerging markets.

Today, Tribal Credit announced it has raised $34.3 million in a combined Series A and debt round led by QED Investors and Partners for Growth (PFG). Existing backers BECO Capital, Global Ventures, OTG Ventures and Endure Capital also participated in the round, along with new investor Endeavor Catalyst. The raise follows “10x” year-over-year growth, according to CEO and co-founder Amr Shady.

As part of the investment, Tribal received $3 million from the Stellar Development Foundation, a nonprofit organization that supports the development and growth of the open-source Stellar blockchain network. 

Tribal uses a proprietary AI-driven underwriting approval process to evaluate businesses and approve them for credit lines. Those businesses can then use those credit lines to spend on Tribal’s products, Tribal Card and Tribal Pay. Tribal Card is a business Visa card that allows users to create physical and virtual multi-currency cards. Tribal Pay allows them to make payments to merchants and suppliers that don’t accept credit cards. 

The company says its value proposition lies (Read more...)