ICON Corporate Finance FinTech Deal News
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FinTech Deal News #6

ICON advise Mosaic Smart Data on Strategic Investment by JP Morgan

ICON have advised Mosaic Smart Data on a strategic investment by JP Morgan.

Mosaic Smart Data help banks make their fixed-income sales and trading businesses more profitable. The platform helps visualize data and can be used by traders to figure out which clients are more likely to be interested in a given deal. It can also be used by bank bosses to track trading desk and trader performance.

This transaction further supports ICON's FinTech deal expertise which includes the strategic investment by Aviva into Wealthify, Synova Capital & FiveW Capital's investment into Merit, the acquisition of Cypad by ParentPay and the sale of Parmenion to Aberdeen Asset Management. 

Commenting on the deal Matthew Hodgson, CEO, Mosaic Smart Data said: "My compliments to ICON who have been instrumental in helping us close this round. They are formidable deal makers and helped navigate us though every step on the journey."

Last October, JPMorgan Chase made an unprecedented foray into the FinTech space, inking its first major acquisition with the purchase of payments firm WePay for more than $220m. 

A couple weeks before that, the firm led a $100m funding round for, another payments company, which valued the firm at nearly $745m. 

But as FinTech startups have emerged at an increasingly rapid pace over the past decade, JPMorgan has recognized that engaging with companies that can potentially unleash industry-changing innovations at an earlier stage serves its interest in several ways. How and why does JPMorgan decide to get involved with a FinTech startup?

Slipslidin' Away - Deutsche Bank has lost a chunk of market share in international bond underwriting
In international bond underwriting, the largest fixed-income category for which Bloomberg compiles league tables, Deutsche Bank's market share slumped in the first-quarter to its lowest since the data begin in 1999. Back in 2012, a record year for international sales, the German lender commanded 6.66 percent of the market, second only to JPMorgan Chase & Co.'s 7.5 percent.
Telenor Group and Ant Financial in strategic partnership to deliver inclusive financial services in Pakistan
Telenor Microfinance Bank, Pakistan-based subsidiary of international mobile operator Telenor Group, is getting a $184.5m investment from Ant Financial in return for a 45% stake in the bank. The strategic partnership combines TMB's knowledge and 20 million customers, and Alipay, the world's largest digital payment platform, to bring mobile payment and inclusive financial services to individuals as well as small and micro businesses in Pakistan.

Amazon Checking-Account Plan Sees Banks as Partner, Not Prey

Amazon is in talks with JPMorgan Chase & Co. and Capital One Financial Corp. about a product similar to checking account targeted at millennial consumers. The strategy could help Amazon lower fees it pays to financial firms and give it a bigger window into customers’ income and spending habits. 

Read more>>

Is Amazon ready to upend the insurance industry?
Internet giant Amazon is currently recruiting insurance professionals in London in a bid to disrupt the insurance market in countries throughout Europe.
Fearless Innovation: Insurtech as the catalyst for change within Insurance
Global investment in the InsureTech industry surged in 2017, with Europe emerging as a new hub outside the US, according to new research from Accenture.  
Despite the uncertainty around the UK’s vote to leave the European Union, the nation continues its emergence as Europe’s InsurTech capital, with 41 deals in 2017, representing total growth of 117% over the last two years. Deal values vastly increased in 2017, with $364m invested in UK-based insurtechs, up from $19m the year before.
Uber looking for Dutch payments licence
Uber has applied to the Dutch central bank for an e-money licence that will enable it to streamline its payment processes across businesses such as its core ride-hailing app and its fast-growing UberEats food delivery venture. Sources said the attempt to become classified as an electronic money institution was being handled by a new subsidiary called Uber Payments BV.
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M&A Deals

San Francisco based Credit Karma has received $500m in a secondary offering from Silver Lake, valuing the company at $4bn.  
Royal Bank of Scotland is to acquire UK accounting software vendor FreeAgent in a deal that values the firm at £53m.
UK-based challenger bank Tandem is buying Pariti, a money management app with 95,000 users. Pariti’s investors include Index Ventures and JamJar Investments.
The deal is emblematic of a trend that we’ve been seeing in the world of financial services for some time now: legacy behemoths are buying up smaller and more nimble startups that have revisited and rebuilt age-old services, bringing them up to speed. 
Stockholm-based Trustly is an online banking service allows users to pay each other directly from their bank accounts without payment cards. Neither party has officially disclosed any figures but the Financial Times reported that the value is around €700.
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Funding News

Mosaic Smart Data secures strategic investment from JP Morgan
ICON have advised Mosaic Smart Data on a strategic investment by JP Morgan. Mosaic help banks make their fixed-income sales and trading businesses more profitable.

Credit Karma Now Valued at $4bn Thanks to $500m Funding Boost
Silver Lake invests £500m in Credit Karma which sees the FinTech's valuation rises from around $3.25bn to approximately $4bn. As part of the deal, Silver Lake’s Mike Bingle will join Credit Karma’s board of directors.

Robinhood stock trading app valued at $1.3bn with big raise from DST
Zero-fee stock trading app Robinhood is completing a huge fund raise to fuel its attack on old brokerage firms that charge around $7 to $10 per trade. 

Revolut becomes the UK's latest Unicorn with $250m raise led by Yuri Milner’s DST Global
Challenger bank Revolut has raised $250m in Series C from Hong Kong-based DST Global bringing its valuation to $1.7bn. This funding will be used to take Revolut to the US, Canada, Singapore, Hong Kong and Australia in 2018. 

Germany's N26 readies for US launch with 110m capital injection led by Allianz and Tencent
Berlin-based mobile bank N26 has closed a Series C funding round of €110m led by Allianz and TenCent as it prepares to open up in the United States.

China Minsheng Financial Leads $100m Series E in Ping An-Backed Social Trading Firm eToro.
eToro raises $100m for its blockchain efforts and reaching new markets. The social trading and investment marketplace allows users to trade currencies, commodities, indices, and stocks. SBI Group, Korea Investment Partners and World Wide Invest also participated in the round. 

Atidot Raises $5m Series A to Bring Big Data and Predictive Analytics to Life Insurers
Tel Aviv based big data and predictive analytics software for life insurance raised a $5m Series A led by Vertex Ventures with participation from DE Shaw, Moneta Seeds and Bank Hapoalim.

UK RegTech ClauseMatch raise $5m to help Businesses Stay Compliant
Index Ventures led the round with with participation from Talis Capital, Speedinvest. 

Cloud-Based InsurTech Insly Secures €2.2m Series B Funding
The round was lead by Concentric and Black Pearls VC.

Asian FinTech News

China Consumer Loan King Ant Financial Hit by Debt Sale Drop - Jack may have a problem
Ant Financial's consumer lending business appears to be facing serious regulatory headwinds, with a 74 percent quarter-over-quarter decline in sales of asset backed securities tied to consumer lending. 

Why are Grab, AirAsia, and other big names moving aggressively into FinTech?
Grab announced its next move: a financial services venture. AirAsia similarly announced a new digital payments platform, BigPay.  Add that to Go-Pay, WeChat Pay, Sea Group’s AirPay, and we have a host of digital payment platforms from companies that didn’t originally start out in FinTech.

Chinese big data tech company Wecash announce completion of $160m Series D 
Wecash, China's first online credit assessment and reporting company, on track to become a FinTech-based Credit assessment solutions provider for financial institutions worldwide following closing of Series D financing.

Stock trading startup 8 Securities goes bullish with $25m funding
Great news for 8 securities - founder, Mikaal Abdulla, is bullish after pocketing his biggest-ever round of funding - US$25m. 

This young lending startup just secured $70m to lend $2 at a time
You don’t hear of many $2 loans in the United States, where $2 won’t buy you more than a chocolate bar. Branch is a way onto a platform that promises much bigger loans, based on your credit worthiness. 

FinTech firm Ayondo ends flat on Catalist debut
The first FinTech company to be listed on the Singapore bourse, Ayondo offers social trading and brokerage services to both business-to-consumer and business-to-business clients through two proprietary platforms: WeTrade and TradeHub. 

New Zealand launches industry API pilot

New Zealand has become the latest country to board the open banking train, launching an industry pilot to test two APIs. Six development partners - ASB, BNZ, Datacom, Paymark, Trade Me and Westpac - are carrying out the pilot, which will be completed late in the year.

Selection of ICON FinTech deals
CB Insights Global FinTech Report Q1 2018

VC-backed FinTech companies raised $5.4bn across 323 deals globally in Q1’2018: Global FinTech deal activity hit a new quarterly record. The US saw the largest boost in deals, while Europe saw FinTech deal activity dip to a 5-quarter low. Q1’18 FinTech 

Asia FinTech funding saw the largest quarterly spike in Q1’2018 on the back of 4 $100m+ investments: Funding to Asia-based FinTech companies surged on the back of 4 mega-round deals of $100m+ or greater.

Europe FinTech deals dipped to 5-quarter low in Q1’18: VC-backed FinTech companies in Europe saw the largest pull back in early-stage investments. Despite the dip in deals, funding hit a 5-quarter high driven by $100m+ investments to later-stage digital banking startups N26 and Atom Bank.

Banks continue to make FinTech investments, but slow down pace: Over the last five quarters, top US banks including Goldman Sachs, Citigroup, and JPMorgan slowed down their FinTech investments relative to 2016’s highs. European banks were more active as Santander made three new portfolio investments in Q1’18

Read more>>

How to make a move from banking to FinTech Work
Kerril Burke, the CEO of Meritsoft
The FinTech50 

See the full list of the fifty hottest FinTechs in Europe here>>

About ICON

ICON acts exclusively for tech companies. Its clients are changing the world and ICON helps them secure funding to build great companies and realise maximum value when they come to sell. ICON has recently sold companies to Constellation, NTT Com, Telstra, Accenture, Thomson Reuters, RWE Npower, Software AG and Aberdeen Asset Management and raised capital from leading private equity and venture capital funds.
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