Category: Ribbit Capital

Startup insurance provider Vouch raises $90M, now valued at $550M



Vouch, a provider of business insurance to startups and high-growth companies, announced today it has raised $90 million in new funding.

The $90 million figure was raised across two rounds: a $60 million Series C co-led by SVB Capital (a subsidiary of Silicon Valley Bank) and Ribbit Capital that values the company at $550 million, and a previously unannounced $30 million Series B1 led by Redpoint Ventures.

With the latest financing, San Francisco-based Vouch has now raised a total of $160 million since its 2018 inception. Other investors include Allegis Group, Sound Ventures and SiriusPoint.

While there are many insurance technology companies out there that serve consumers, there are far fewer that offer it to companies, much less startups. Vouch describes itself as “a new kind of insurance platform” for startups that offers fully digital, “tailored coverage that takes minutes to activate.”

Over the past year, Vouch has seen impressive growth. The company declined to reveal hard revenue figures, but said it saw “7x” increase in its customer base year over year and currently protects over $5.7 billion in risk across thousands of policies. Today, Vouch has more than 1,600 clients, including Pipe, Middesk, Neighbor and Routable. It is also the “preferred” business insurance provider to the customers of Silicon Valley Bank, Brex, Carta and WeWork. Y Combinator too also refers Vouch to its portfolio companies. 

To Vouch co-founder and CEO Sam Hodges, the ability to attract some (Read more...)

Balance raises $25M in a Ribbit Capital-led Series A to grow its ‘consumer-like B2B checkout platform’



Balance, a payments platform aimed at B2B merchants and marketplaces, has raised $25 million in a Series A funding round led by Ribbit Capital.

Avid Ventures participated in the financing, in addition to existing backers Lightspeed Ventures, Stripe, Y Combinator Continuity Fund, SciFi VC and UpWest. Other individual investors that put money in the round include early employees and executives from Plaid, Coinbase, Square, Stripe and PayPal, such as Jaqueline Reses, formerly head of Square Capital. The financing comes just over six months after Balance announced a $5.5 million seed round.

The motivation for starting the company was simple, said CEO and co-founder Bar Geron: “We wanted to create an online B2B experience that doesn’t suck.” He and Yoni Shuster, both former PayPal employees, started the company in early 2020.

B2B payments, he said, have historically differed from B2C primarily in that they have not taken place at the moment of purchase (or at the point of sale) but rather within 30 days and with an invoice. This is not an efficient process for merchants or vendors alike, the company maintains.

Meanwhile, most businesses have avoided paying for their supply with credit cards, because cards can quickly max out, Geron said.

“The only element that keeps many merchants offline is payments,” he told TechCrunch. “It’s a process that is stuck in the flow of those marketplaces and keeping them from scaling. We got fascinated with the problem.”

Why global investors are flocking to back Latin American startups



The Latin America startup ecosystem is having a great year, with mega-rounds being announced at breakneck speed and new unicorns minted almost monthly. This is mostly due to the clearly maturing startup scene in the region, with proven successes such as Nubank, Cornershop, Gympass and Loggi helping to bolster LatAm’s credibility.

Interestingly, many of the region’s rounds are led by or saw participation from investors based elsewhere. Firms such as SoftBank, Tiger Global Management, Tencent, Accel, Ribbit Capital and QED Investors are pouring money into LatAm. Some are even seeing more opportunity than in the U.S. — Latin America, they believe, has historically been ripe for disruption, especially in the fintech and proptech sectors, due to the significant underbanked and unbanked population in the region and the relatively unstructured real estate industry.

Last month, my colleagues Anna Heim and Alex Wilhelm found that structural factors such as strong digital penetration and quick e-commerce growth are among the key reasons Latin America is breaking venture capital records this year. One Mexico-based VC even declared that the story was about “talent, not capital.”

Local VCs are raving about the human capital in the region, but for some global investors, the appeal of Latin America extends beyond the talent to the general populace. Shu Nyatta, a managing partner at SoftBank who co-leads its $5 billion Latin America Fund, pointed out a dynamic that might seem obvious but is rarely articulated: Technology in LatAm is often more about inclusion rather than disruption.

“The (Read more...)

Robinhood files to go public after squeaking to profitability in 2020



This afternoon Robinhood, the popular investing app for consumers filed to go public. The company intends to list on the NASDAQ under the symbol “HOOD.”

That Robinhood released an S-1 filing today is not a surprise. The company privately filed to go public back in March, leaving the startup-watching world waiting for the eventual filing drop. Robinhood’s public offering document includes a placeholder $100 million raise figure, though that will change the closer we get to its debut.

The company is pursuing a public listing after a period of rapid growth. Robinhood saw its revenues soar from $277.5 million in 2019 to $985.8 million in 2020.

The company’s first-quarter numbers are even more impressive. During the first three months of 2021, Robinhood generated revenues of $522.2 million, up around four times from its Q1 2020 result of $127.6 million. TechCrunch expected Robinhood to post a strong first quarter based on previous filings relating to its payment-for-order-flow (PFOF) business.

Notably, Robinhood was profitable in 2020, generating net income of around $7.4 million during the one-year period. However, the company’s most recent period includes an epic $1.49 billion cost relating to “change[s] in fair value of convertible notes and warrant liability,” leading the company to post an astronomical net loss of $1.44 billion in the first quarter of the year. That compares with a net loss of $107 million for 2019.

For the three-month period ended March 31, Robinhood posted $463.8 million in operating expenses, inclusive of “brokerage and transaction” costs. The (Read more...)

Former Zillow execs raise $70M seed round for Tomo, which wants to simplify the mortgage process



There are so many startups pledging to reinvent the mortgage process that it’s hard to keep up. But for anyone who has had to go through the process of applying for one, it’s clear that there’s plenty of room for improvement.

The latest startup to raise venture money with the goal of making the process “smarter and faster” is one that was founded by a pair of executives that spent years at real estate giant Zillow. Tomo is very early stage — so early stage that it is only launching operations in conjunction with announcing it has just raised $70 million in seed funding. That’s a massive seed round by any standards (the third-largest in the U.S., according to Crunchbase), but especially for the real estate tech space (perhaps the largest ever).

Ribbit Capital led the financing, which also included participation from DST Global, NFX and Zigg Capital.

Former Zillow executives Greg Schwartz and Carey Armstrong founded Stamford, CT-based Tomo in the fall of 2020 to take on big banks when it comes to providing mortgages to consumers. CEO Schwartz first joined Zillow in 2007, where he says he “built the sales and revenue operations from the ground up.” Armstrong, who serves as Tomo’s chief revenue officer, previously led business strategy, product strategy and core operations for Zillow’s $1 billion buyer services business. 

Launching today in Seattle, Dallas and Houston, Tomo says it will do things like issue fully underwritten pre-approvals “within hours, not days” and guarantee on-time closing. This (Read more...)

Brazilian proptech startup QuintoAndar lands $300M at a $4B valuation



Fintech and proptech are two sectors that are seeing exploding growth in Latin America, as financial services and real estate are two categories in particular dire need of innovation in a region.

Brazil’s QuintoAndar, which has developed a real estate marketplace focused on rentals and sales, has seen impressive growth in recent years. And today, the São Paulo-based proptech has announced it has closed on $300 million in a Series E round of funding that values it at an impressive $4 billion.

The round is notable for a few reasons. For one, the valuation – high by any standards but especially for a LatAm company – represents an increase of four times from when QuintoAndar raised a $250 million Series D in September 2019.

It’s also noteworthy who is backing the company. Silicon Valley-based Ribbit Capital led its Series E financing, which also included participation from SoftBank’s LatAm-focused Innovation Fund, LTS, Maverik, Alta Park, an undisclosed US-based asset manager fund with over $2 trillion in AUM, Kaszek Ventures, Dragoneer and Accel partner Kevin Efrusy.

Having backed the likes of Coinbase, Robinhood and CreditKarma, Ribbit Capital has historically focused on early-stage investments in the fintech space. Its bet on QuintoAndar represents clear faith in what the company is building, as well as its confidence in the startup’s plans to branch out from its current model into a one-stop real estate shop that also offers mortgage, title, insurance and escrow services.

The latest round brings QuintoAndar’s total raised since its 2013 inception (Read more...)

Ribbit Capital leads $26.7M round for Brazilian fintech Cora



Cora, a São Paulo-based technology-enabled lender to small-and-medium-sized businesses, has raised $26.7 million in a Series A round led by Silicon Valley VC firm Ribbit Capital.

Kaszek Ventures, QED Investors and Greenoaks Capital also participated in the financing, which brings the startup’s total raised to $36.7 million since its 2019 inception. Kaszek led Cora’s $10 million seed round (believed at that time to be one of the largest seed investments in LatAm) in December 2019 with Ribbit then following.

Last year, Cora got its license approved from the Central Bank of Brazil, making it a 403 bank. The fintech then launched its product in October 2020 and has since grown to have about 60,000 customers and 110 employees.

Cora offers a variety of solutions, ranging from a digital checking account, Visa debit card and management tools such as an invoice manager and cashflow dashboard. With the checking account, customers have the ability to sending and receive money as well as pay bills digitally.

This isn’t the first venture for Cora co-founders Igor Senra and Leo Mendes. The paid had worked together before — founding their first online payments company, MOIP, in 2005. That company sold to Germany’s WireCard in 2016 (with a 3 million customer base) and after three years the founders were able to strike out again.

Cora co-founders Léo Mendes and Igor Senra; Image courtesy of Cora

With Cora, the pair’s long-term (Read more...)