5 notable FinTech funding rounds of 2021 in the Americas
By Edlyn Cardoza
The rise of new FinTech startups, new-to-bank population and technological advancements have paved the way to an upsurge in FinTech evolution. With individuals getting familiar with digital ways of conducting their banking transactions, the trend is expected to continue even post the COVID-19 era.
The COVID-19 pandemic has resulted in an acceleration in digital trends. FinTechs are becoming mainstream with more investment made than ever before. Tracking FinTech investments provides a better perspective on the competitive and strategic trends in the industry. Below are five notable FinTech funding rounds in the Americas in 2021.
- Wealthsimple ($750 million)
Wealthsimple, a Canadian online investment management service provider, has announced that the company had raised $750 million in an investment round led by Meritech and Greylock in May this year. The new round gives Wealthsimple a valuation of $5 billion.
Besides Meritech and Greylock, the investment round saw participation from investors including DST Global, Sagard, Iconiq, Dragoneer, TCV, iNovia, Allianz X, Base 10, Redpoint, STEADFAST, Alkeon, TSV, Plus Capital and others participated in the round, plus prominent Canadian celebrities including rapper Drake, actors Ryan Reynolds and Michael J. Fox, and athletes Kelly Olynyk, Dwight Powell, and Patrick Marleau.
The firm plans to use this finance to give Canadians more powerful financial products, more efficient ways to grow and manage their money and make sure that the door to financial freedom is open to every person.
- Brex ($425 million)
Brex, reimagining financial systems for growing businesses, in April in 2021, had announced securing $425 million in Series D investment round, led by Tiger Global, bringing the company at a valuation of over $7.4 billion.
Founded in 2017 by Henrique Dubugras and Pedro Franceschi, Brex is reimagining financial systems so every growing company can realize their full potential. FinTech, in Q1 2021 alone, grew total customers by 80%, with total monthly customer additions increasing by 5x.
The investment round saw participation from new investors TCV, GIC, Baillie Gifford, Madrone Capital Partners, Durable Capital Partners LP, Valiant Capital Management and Base10, with participation from all existing significant investors, including Y Combinator Continuity, Ribbit Capital, DST Global, Greenoaks Capital, Lone Pine Capital and IVP.
- Plaid ($425 million)
Plaid, a FinTech company democratizing financial services through technology, had announced raising $425m Series D financing in April this year. The funding round saw participation from new investors Altimeter Capital, Silver Lake, Ribbit Capital, and existing investors, including Andreessen Horowitz, Index Ventures, Kleiner Perkins, New Enterprise Associates, Spark Capital, and Thrive Capital.
The new funding will help Plaid better support developers across all industries & continue to unlock financial freedom for everyone. FinTech is planning to use the investment to help scale the platform to support the massive growth in FinTech and enable the next generation of digital financial services. The firm also has plans to continue to grow its team and is hiring over 400+ roles across all teams.
- EBANX ($400 million)
EBANX, a technological payment solution provider connecting Latin American consumers to global companies, had announced in June 2021 about securing an investment of US $400 million from Advent International and an additional commitment of US$30 million to the company’s planned IPO in the U.S.
EBANX plans to use the funding to continue its aggressive expansion across Latin America and reinforce its leadership in Latin America as it prepares for a U.S. IPO. The firm will also continue to recruit talent. FinTech recently hired Alexandre Dinkelmann as CFO, who brings his public company experience as CFO of TOTVS, the largest software company in Brazil. EBANX has grown at an exponential rate in recent years and processed over US$3.5 bn in volume and 150 mn transactions in 2020.
- BlockFi ($350 million)
BlockFi, building a bridge between traditional finance and blockchain technology to bring financial empowerment to clients globally, has announced the completion of its $350 million Series D funding round in March 2021, led by new investors, including Bain Capital Ventures, partners of DST Global, Pomp Investments, and Tiger Global. The investment round follows two prior rounds totalling $100 million within the last two years.
The new finance brings FinTech to a valuation of $3 billion and will enable further accelerated expansion into new markets, innovation in the product suite, and provide capital for select acquisition opportunities.
ALSO READ: Cool FinTech Report 2021