The B2B FinTech startup community continues to weather the market disruption with relatively strong support from venture capitalists, despite an overall decline in venture capital funding across verticals. Others are probably on their way.
As reported by Fortune This week, the UBS Group plans to create a new venture capital fund to target FinTech startups and companies looking to disrupt the traditional banking arena. UBS is setting aside hundreds of millions of dollars for the fund, and the bank plans to put between $ 10 million and $ 20 million in its investment targets. An anonymous source told the publication that UBS will hold stakes in these companies for at least five years, although details of the initiative have not yet been finalized.
“UBS wants to engage more and support FinTech companies,” said UBS Group Chief Information Officer Mike Dargan. “The new venture capital investment portfolio is a next step in accelerating our innovation and digitization efforts.”
Meanwhile, B2B investors continue to support the growth of the industry. This week’s B2B venture capital roundup takes a look at the more than $ 48 million placed with startups looking to connect businesses to capital and keep B2B payments in supply chains.
Mati, a Mexico-based payments cybersecurity startup, raised an undisclosed seed investment with equity provided by Spero Ventures, while Kima Ventures, Dorm Room Fund and Blackhorn Ventures also participated. Mati, who first formed in California, is focusing on the Latin American market with expansion into Brazil and Colombia, the company noted, according to Conxto reports. “These countries have the highest payment fraud rates in the world, which makes their identity issues the most interesting,” company co-founder Filip Victor told the publication. As it expands, the company plans to use the funding to bolster its cybersecurity product.
Suryoday Small Finance Bank
india Suryoday Small Finance Bank announced this week an $ 8.2 million private equity fundraiser led by Gaja Capital, while Kotak Mahindra Life Company and Lok Capital, among others, also participated, according to a recent TechGraph report. Suryoday targets small and medium-sized businesses with loan services and other banking products. In a statement, the company’s co-founder and CEO, R Baskar Babu, said the investment “comes just as we have started to revamp and digitize our business processes, including our microfinance vertical, it is therefore a solid support to continue our plans “.
TIS, also known as Treasury Intelligence Solutions, is a Germany-based FinTech startup that provides businesses with a B2B payment and cash flow management solution. According to a Press release, TIS recently secured $ 20 million under the leadership of Aquiline Technology Growth, while 83North, Target Partners and Zobito also participated. The investment will be used to accelerate product development and expansion in Europe and the United States, TIS said.
Fund of funds
Its extended Series C funding cycle brought Fundbox $ 20 million in additional equity, the company told PYMNTS in a recent interview. With nearly $ 200 million in total investment raised, the company will continue to expand its presence in B2B finance and payments following the success of its recent launch of Fundbox Pay. MUFG Innovation Partners led the round.
Speak with Karen Webster, Fundbox Founder and CEO Eyal Shinar said the global market disruption caused by the pandemic has increased the need for FinTechs that sit between B2B buyers and suppliers throughout the supply chain. According to Shinar, the company’s investments in technologies such as machine learning, real-time data analysis and automated credit management allow it to “streamline the [B2B payment] process in a way that minimizes the likelihood of a disaster scenario. “