Funding News

Weekly Funding Highlights – 14 February 2024

Welcome to our latest Weekly Funding Highlights! In this roundup, we cover developments across the funding landscape, including strategic investments, funding rounds, and innovative initiatives from key players in the industry.

Bugcrowd secures $102m (€95m) in Series E to bolster crowdsourced security services

Bugcrowd, a leader in AI-powered crowdsourced security solutions, has raised $102 million in a strategic growth funding round led by General Catalyst, with contributions from existing partners Rally Ventures and Costanoa Ventures. The funding will accelerate Bugcrowd’s global expansion, support continuous innovation on the Bugcrowd Platform, and explore strategic mergers and acquisitions (M&A) opportunities. Bugcrowd’s unique approach leverages AI to connect hackers and customers for identifying and addressing security vulnerabilities. The investment will be used to enhance Bugcrowd’s market presence, drive platform innovation, and pursue strategic M&A to provide added value. The funding round has led to new appointments to Bugcrowd’s Board of Directors and advisory board, emphasizing Bugcrowd’s commitment to redefining crowdsourced security. In 2023, Bugcrowd facilitated the discovery of nearly 23,000 high-impact vulnerabilities, potentially preventing up to $100 billion (€93.5 billion) in breach-related costs. The company achieved substantial growth, adding over 200 clients, including OpenAI, T-Mobile, Rapyd, and ExpressVPN. Read more

Dutch FinTech Finom raises €50m to bolster SME banking services

European challenger bank Finom, catering specifically to SMEs and freelancers, has secured €50 million in a Series B equity funding round. Founded in 2019 and based in the Netherlands, Finom focuses on providing a comprehensive financial product tailored to the unique needs of small businesses. The funding round was co-led by Northzone and General Catalyst, with additional investments from Target Global, Cogito Capital, Entrée Capital, FJLabs, and S16vc. Finom’s platform offers quick online bank account openings with IBANs for cross-border transactions, physical and virtual bank cards, sophisticated expense management tools, and integration with leading accounting software. The funds will support Finom’s plans for expansion across the Eurozone and the localization of its services in additional markets. Currently serving around 85,000 customers in Germany, Spain, France, Italy, and the Netherlands, Finom aims to streamline financial services for SMEs, saving them time and money with its integrated product lineup covering banking, payments, invoicing, and more. Read more

Nucleus Security secures $43m (€40m) in Series B funding

Nucleus Security, a pioneer in Risk-Based Vulnerability Management, has secured $43 million (€40 million) in a Series B funding round led by Arthur Ventures and Lead Edge Capital. The funds will be utilized to accelerate product innovation, research, and development, reinforcing Nucleus Security’s position in vulnerability management. The company aims to revolutionize enterprise risk management by integrating infrastructure, cloud, and application vulnerabilities into a unified platform, effectively mitigating cyber threats. The injection of funds will support their mission to redefine how businesses handle risk exposure across digital landscapes. Notably, strategic investor In-Q-Tel (IQT), associated with the U.S. national security community, has joined, emphasizing Nucleus’s commitment to enhancing its platform for government agencies and contributing to global cybersecurity resilience. Nucleus Security CEO Steve Carter highlighted the importance of last-mile processes in delivering actionable vulnerability information, expressing that the funding will accelerate their vision of providing a unified platform for effective cybersecurity response. Read more

Parisian fintech Pennylane raises €40M at €1B valuation

Paris-based fintech Pennylane has raised €40 million in a Series C funding round, achieving a valuation of €1 billion and becoming France’s latest unicorn. The startup, founded in 2020, offers a centralized financial management and accounting platform for startups and SMEs. Pennylane aims to streamline financial data, allowing accountants to focus on consultancy rather than routine tasks. The company has experienced rapid growth, with a 40x increase in SME users in the past two years. The funds will be used to accelerate growth, with plans to leverage AI for smarter tools and expand the platform’s capabilities. Sequoia Capital and DST Global are among the investors supporting Pennylane’s growth. Read more

Estonian core banking provider Tuum bags €25m as targets DACH and Middle East

Estonian core banking provider Tuum has successfully raised €25 million in a Series B financing round led by CommerzVentures, a specialist VC fund. Tuum, established in 2019 by Estonian IT professionals with experience in digitizing major Nordic banks, offers a cloud-based core banking platform. This platform aims to replace antiquated legacy IT systems, enabling financial services providers to quickly and efficiently launch new products. The funding, which includes contributions from Speedinvest and existing investors, is intended for product and market development. Tuum plans to expand its presence in the DACH region, southern Europe, and the Middle East, where it will open an office. The funds will also be used to enhance product offerings, providing a more tailored alternative to generic approaches by other cloud-native providers. Tuum, formerly known as ModularBank, has customers in 10 countries, particularly in the UK and the Nordics. The Series B funding marks a significant step for Tuum in redefining core banking for a digital-first future, according to Myles Bertrand, the CEO of Tuum. Read more

Agricultural Fintech Traive Secures $20M (€18.6M) for Expansion and New Product Launch

Agricultural fintech Traive has secured $20 million (€18.6 million) in funding led by Banco do Brasil through the BB Impacto ASG I Fund, managed by Vox Capital. The investment is earmarked for technological advancements, expanding operations in Brazil, and launching a credit trading platform connecting the supply chain and capital markets. Traive, utilizing Artificial Intelligence (AI), evaluates over 2,500 data points to produce risk profiles tailored to the agricultural sector. The investment aims to support Traive’s technological improvements, operational expansion, and entry into new markets for risk diversification. Banco do Brasil anticipates leveraging Traive’s solutions to expedite its digital transformation and enhance products and services for the agricultural sector. The BB Impacto ASG Fund focuses on startups with positive societal and environmental impacts, targeting Seed and Series A stages. Read more

Navro secures EMI licence and raises $14m (€13m) to revolutionise global payments

Navro, formerly Paytrix, has raised $14 million in a funding round led by existing investors Bain Capital and Unusual Ventures, with participation from Motive Partners and Fin Capital. Concurrently, Navro has obtained an Electronic Money Institution (EMI) license from the Central Bank of Ireland, in addition to the UK’s Financial Conduct Authority (FCA) approval. The funds will help Navro meet regulatory capital requirements and support expansion plans to enhance its global payments network. The company aims to provide seamless and regulated payment solutions to international businesses, addressing challenges in various industries. Navro’s rebranding reflects its expanded mission beyond payments, focusing on assisting customers in navigating growth into new markets efficiently. Ireland’s Minister for Finance, Michael McGrath, congratulated Navro on securing its EMI license, recognizing it as an important milestone for the fast-growing company. Read more

Hong Kong InsurTech MediConCen secures $6.85m (€6.4m) in latest funding round

InsurTech firm MediConCen Limited has raised $6.85 million (€6.4 million) in a Series A funding round led by HSBC Asset Management, with participation from existing investors G&M Capital, ParticleX, and new investor Wings Capital Ventures. The funding brings MediConCen’s total funding to $12.7 million (€11.8 million) and will support the company’s expansion plans in international markets, particularly the Middle East and Southeast Asia. MediConCen specializes in automating insurance claims using AI and blockchain to streamline the claims process, aiming to improve efficiency and customer satisfaction. The Hong Kong-based company, a member of Cyberport’s community, participated in Cyberport Incubation Programme in 2018, and the funding will help it further its mission to revolutionize the insurance claim experience. Read more

FinTech startup finally secures $10m (€9.3m) boost for SMB finance revolution

FinTech startup finally has successfully secured $10 million (€9.3 million) in a funding round led by PeakSpan Capital, with additional participation from Active Capital. The funding will support finally’s mission to revolutionize financial operations for small and medium-sized businesses (SMBs). finally offers an integrated suite of services, including bookkeeping, expense management, bill payment, and payroll, in a single automated platform. The company plans to aggressively expand its go-to-market strategy, focusing on product enhancement. Initiatives include the development and launch of mobile versions of key applications to cater to on-the-go financial management and the strengthening of sales teams. Read more

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