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Fintech Four: Banno, Borro, Personetics & Auction.com are on a Roll

By Jim Bruene on March 5, 2014 12:40 PM | Comments
It's been a crazy week in fintech, and it's only Wednesday morning. Because my brain can hold no more than four stories at a time (and that's a stretch), it's time to publish a "fintech four" mid-week. I don't know which of these is more dramatic, so I'll go in alphabetic order: 

1. Auction.com joins the billion-dollar fintech club

Thumbnail image for auction.jpgI'm not sure everyone considers Auction.com a fintech play, but as an online asset sales platform (which moved $7 billion last year), it's close enough for me. It just raised a fresh $50 million from Google Ventures at a valuation of $1.2 billion. So I'll be adding Auction.com to our "Fintech billion-dollar club." 

>>> Metrics and more from Bloomberg here.


2. Banno acquired by Jack Henry

banno.jpgWhile we don't know the $$ number, given the traction Finovate alum Banno had in the market (375 bank clients), and the relatively high valuations in the fintech space these days ($1.75 billion for Stripe), this must have been a pretty nice payday for the owners and investors in Iowa-based Banno (formerly T8 Webware). Founder Wade Arnold is staying on at Jack Henry and is super excited about his future with the Kansas City-based technology vendor. 


English: Wordmark of Borro, the characters &qu...
3. Borro borrows $112 million

In one of the biggest fundraising rounds in fintech history, UK-based Borro landed $112 million to further its high-end online pawn brokerage business. I met founder Paul Aitken last fall and was impressed with the product, which allows consumers to borrow against non-liquid assets like that Jacob Lawrence in the hall, at pretty high rates (3% to 4% per month). Until then, I had no idea there was a large, underserved (near prime?) market holding high-end assets (outside Downton Abbey anyway). Even so, I was shocked to see a $112 million round. While terms of the deal weren't disclosed, I have to believe all or part of the money is debt, not equity. So I'm not going to add Borro to the billion-dollar club, yet. Apparently online lending is back! 

>>> Average loan amount = $12k (against a $20k value)... see Press release
>>> TechCrunch breaks down the Borro loan process and metrics here


4. Personetics is on a roll

pesonetics.jpgAt this week's Bank Innovation great event in Seattle, I finally had a chance to meet face-to-face with Personetics, the Sequoia-backed "predictive financial services engine." I've been impressed with what I've read about the company, and loved the Fiserv demo at FinovateEurope last month (demo here) featuring a forward-looking PFM piece powered by Personetics. But I had no idea how much traction the company was gaining in less than three years since its A-round. While I can't name names, if even one of these deals moves into production, it has the potential to change the face of online banking. 

>>> Fiserv demo at FinovateEurope featuring insights powered by Personetics here (12 Feb 2014)

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