The Future of Fintech: Part Two

Last week, our team at Conduit sat down to identify and evaluate the leaders across three rapidly scaling fintech verticals: digital banking, corporate cards, and mobile wallets. In the second installment of our two-part series, we focused on recent entrants into three additional fintech verticals: wealth management, alternative financing, and digital payments.

Indicated by recent marquee financing rounds, including Vise AI’s $15$ million round in May and Pipe’s $60 million round in June, we’re thrilled to share our second report on the modern fintech sphere.

The global wealth management industry represents an increasingly ripe opportunity for disruption from well-funded digital startups. Put simply, the wealth management sector is an unsexy vertical that yields outsized impacts and returns within the broader fintech landscape. This distinct cohort of companies enables clients to build a personalized portfolio of assets while rapidly automating and delegating core processes for private managers.

Vise AI automates investment management for financial advisors using AI. The team built a full-stack platform spanning the entire lifecycle of the advisor-client relationship, including designing personalized portfolios for clients, managing portfolios, and providing on-going intelligence. Vise raised $15M in Series A financing in May 2020.

Responsive AI is a hybrid wealth advisor solution for banks and private managers. Responsive differentiates themselves by offering behavioral insights that enable advisors to identify and act on client opportunities and risks.

Bambu is a B2B wealth management platform that enables companies to make saving and investing simple and intelligent for their clients. The cloud-based wealth platform is powered by proprietary algorithms and machine learning tools. Bambu raised over $10 million in July 2019.

Pipe is a new way for SaaS companies to finance growth without equity dilution or venture debt. The platform gives clients instant access to cash for the full annual value of your monthly and quarterly subscriptions by syncing with existing subscription management, accounting, and banking systems to underwrite business. Pipe recently raised $50M back in June 2020.

Clearbanc is the fastest, most affordable way for founders to fund their business. The digital platform automates $10K to $10M checks into more than 2,800 companies using data science to identify high-growth funding opportunities across e-commerce, removing bias from decision making.

Capital is on a mission to power entrepreneurship through equitable and rapid financing. The company is building financial services for a new economy in which digital startups can receive a transparent analysis of their business with Fortune 500-grade analytics before fundraising.

Paxful is a leading peer-to-peer powered bitcoin marketplace and a universal money translator. By offering access to a massive network with over 300 financial networks that empower both merchants and buyers alike, Paxful creates opportunities for millions across the globe who don’t have access to traditional banking services.

Teampay is the first purchasing software built for modern, technology-enabled businesses. The platform’s products allow clients to request and approve expenditures in real-time. Critically, Teampay gives finance teams control and transparency while reducing reliance on manual processes, in turn enabling its customers to concentrate on building core processes.

Verifi offers dispute management services that have helped sellers retain revenue and stay focused on core business, as well as reduce costs for card-issuing banks on unnecessary refunds and card re-issuance. Verifi was acquired by Visa in 2019, yielding Visa the ability to offer brand-agnostic solutions while fostering collaboration across its payments ecosystem.

At Conduit, we connect the world’s best operator-investors and founders building the next generation of startups around the world.

As we scale our platform, understanding key market shifts across verticals will become increasingly vital. Our team will be digging deeper into emerging trends and first movers in the coming weeks, which you can find here.

VC investor in NYC.