Fintech Startups of NYC 2015

Fintech Startups of NYC Volume 2

September 2015

A guide to the founders, investors, monetization & funding

Jesse Podell, Co-Founder TechDay, Startupbootcamp Fintech NYC jessepod

With Deb Bharda, Columbia Business School Class of 2016 debbhad

FINTECH STARUTPS OF NYC VOL.2 (2014>2015) WHAT A YEAR IT HAS BEEN

It started with a question on Quora

Financial Technology: What are the notable fintech startups based in NYC?


NYC Based Fintech Startups Volume 2

• To see last year’s slideshare: http://bit.ly/NYCFTS2014 -almost 5k views since August 31, 2014!

• Not meant to be a comprehensive resource- just a guide of the notable NYC fintech startups

• Public data used from CrunchBase, AngelList, Finnovate, CB Insights, FT Partners, LinkedIn & individual company websites

• There may be inaccuracies in this presentation regarding revenue and product pricing of the startups

• Companies are listed in random order• A good blog to read about the journey of fintech startups:

https://medium.com/fintech-fantastic/the-real-truth-about-fintech-startups-41c8e168554e

http://bit.ly/NYCFTS2014

http://bit.ly/NYCFTS2014


2015 Observations• NYC has become the leading home for institutional facing

blockchain startups as well as alt-credit analytics• Still a diversity problem with NYC fintech startups, < 10 of the

startups in this guide have a female founder• No notable NYC fintech startup deaths in LTM, nor have there

been any down rounds in the news• $18bln in global fintech investment this year vs. $3bln last year.

NYC saw $768 in fintech investment in 2014 a 32% y/o advance• There is still no $1Bln valuation fintech startup in NYC• OnDeck (ONDK) was the most valuable company in last year’s

deck- down 50% from IPO price, current market cap ~$640mln • For some more thoughts- www.jessepodell.com/NYCFTS2015


Marketplace

What They Do: Connects people who own stock in a private company with investors who want a stake in post-seed stage, pre-IPO startups via their fund. Charges administrative fees and has a 10% carry.

Year Founded: 2013

How Much They’ve Raised: $150,000

Founders: Atish Davda, Shriram Bhashyam, Phil Haslett

Investors: 500 Startups, John Ason


Lending

What They Do: Collects money from individual investors, including alumni of graduate programs who want to support other students, and channels it into student loans. Charges origination fee + fixed loan rate.

Year Founded: 2011

How Much They’ve Raised: $103,50,0000

Founders: David Klein Michael Taormina, Jessup Shean

Investors: Tribeca Venture Partners, Vikram Pandit

+$30,000,000


Investment Management

What They Do: Automated online investing for retail customers in diversified ETF portfolios using modern portfolio theory. Charges management fee of .15-.35% depending on balance.

Year Founded: 2008


Founder: Jon Stein

Investors: Menlo Ventures, Bessemer Venture Partners, Anthemis Group, Globespan Capital Partners

+$60,000,000


Lending

What They Do: Online small business loan provider with CEO who came from Spark Capital and CTO who ran engineering at Venmo. Charges flat 3% origination fee.

Year Founded: 2013


Founders: Jon Haber Peyton Sherwood

Investors: Homebrew, Founders Collective, Matt Coffin, Collaborative Fund

+$10,000,000+$100mln in debt


Education

What They Do: Y Combinator-incubated startup that provides tools to help retail consumers answer tough financial questions. They make money on advertising and lead generation.

Year Founded: 2012


Founders: Michael Carvin, Philip Camilleri

Investors: SV Angel, Javelin Ventures


Marketplace

What They Do: The world’s biggest broker of venture backed private companies. Facilitates company controlled private buy backs and third party tender offers charging percentage of each transaction. Plus, they run The Bitcoin Investment Trust.

Year Founded: 2006


Founders: Barry Silbert

Investors: The Social+Capital Partnership, FirstMark Capital

+ Genesis Global Trading (an institutional trading firm focused on digital currency) and Grayscale, Sponsor of the Bitcoin Investment Trust (ticker: GBTC)


Marketplace

What They Do: Equity-based online crowdfunding platform for startups and small businesses. Charges 7.5% placement fee and up to $5,000 in dilligence, escrow, marketing, etc.

Year Founded: 2012


Founders: James Han, Ryan Feit

Investors: Archangel, Scout Ventures, Great Oaks



What They Do: Crowdsourced estimates for EPS and other datasets from over 4,500 hedge fund, brokerage and independent analysts. Makes money on selling its data to hedge funds and other investors.

Year Founded: 2011


Founder: Leigh Drogen

Investors: Contour Partners, Longworth Venture, Valuestream Labs

+$3,600,000


Financial Security

What They Do: Helps its users to identify fraudulent charges on their credit and debit cards, and also to keep track of their spending on the web and on its iPhone app. Licenses platform for banks and has monetizable financial data on transactions.

Year Founded: 2010


Founder: Yaron Samid

Investors: IA Ventures, Bessemer Venture Partners, Khosla Ventures, Founders Fund, Social Leverage

ACQUIRED BY PROSPER


Marketplace

What They Do: Axial operates the world's most active online network for professionals who operate, advise, finance, and acquire private companies. Charges a monthly fee of up to $4,250 for access to the network.

Year Founded: 2012


Founder: Peter Lehrman

Investors: First Round, Lerer Ventures


Marketplace

What They Do: The leading user generated content site for financial information on global alternative investments (private equity, venture capital, real assets and hedge funds). Charges up to $1,000 a month for access to the network. Year Founded: 2012


Founder: Alex Bangash

Investors: RRE Ventures, 500 Startups

+$2,500,000



What They Do: Equametrics has rebranded itself as RIZM, its product that allows traders to create their own algorithms without needing to know how to code. Charges monthly subscription ($100-$250) for back-testing or to execute live strategies.

Year Founded: 2011


Founder: Christopher Ivey, Adam Demos

Notable Advisor: Joshua B. Siegel, Rubicon VC

ACQUIRED


Education

What They Do: Learnvest’s mission is to empower women everywhere to take control of their personal finances. They make money by providing customized financial planning programs for up to $400 to set up and $19 a month.

Year Founded: 2007


Founder: Alexa von Tobel

Investors: Accel Partners, PKS Capital

ACQUIRED BY NORTHWEST MUTUAL



What They Do: OpenFin provides runtime technologies for financial desktops. They help financial firms update their technology and have less reliance on Bloomberg terminals. Sells directly to banks.

Year Founded: 2010


Founder: Maz Dar, Chuck Doerr

Notable Investor: Bain Capital Ventures

+$3,000,000


Lending

What They Do: OnDeck is an online lending platform for small businesses that has provided over $1Bln in loans- charges 2.5% origination fee. According to WSJ, they’re filing for an IPO for later this year.

Year Founded: 2007


Founder: Mitch Jacobs

Investors include: Google Ventures

IPO AT ~$1.3B VALUATION


Mobile Payments

What They Do: Handles B2B payments and high value payments from consumers to businesses using existing checking infrastructure. Makes fees on transactions.

Year Founded: 2010


Founder: Jake Howerton, Jay Bhattacharya

Investors: High Peaks Venture Partners, Contour Ventures, Village Ventures


Crypto Currencies

What They Do: A low latency “liquidity platform” bitcoin exchange for active traders. Charges up to .25% trading fee.

Year Founded: 2012


Founders: Janus Lukasiewicz, Yo Sub Kwon

Investors: Tribeca Venture Partners, Archangel

+$1,300,000



What They Do: They offer a platform for analysts to share financial models. They make money by offering different levels of subscription up to $200 a month.Year Founded: 2013

How Much They’ve Raised: $1,000,000Founders: Justin Zhen, Gregory Ugwi Investors: 500 Startups, HKB Capital


Education

What They Do: PayPerks drives behavior change using its web and mobile platform for low– and middle–income consumers using pre-paid cards.

Year Founded: 2009

How Much They’ve Raised: Undisclosed

Founders: Jake Peters, Arlyn Davich

Notable Investor: Anthemis Group


Marketplace

What They Do: ACE Portal allows broker dealers to list and manage private placement offerings and connect with investors. Charges placement agents, investors, for membership access to the platform.

Year Founded: 2010

How Much They’ve Raised: Undisclosed

Founder: Brendan Cahill, Peter Williams

Major Investor: NYSE Euronext


Marketplace

What They Do: One of the original platforms for entrepreneurs to collaborate with investors to fund new ventures by one of the most notable angel investors. Does not charge fees to startups or investors- licenses the platform to angel groups, VC’s, etc.

Year Founded: 2004

How Much They’ve Raised: Unknown

Founder: David Rose

Major Investor: David Rose (Rose Tech Ventures)


Banking

What They Do: The first bank to not have plastic cards for its customers instead relying on NFC (Near Field Communication) capability of phone as a payment device. Provides instant feedback on payments and spending. Does not charge a monthly fee to users.

Year Founded: 2011


Founders: Alex Sion, Brett King

Investors: Anthemis Group, Raptor Ventures



What They Do: “Next Generation Vanguard” online portfolio management offering “simple hedged solutions for every kind of investor”. Charges annual fees of up to .75% of balance.

Year Founded: 2010


Founders: Mike Kane, Matthew Kane

Notable Accelerator: SixThirty – FinTech Accelerator

+$1,800,000


Education

What They Do: Equity crowdfunding research and education for retail investors. Will make money on subscription products.

Year Founded: 2013


Founders: Matthew Milner, Wayne Mulligan

Notable Investor: Social Leverage


Investment Banking

What They Do: Created software that automates tediousness of creating investment banking pitchbooks for tablet devices. Already in pilot at major banks.

Year Founded: 2011


Founders: Jamie Ballingall, Adrian Crockett

Investors: Undisclosed


Education

What They Do: Comprehensive private company database and data visualizations including VC’s & startups. Sells monthly subscriptions of up to $4,000 for predictive analytics and data access.

Year Founded: 2009

How Much They’ve Raised: Unknown

Founders: Jonathan Sherry, Anand Sanwai

Investors: Undisclosed

+$1,200,000 (GRANT)


Mobile Payments

What They Do: Built tools to enable any developer to create his or her own branded app and take in-person credit card payments from it. Charges a monthly fee per device for unlimited use of their SDK & API.

Year Founded: 2013


Founders: Derek Webster, Tim Saunders

Investors: ff Ventures, Payment Ventures, Great Oaks

+$750,000


Crypto Currencies

What They Do: Comprehensive digital currency data dashboard and analytics. Charging a fee for professional level reporting tools.

Year Founded: 2013


Founders: Jeff Schvey, Greg Schvey

Investors include: Y Combinator, FinTech Collective, Devonshire Investors, Andreesen Horowitz


Marketplace

What They Do: Formed by the merger of Rock The Post and Co-Founders Lab (in person networking events for tech founders) it is a platform for early stage startups to get funded & charges a success fee to startups after their fundraise.

Year Founded: 2014


Founders: Shahab Kaviani, Tanya Prive, Alejandro Cremades

Investors include: Mid-Atlantic Angel Group, Fortify Ventures

+$2,000,000


Lending Analytics

What They Do: Provides tools to institutional investors to scale their investments in Online Direct Lending by providing analytics, trade execution, and real time reporting.

Year Founded: 2013


Founders: Matt Burton, Jonathan Kelfer, Angela Ceresnie

Investors include: Brooklyn Bridge Ventures, Spark Partners

+$30,000,000


Other notable startups include…

+$1,900,000

+$4,000,000

$8,300,000

$2,000,000


2015 ADDITIONS


Lending

What They Do: Offers up to $50,000 to small businesses for vendor financing. They make money via a monthly fee paid by the borrowers.

Year Founded: 2011


Founders: Benjy Feinberg, Shai Feinberg, Jeremy Esekow

Investors include: SenaHill Partners, Scout Ventures, Green Visor Capital, Thayer Street Partners


Crowdfunding Analytics

What They Do:Provider of technology and market data solutions to the global crowdfinance marketplace. They operate a centralized hub for real-time market data aggregated from disparate platforms. They make money via in-dept reports and data services.

Year Founded: 2011

How Much They’ve Raised: $1,900,000Founders: Srikanth Goteti, Luan CoxInvestors include: Undisclosed


Blockchain

What They Do: They intend to use distributed ledgers to reduce Settlement Latency and Counterparty Risk for large financial institutions. Currently in POC and assembling their Series A.Year Founded: 2014How Much They’ve Raised: UnknownFounders: Blythe MastersInvestors include: Unknown


Blockchain

What They Do: Nine of the largest investment banks have partnered with a R3CEV to integrate the blockchain into financial services.Year Founded: 2015How Much They’ve Raised: UnknownFounders: David RutterInvestors include: Unknown


Blockchain

What They Do: Global bitcoin exchange offering institutional and retail investors a platform to buy and sell bitcoin. Makes money on exchange fees.Year Founded: 2012How Much They’ve Raised: $28,300,000Founders: Charles CascarillaInvestors include: Blockchain Capital, Liberty City Ventures. Raptor Capital Mgmt, RRE, Solon Mack Capital


Blockchain

What They Do: White label digital currency exchange platform. Make money via a licensing fee (minimum monthly fee) and a revenue share based on the number of trades executed on the platform.Year Founded: 2013How Much They’ve Raised: $1,800,000Founders: Rick "Henri" Chan, Joe VenturaInvestors include: Robin Hood Ventures, Blockchain Capital


Lending

What They Do: Direct consumer lending platform for borrowers 600 FICO and above. Make money via origination and servicing feesYear Founded: 2012

How Much They’ve Raised: $2,900,000Founders: Meytal Benichou, Mikael Rapaport

Investors include: Corporest Development


Enterprise SAAS

What They Do: Mobile Application for expense management. Monthly subscription $5-$20. Year Founded: 2010How Much They’ve Raised: $1,000,000Founders: Jim ThomasInvestors include: Unknown


Blockchain

What They Do: Issues total-return bitcoin swaps to institutions and also acts as a consultant to financial institutions on bitcoin.Year Founded: 2014How Much They’ve Raised: $3,000,000Founders: Dimitri Nemirovsky, Charles Poliacof, Bryan Reyhani, Ivan Brightly, Daniel H. Gallancy, David Lehmann, David J. Namdar, Owen GundenInvestors include: Red Sea Ventures, Liberty City Ventures, Red Swan Ventures


Lending Analytics

What They Do: Financial information services company that is creating tools to analyze, access, and manage risk in the peer-to-peer lending sector. Year Founded: 2014How Much They’ve Raised: $8,500,000Founders:Dan Long, Ram Ahluwalia, Dan Long, Robert KhedouriInvestors Include: Dan Doctoroff, Vikram Pandit, John Mack



What They Do: Personal financial product for kids, subscription model is expected to be added before the end of the year.Year Founded: 2012How Much They’ve Raised: $1,300,000Founders: Seamus MatthewsInvestors include: Silicon Valley Bank


Payments

What They Do: Web-based communications and logistics platform that helps organizations manage their workforce and understand their operations. Built especially for organizations with distributed workforces.Year Founded: 2014How Much They’ve Raised: $800,000Founders: Armand Patella, Nicholas LilliosInvestors include: Metamorphic Ventures



What They Do: Multi-manager SAAS product for family offices & private wealth including accounting, analytics, and reporting solutions.Year Founded: 2012How Much They’ve Raised: UndisclosedFounders:Howard Yen, Hugh NguyenInvestors include: SenaHill Partners, Scout Ventures, Green Visor Capital, Thayer Street Partners


Litigation Funding

What They Do: Online marketplace for plaintiff litigation funding. Charge a variable fee based on case outcome.Year Founded: 2014How Much They’ve Raised: $5,300,000Founders: Joshua Schwadron, Dylan BeynonInvestors include: Daher, Fintech Collective, IA Ventures, Tribeca Venture Partners


Investment ManagementWhat They Do: Pre-Launch Mobile based advisor that ties investments to "beliefs, interests and goals”. Charges .25% per year on assets.Year Founded: 2015How Much They’ve Raised: $1,400,000Founders: Brandon Krieg, David RonickInvestors include: Undisclosed


Trading Technology

What They Do: Transparent marketplace for institutional trading of US Treasuries. The platform is currently free.Year Founded: 2014How Much They’ve Raised: $3,000,000Founders: Kristi Neller, James GrecoInvestors include: Metamorphic Ventures, IA Ventures, Y Combinator, Winkelvoss Capital


Marketplace

What They Do: Online marketplace that connects small business owners with funding providers. Lender pays them a 1% to 3% of the total loan amount as an origination fee.Year Founded: 2013How Much They’ve Raised: $13,900,000Founders: Andres Moran, Rohan Deshpande, Jared HechtInvestors include: David Rosenblatt, Scott Belsky, Aaron Levie, BoxGroup, Khosla Ventures, First Round, QED Investors, Susquehanna Growth Equity, Lerer Hippeau Ventures, SV Angel


Other notable startups include…

Israel/NYC


Thank You!

• Hope you enjoyed it. Tell a friend!• Shoot me a note [email protected]• Or tweet at me @jessepod

Disclaimers: I did not omit any company purposefully, the information is meant to be informational only and may not be accurate and I personally nor my employer accept responsibility for errors or omissions. This is not an endorsement for any company’s market valuation or viability.

mailto:[email protected]

Fintech Startups of NYC 2015

Technology

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