Welcome to the FinTech Times, covering the biggest FinTech news from around the globe.
Fintech Brex abandons co-CEO model, talks IPO, cash burn and plans for a secondary sale
Since fintech startup Brex’s inception in 2017, its two co-founders Henrique Dubugras and Pedro Franceschi have run the company as co-CEOs.
But starting today, the pair told TechCrunch in an exclusive interview, the San Francisco-based corporate credit card and expense management company is shifting to a more traditional — and what they say should be a more agile — model of just one CEO at the helm. Franceschi will become the sole CEO while Dubugras will become chairman of Brex’s board.
In an in-depth conversation, the two co-founders gave [TechCrunch] a peek into what the new structure will look like, the company’s current state of finances and how it has managed to reduce its cash burn.
Float launches bill payments and personal expense reimbursement products
Toronto-based corporate card and expense management technology startup Float has begun rolling out a pair of new offerings: bill pay and reimbursements.
This is part of the business finance platform’s plan to help customers manage their spending “all in one place,” from corporate card expenses to personal reimbursements, and bill pay, Float co-founder and CEO Rob Khazzam told BetaKit in an exclusive interview.
(BetaKit)
Fintech has hit a bottom after plunge in valuations and squeeze on funding, execs and VCs say
The financial technology industry is embracing a new normal — with some industry executives and investors believing the sector has reached a “bottom.”
Executives and investors at the Money20/20 event in Amsterdam last week told CNBC that valuations have corrected from unsustainable highs from the industry’s heyday in 2020 and 2021.
Long gone are the days when venture capital was flowing into startups with bold ideas and little to show in terms of business metrics and fundamentals.
(CNBC)
Led by former Solium CEO, CreditApp secures $2.7 million to commercialize auto lending software
Calgary-based FinTech startup CreditApp has closed $2.7 million CAD in financing led by Inovia Capital to commercialize its software for automotive dealerships and lenders.
CreditApp is led by FinTech veteran Marcos Lopez, who took the reins of CreditApp as CEO in January to help scale the startup’s business. Lopez is the former CEO of Calgary FinTech unicorn Solium Capital, which developed software for managing employee stock options and cap tables and was acquired by Morgan Stanley in 2019 for $1.1 billion.
(BetaKit)
Fintech Giant Ant Group Spends Record $2.9 Billion on Research
Ant Group Co. spent a record 21.2 billion yuan ($2.9 billion) on research last year as the fintech giant increased its investment in technology including artificial intelligence.
The affiliate of Alibaba Group Holding Ltd. has been boosting its research and development investment over the past three years, according to its 2023 sustainability report released Thursday.
The fintech pioneer has been expanding its overseas operations to overcome slowing growth at home. It’s tied up with more than 30 e-wallet platforms and banking apps for cross-border payments in regions including Southeast Asia and Europe.
The BetaKit Guide: Collision Week 2024
Earlier this week, BetaKit learned Vancouver has an agreement with Collision parent company Web Summit to bring a rebranded version of the major North American technology conference to the West Coast in 2025.
For those ready to make the most of the last ever Collision conference in Toronto, kicking off on June 17, BetaKit will remain your go-to source for breaking news and conference insights.
In the meantime, we’ve created The BetaKit Guide: Collision Week 2024, presented by Interac.
The BetaKit Guide outlines the most anticipated speakers, recommendations for side parties and local hot spots, as well as tips for getting around, all provided by you, our readers.
(BetaKit)
Parliament sets the stage to enact capital gains tax changes
The House of Commons passed a motion Tuesday that will bring forth legislation on proposed changes to capital gains tax measures, with 208 MPs voting in favour of and 118 voting against the motion.
Deputy Prime Minister Chrystia Freeland introduced the ways and means motion to Parliament on Monday, a 59-page document outlining draft legislation to increase the capital gains tax inclusion rate from 50 percent to 66 percent beginning June 25.
(BetaKit)
SEC reaches $4.47 bln settlement with now-bankrupt crypto firm Terraform Labs
Terraform Labs reached a $4.47 billion civil settlement with the U.S. Securities and Exchange Commission, after being found liable by a jury for defrauding cryptocurrency investors who lost an estimated $40 billion when the TerraUSD and Luna tokens collapsed in 2022.
Much is unlikely to be paid because Terraform filed for bankruptcy in January. It will instead be treated as an unsecured claim in the Chapter 11 case, where Terraform is liquidating. The SEC accused Terraform and Kwon of deceiving investors about the stability of TerraUSD, which he designed to maintain a constant $1 price, and falsely claiming that Terraform’s blockchain was used in a popular Korean mobile payment app.
(Reuters)
Michelle McBane knows how to play the long game
It’s fitting that Michelle McBane’s first foray into venture capital was a bet that paid off.
Her journey in the space began as a short term assignment, when she was seconded by her employer to Primaxis Technology Ventures, one of its early-stage investments.
“As far as the idea that you put $1 in here and you’re going to get $2 back out, these companies aren’t at that point at all, and I like that early-stage gray area,” she said.
(BetaKit)
UK judge brings end to JPMorgan’s dispute with Greek fintech founder
A London High Court judge has brought to an end a feud between JPMorgan and the founder of a Greek fintech that the bank part-owns, opening up the possibility of a sale of the business.
The Wall Street bank and Haris Karonis had filed legal claims against each other in February over their shared ownership of Viva Wallet, a popular payments platform used by businesses in Southern Europe.
In a statement, JPMorgan said: “The court has now provided a critical step to move forward with fair and transparent valuations — which could allow Viva to be sold soon, before the fintech M&A market further softens.”
A match made by AI
The pitch to the recruiter was compelling.
No, the candidate didn’t have five years of experience, which had been listed as a prerequisite for the position. They did, however, boast comparable skills and relative experience within their four years of work history.
And they were actively looking for a role, unlike many of the others who would appear to be qualified candidates.
In short, this was not someone who should be overlooked. At least, according to AI.
(BetaKit)
F|T: The FinTech Times is powered by Mantle.
Still using spreadsheets to manage your cap table?
Level up with Mantle the Canadian-made, AI-powered equity management platform. Mantle helps you manage everything from equity issuance to planning and projections, lightening your workload.
Book a demo and enjoy your first year free at withmantle.com/betakit to get started.