Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Fintech In The Western Regions Will Bloom In 2017
[Image: 3066666-poster-p-1-5-fintech-startups-to...n-2017.jpg]

For fintech, 2016 was a year of reckoning. Scandals and layoffs killed industry buzz, and deal activity took a mid-year nosedive. Regulatory uncertainty in the U.S. loomed large, as did Brexit. For some companies, the environment led to a greater reliance on partnerships with big banks, with potential implications for the types of exits that investors could realize. For others, 2016 became a time to retrench and refocus.

Those efforts should start to pay off in 2017. Here, we highlight five U.S.-based fintech startups with growing traction that exemplify broader industry trends.


After flying under the radar for its first four years of operations, San Francisco-based Metromile dropped a bombshell in September: It had quietly raised nearly $200 million in a series of unannounced investment rounds, while at the same time positioning itself to grow nationwide as an independent auto insurer. Pay-per-mile auto insurance, the company’s core offering, is now poised to go mainstream.
For low-mileage drivers, Metromile’s typical fees—$35 per month, plus 5¢ per mile—can lead to significant savings. For higher-mileage drivers, the company is experimenting with partnerships. For example, it has teamed up with Uber to offer a specialized plan that encompasses personal and commercial coverage.
Insurance investors say Metromile has become an important proof point for the industry’s hottest topic: Measuring observable behavior in order to get more granular about risk. "It’s all about data and creating a customized risk profile for yourself," says Nabil Meralli, partner at InsurTech Venture Partners, a new London-based fund.
Watch out for Metromile, and "insurtech" more generally, in the year ahead.
[Image: 3066666-inline-i-1-5-fintech-startups-to...n-2017.jpg]

Real estate technology moved into the spotlight in 2016, with blockbuster rounds going to Compass ($75 million) and OpenDoor ($210 million). In parallel, crowdfunding real estate platforms have been proving their mettle—bootstrapped Sharestates, for example, recently passed $230 million in funded projects.
Cadre, as its name implies, is less interested in crowdfunding and more interested in capturing the large pools of capital required to fund major commercial deals. Cadre CEO Ryan Williams is just 28 (and a Harvard-educated serial entrepreneur), but he has the ear of some of finance and real estate’s top power brokers and a growing team of star players operating out of the startup’s headquarters, a loft-style office in Soho. (The digs come courtesy of Cadre investors Josh and Jared Kushner; family firm Kushner Properties owns Soho’s Puck Building, where it has installed Cadre and fellow Thrive Capital portfolio company Oscar Health.) Real estate heavyweight Mike Fascitelli sits on Cadre's board, and Andrew Borovsky, a veteran of Square and Apple, runs product.
"To date, our investors on the platform have been family offices, high net worth [individuals], pensions, endowments," Williams says. "We think we can build a strong brand and sense of loyalty, almost social proof, at the top of the investing pyramid."

Forum Jump:

Users browsing this thread: 1 Guest(s)