PiperJaffrayCompanies OverviewOfTheEvolvingFinTechLandscape Aug 23 2015

Overview of the Evolving FinTech
Landscape
Selected
Private
Companies
Financial Technology
Innovators,
August 2015
Michael Grondahl
Senior Research Analyst

Diversified Business Services and Technology
612 303-6788
michael.j.grondahl@pjc.com
Jason Deleeuw, CFA
Senior Research Analyst

Financial Services and Technology
612 303-6989
jason.s.deleeuw@pjc.com
Dain Haukos
Research Analyst
Diversified Business Services and Technology
612 303-6459
dain.a.haukos@pjc.com
Eric Robinson
Research Analyst
Financial Services and Technology
612 303-6156
eric.m.robinson@pjc.com
Piper Jaffray does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may
have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their
investment decisions. This report should be read in conjunction with important disclosure information, including an attestation under Regulation Analyst
certification, found on pages 183 - 185 of this report or at the following site: http://www.piperjaffray.com/researchdisclosures
August 2015
F I N T EC H I N N O VA TI O N
Six Categories of
FinTech
We have identified six Financial Technology (FinTech) categories in which we believe

significant innovation is occurring and changing the investment landscape.
Marketplace Lending: Marketplace lenders have emerged as a new breed of lender by
providing a highly efficient platform for matching borrowers and investors at an interest
rate that can enable significant interest expense savings for borrowers and attractive
relative risk-adjusted returns for investors. Marketplace lending platforms leverage their
web-based and data driven technologies to provide certain consumer and business loan
products more effectively than traditional lending institutions. We estimate total U.S.
marketplace lending originations of $10B in 14, which is very small relative to the
addressable markets in the product categories currently targeted by marketplace lenders.
Robo-Advisors/Personal Finance/Asset Management: Robo-advisors are shaking up the
traditional asset management industry by leveraging technology to create a scalable
advisory business for the masses. Robos generally have lower fees and lower minimums,
leverage low-cost ETFs, and are targeting millennials via digital channels.
Money Transfer: Within the ~$583B money transfer market, there is a surge of startups
leveraging technology to disrupt the large legacy players. Offering lower and much more
transparent pricing, new firms are competing on price as well as the increasing need for
scalable online mobile money transfer platform. Many of these startups look promising, in
our view.
New Payment Innovators: The payments industry is seeing a surge in tech innovation that is
being driven by 1) growing payments complexity, 2) the transition towards
mobile/omnichannel, 3) heightened security and 4) loyalty programs. Two key areas where
new innovators are enhancing the payments ecosystem are digital/e-commerce/mobile
payments and POS payment systems.
Corporate Services: Wide-ranging in nature, corporate services are enabling businesses to
improve operational performance through a variety of channels. Included in this section are
innovative startups in the areas of data analytics, fixed income trading and HR services.
Crowdfunding: Crowdfunding platforms have the potential to increase entrepreneurship by
expanding the pool of investors and audiences into new sources of funding that have similar
ideas and a desire to support a project. Whether it is rewards-based, equity-based or
charity-based, the broader crowdfunding industry aims to democratize aspects of the
fundraising process and provide a new avenue for capital to early-stage investing.
2 | Overview Of The Evolving FinTech Landscape
Piper Jaffray Investment Research
August 2015
TABLE OF CONTENTS
Fintech Innovation ............................................................................................................... 2

Financial Institutions In Fintech ........................................................................................... 6
Notable Recent Fintech Transactions .................................................................................. 6
Conferences ......................................................................................................................... 8
Financial Institutions In Fintech ........................................................................................... 9
Direct Investment From Financial Institutions ..................................................................... 9
#1: Marketplace Lending ................................................................................................... 11
Company Overviews ......................................................................................................... 25
#2: Todays Wealth Management:Robo-Advisors ......................................................... 52
#3: Money Transfer .......................................................................................................... 82
#4: New Payments Innovators ......................................................................................... 101
Company Overviews ....................................................................................................... 107
#5: Corporate Services ..................................................................................................... 133
#6: Crowdfunding ........................................................................................................... 153
Important Research Disclosures ....................................................................................... 183
Exhibits
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
Fintech Private Companies ............................................................................................ 5

Recent Fintech Transactions ......................................................................................... 6
Notable Fintech Investors In The Last Year .................................................................. 7
Fintech Conferences ...................................................................................................... 8
AXP Ventures ............................................................................................................. 10
Typical Marketplace Lending Platform Dynamics ...................................................... 11
Comparison Of Different Types Of Marketplace Lenders .......................................... 12
Example Of A Typical Lending Club Marketplace Transaction ................................. 13
Example Of A Typical Prosper Marketplace Transaction ........................................... 13
Marketplace Lending Revenue Drivers ....................................................................... 14
Example Of Marketplace Lending Economics ............................................................ 14
Select Marketplace Platform Origination Volumes ..................................................... 15
Sample Of Interest Rates & Fees For Marketplace Lenders ......................................... 16
Unsecured Consumer Marketplace Loan Market Size ................................................. 17
Unsecured Consumer Marketplace Loan Growth Forecast ......................................... 18
U.S. Consumer Loans Outstanding ............................................................................. 18
Small Business Loans Outstanding <$1M As Of 1Q15 ................................................ 19
Small Business Marketplace Lending Market Size ....................................................... 20
Piper Jaffray Investment Research Overview Of The Evolving FinTech Landscape | 3
August 2015
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
Small Business Marketplace Lending Growth Forecast ............................................... 20

AUM Of Top 11 Robo-Advisors ................................................................................. 53
Betterment Web Page .................................................................................................. 55
Personal Capital Web Page ......................................................................................... 56
Wealthfront Web Page ................................................................................................ 58
Wealthfront Investment Web Page .............................................................................. 58
Fee Comparison .......................................................................................................... 60
Growth Of IRA And 401(K) Assets ............................................................................. 61
FNGN Key Metrics ..................................................................................................... 64
High Level Pricing Data .............................................................................................. 84
Pricing U.S. To India ................................................................................................... 85
Pricing U.S. To China ................................................................................................. 86
Pricing U.S. To Philippines.......................................................................................... 87
Pricing U.S. To Mexico ............................................................................................... 88
Pricing U.S. To France ................................................................................................ 89
Internet And Bank Account Penetration By Country ................................................... 93
Klarna Purchase Screen ............................................................................................. 104
Square Products ........................................................................................................ 105
Algomi Trading Dashboard ...................................................................................... 135
Ayasdi Map Example ................................................................................................ 136
Fundbox Dashboard ................................................................................................. 137
Crowdfunding Platform Examples ............................................................................ 154
Sample Crowdfunding Platform Economics .............................................................. 154
Global Crowdfunding Platforms $ Volume Raised ................................................... 155
North America Crowdfunding Platform $ Volume Raised Forecast .......................... 156
Equity Crowdfunding Growth By Quarter ................................................................ 157
Lifecycle Of An SEC Regulation A+ Capital Raise ................................................... 158
Appendix: Coverage Universe .................................................................................. 182
August 2015
Exhibit 1
FINTECH PRIVATE COMPANIES

Marketplace Lending
Robo-Advisors
Money Transfer
Payments
Corporate Services
Crowdfunding
AssetAvenue
Acorns
Azimo
2Checkout
Advyzon
Angel.me
Auxmoney
Betterment
Boom Financial
Adyen
Algomi
AngelList
Avant
BillGuard
PeerTransfer
Apriva
Ayasdi
AngelsDen
BetterFinance
Blooom
Regalii
Bigcommerce
BlueVine
appbackr
Biz2Credit
Credit Karma
Remit2India
Bill.com
Digital Reasoning
Appsfunder
Bond Street
Credit Sesame
Remitly
BillTrust
ebankIT
bolstr
C2FO
Digit
Ripple Labs
Bindo
Expensify
Causes
Can Capital
DriveWealth
Skrill
Bluefin Payment Systems
FeedZai
CircleUp
China Rapid Finance
Etoro
Small World Financial Servies
BlueSnap
Finsphere
Crowdcube
CircleBackLending
Financial Guard
The Currency Cloud
Boku
FINTRX
Crowdfunder
CommonBond
FlexScore
TransferWise
Cardflight
FundBox
Crowdrise
Credibly
FutureAdvisor
Venmo
CashStar
Kensho
EarlyShares
Daric
Hedgeable
WeSwap
Datacap Systems
Kusiri
Equitynet
Dealstruck
HedgeCoVest
WorldRemit
Dwolla
Lootsie
Experiment
DriverUp
Jemstep
Edo Interactive
MarketProphit
FirstGiving
Earnest
Kapitall
Fortumo
Meniga
Fundable
FinancieIt
Loyal3
GoCardless
MiiCard
FundAnything
Fundera
MarketRiders
inDiniero
Money.net
FundersClub
Funding Circle
Motif Investing
Intubus
Namely
FundingTree
Groundfloor
Nutmeg
iZettle
Nomis Solutions
FundRazr
Jimubox
Openfolio
Klarna
OpenGamma
FundRise
Kabbage
Personal Capital
Lightspeed
Orchard Platform
GiveForward
Kiva
Propel(x)
MineralTree
Quantopian
GoFundMe
Lendico
Qapital
Miura Systems
Robinhood
Gust
LendingHome
Rebalance IRA
Mozido
SecureKey
HealthiosXChange
lendio
SigFig
OoBi
Symphony
HoneyFund
Lendkey
SmartAsset
Payfirma
Trulioo
Ifunding
LendStreet
TradeHero
PayitSimple
Ycharts
Indiegogo
LiftForward
Wealthfront
Payleven
Zenefits
InvestedIn
LoanDepot
Wealthminder
PayNearMe
ZenPayroll
InvestinZone
Lufax
WealthyX
Payoneer
KickStarter
MarketInvoice
WiseBanyan
Paytm
MicroVentures
Money360
Powa Technologies
OneVest
P2BInvestor
Poynt
Patreon
Patch of Land
Revel Systems
Prodigy Network
Pave
SayPay Technologies
Quirky
Peerform
Sellfy
Razoo
PPDAI
ShopKeep
SecondMarket
Pret D'Union
SimplyTapp
SeedInvest
Primarq
Spreedly
Seedrs
Prodig Finance
Square
SharesPost
Prosper
Stripe
StartEngine
Rate Setter
Subledger
WeFunder
Realty Mogul
SumUp
YouCaring
Realty Shares
SupportPay
Receivables Exchange
Swipely
Renrendai
Tabbedout
Sofi
Taulia
Upstart
Trustly
Zopa
Vend
WePay
Zuora
Source: Piper Jaffray
August 2015
Financial Institutions
in FinTech
Venture capital and corporate M&A in the payments space has been strong due to large
growth opportunities and a low interest rate environment. Notably, we have seen banks
and legacy financial institutions make significant investments in FinTech startups
(American Express [AXP], MasterCard [MA], Visa [V], JP Morgan [JPM], Goldman Sachs
[GS] and many others) and we have also seen financial institutions acquire more mature
startups (Heartland Payment Systems [HPY], Blackhawk Network Holdings [HAWK],
Intuit [INTU] and Ingenico). In total, according to a report by Accenture, global FinTech
investment in 2014 was ~$12.2B with the U.S. receiving just less than $10B of that total. We
believe that current demographics and the fusing of financial institutions and technology
will continue to provide numerous opportunities.
Notable Recent
FinTech Transactions
Below we highlight some of the recent notable transactions within the FinTech space:
Exhibit 2
RECENT FINTECH TRANSACTIONS

Target/ Investment
Payoneer
Yodlee
Stripe
Kabbage
CircleBack Lending
LiftForward
XE
XOOM
Achievers
IME
Azimo
Achievers Corp
Shopify
Robinhood
Zenefits
Fundtech
Applied Predictive Technologies
LearnVest
Realex Payments
Paydiant
TrialPay
LoopPay
WorldRemit
TransferWise
LevelMoney
Lending Club
Stripe
Kensho
WealthFront
HiFX
Acquirer/ Investor
Multiple Parties
Envestnet
Visa, AXP, PE Firms
Multiple Parties
Multiple parties
Multiple parties
EEFT
PayPal
HAWK
EEFT
Multiple parties
Blackhawk Netowrk
Public
Multiple parties
Multiple parties
D+H
MasterCard
NorthwesternMutual
Global payments
PayPal
Visa
Samsung
Technology Crossover
Ventures
Accel
Andreessen Horowitz
Index Ventures
CapitalOne
Public
Multiple parties
Multiple parties
Multiple parties
EEFT
Business
Payments
Financial Data
Payments
Marketplace Lending
Marketplace Lending
Marketplace Lending
Online currency data platform
Money Transfer
Corporate Incentives
Money Transfer
Money Transfer
Rewards
Payments
Commission Free Trading
Cloud based HR/Payroll
Payments
Data Analytics
Robo-Advisor
Payments
Payments
Payments
Payments
Money Transfer
Transaction
Series E
Acquisition
Not Disclosed
Series E
Series A
Debt Financing
Acquisition
Acquisition
Acquisition
Acquisition
Series B
Acquisition
IPO
Series B
Series C
Acquisition
Acquisition
Acquisition
Acquisition
Acquisiton
Acquisition
Acquisition
Series B
Date
Amount ($M)
8/12/2015
$50
8/10/2015
$590
7/28/2015
<$100M
7/24/2015
$120
7/21/2015
$18
7/20/2015
$250
7/6/2015
$100
7/1/2015
$890
6/30/2015
$110
6/22/2015
$83
6/15/2015
$20
6/11/2015
$110
5/21/2015
$1,270
5/7/2015
$50
5/6/2015
$500
4/30/2015
$1,250
4/27/2015
$600
3/25/2015
$250
3/25/2015
$125
3/2/2015
$280
2/27/2015 Not Disclosed
2/18/2015
$250
2/17/2015
$100
Money Transfer
Series C
1/25/2015
$58
Personal Finance
P2P Lending
Payments
Financial Analytics
Robo-Advisor
Money Transfer
Acquisiton
IPO
Series C
Series A
Series D
Acquisition
1/12/2015
12/11/2014
12/2/2014
11/24/2014
10/27/2014
3/11/2014
Not Disclosed
$1,000
$70
$15
$64
$242
Source: Piper Jaffray, Company Filings, Company Websites
August 2015
Top Venture Capital

Funds Show Strong
Interest In Fintech
Over the last several years, we have seen numerous transactions with top venture capital
funds into various FinTech companies. These names include the above plus: RRE Ventures
(Boom Financial, OnDeck), Y Combinator (WePay and Coinbase), Andreesen Horowitz
(Coinbase and Dwolla), and Google Ventures (Poynt and ZenPayroll), among others. We
believe that this showcases the large melding of the markets between financial institutions
and technology companies as the tech side catches up with financial institutions need for
security, compliance and mobile platforms, while meeting consumer demands for ease and
convenience.
Recent M&A/ IPO

Activity
We have already seen that capital for FinTech startups continues to be readily available and
we believe that much of this availability is due to the ease in finding an exit point for the
original venture capital partners. This is highlighted by the steady growth seen within the
FinTech market for mergers and acquisitions as well as IPOs. We highlight that according
to CB Insights, the FinTech sector saw 76 M&A deals and one IPO during the March
quarter after 53, 53, 55 and 53 transactions (both IPO and M&A) in 4Q14, 3Q14, 2Q14 and
1Q14 respectively. We believe that this level of activity will remain solid as businesses and
financial institutions continue to embrace FinTech into their respective business models.
FinTech Acquirers
While the venture capital funds continue to focus on investment in the more early stage
startups, corporate business development and private equity funds are providing the exit
capital for the original venture funds. Notably, some of the leaders in FinTech M&A have
been smaller, more processing and payment oriented names but we do see a few blue chip
corporate acquisitions (SAP, Xerox, Capital One Financial, Blackhawk Network,
MasterCard and Google).
Exhibit 3
NOTABLE FINTECH INVESTORS IN THE LAST YEAR

Top Fintech Investors
Name
1 Heartland Payment
Category
Corporate - Payment processing
2 Intuit
Corporate - Business management software
3 Vista Equity Partners
PE
4 Avalara
5 Bankrate
Corporate - SMB tax management software

Corporate - Personal media and finance
6 Blackhawk Network
Corporate - Prepaid/ financial payments
7 Capital One Financial
Corporate - Diversified financial services
8 Epicor Software
9 Huobi
10 Ingenico
Corporate - Commercial management

Corporate - China based bitcoin exchange
Corporate - Business hardware
Targets
Touchnet Information SystemsMCS Software
Payroll 1
Dinerware
PC America
Xpient
Liquor POS
PaySuite
KDK Software
Acrede
ZeroPaper
PlaybookHR
Prestwick Services
Check
GoodApril
Tibco Software
Transfirst
Blackbaud
SumTotal
VAT Applications
Eztax
Moseo
Caring, Inc.
Wallaby Financial
Achievers
Parago
InteliSpend
CardLab
Retailo
Monsoon
Level Money
AmeriCommerce
Adaptive Path
ClearXchange
Spectrum HR
NSB Retail Systems
Quickwallet
Qukuai.com
GlobalCollect
Source: Piper Jaffray, Company Filings
August 2015
Conferences
Below we have listed out several of the upcoming important FinTech conferences in the
U.S:
Exhibit 4
FINTECH CONFERENCES
Conference
Location
Date
Mobile Payments Conference
Chicago
August 31-September 2, 2015
ATM & Mobile Innovation Summit
Washington DC
September 9-11, 2015
WesPay Payments Symposium
Las Vegas
Finovate Fall
NYC
PayThink
Las Vegas
Mobile Banking and Payments USA 2015
NYC
October 5-6, 2015
FinDEVr
San Francisco
October 6-7, 2015
Mobile Shopping Summit 2015
Palm Springs
October 14-16, 2015
Money 20/20
Las Vegas
October 25-28, 2015
Investors' Conference on Marketplace Lending
NYC
October 29, 2015
Small Business Banking
Nashville
November 16-18, 2015
Marketplace: Lending & Investing
NYC
November 4-5, 2015
International Money Transfer World (IMTC)
Miami
November 9-12, 2015
Inside Bitcoins San Diego
San Diego
December 14-16, 2015
Finovate Spring
San Jose
May 10-11, 2016
Source: Piper Jaffray Research
August 2015
Financial Institutions
in FinTech
Banks and financial institutions have not typically been early adopters of new technological
advancements, partly due to the significant amount of regulation within the industry. In the
past, when a bank wanted to develop a new technology, it would hire a team to work
within the bank and build whatever was required. This method limited technology
adoption within the banks and financial institutions in two ways: 1) A banks core
competency and service offerings are not the same as a tech companys and they attract a
different set of human capital than a tech company would. This limited what banks could
and could not undertake as far as technology projects were concerned. 2) Organizing,
developing and managing a massive technology project was outside of the realm of many
bank management teams. This also slowed/stunted technology adoption.
We are now seeing greater adoption of new technologies within financial institutions
thanks to a variety of factors, though we believe there are two main drivers behind the
current rate of adoption:
Direct Investment
From Financial
Institutions
1.
Consumer demand. In the U.S. alone, Millennials are a rising generation with
~76M members, the vast majority of whom are perfectly comfortable using their
smart phones for transactions vs. going to the local bank branch.
2.
Improving technology and open application programming interface (API). Over

the past two decades, computing power and technology have obviously improved
dramatically. When financial institutions provide an open Application
Programming Interface, this allows outside developers programmatic access to the
institutions proprietary software applications. In other words, this allows 3rd party
developers to access the banks software and build additional apps/platforms off of
this data. The cost of opening up an institutions API to outside programmers is
significantly lower than the institution undertaking the whole development process
itself. According to a study by Accenture, 40% of banks surveyed have already
developed some sort of open technology platform with 56% anticipated to offer
some sort of open platform with in the next two years. In addition to lower costs,
we believe that financial institutions sit in an enviable position as the open
interface affords the institution the option to try before buying. Specifically, if a
developer designs a product that is particularly revolutionary, the institution
arguably would be one of the earliest parties to realize this and could move quickly
in acquiring that technology. We also believe that the open interface investment
greatly increases financial institutions speed to market. Lastly, the institution can
change access to its API at any time.
In addition to opening the platform interface, we are beginning to see established financial
institutions place direct investments in start-ups. Large financial institutions have
significant amounts of capital that need to generate a return, where FinTech start-ups often
lack the capital of the established financial institutions but often times have more return
generating opportunities. We highlight several blue chip financial institutions that have
opened venture capital funds including American Express, JP Morgan, Goldman Sachs,
MasterCard, Visa, BBVA, HSBC, Santander and Sberbank, to name a few.
JP Morgan: JP Morgan (JPM, not covered) has made investments in Motif Investing
(personal finance/robo-advisor), Prosper (P2P lending), Square (mobile payments and
processing), Symphony (financial institution workflow software) and Can Capital
(alternative capital platform for small business).
August 2015
Goldman Sachs: We highlight that Goldman Sachs (GS, not covered) also has an
ownership interest in Motif Investing and Square but the rest of its notable investments
are more focused around high frequency trading (Perseus), data/analytics (Kensho) and
digital currencies (Circle).
MasterCard: MasterCard (MA, covered by Jason Deleeuw) has also been actively
investing in FinTech in a variety of companies including Dynamics (interactive,
programmable magnetic stripe), Monitise (mobile banking technology), Mozido
(cloud-based white label payments platform) and Nymi (biometric authentication), to
name a few. While MA has generally been seen as an innovator in the FinTech
industry, they also remain active in M&A activity acquiring eight companies alone in
14 including C-sam (digital/mobile wallet engineering) and Pinpoint (loyalty &
rewards services). Most recently, MA announced the acquisition of Applied Predictive
Technologies (cloud-based analytics).
Visa: Visa (V, covered by Jason Deleeuw) has also been viewed as a large innovator in
the FinTech space and similar to MA, remains active in making direct investments. V
has made investments in many FinTech companies including DocuSign (Online secure
transactions) and LoopPay (mobile commerce). Most recently in 2015, Visa announced
an investment in Stripe (e-commerce payment gateway).
American Express: American Express (AXP, covered by Mike Grondahl) has

undergone a relatively significant change to its business model as it actively eliminated
a few of its co-brand partnerships such as Costco and Jet-Blue as it believes that it sees
better opportunities elsewhere in the markets. While the hole from the loss of the cobrand relationships is significant, we believe that a part of AXPs efforts to fill that
hole is through targeted investments via its venture capital fund as a supplement to its
efforts through bigger programs like OptBlue, Plenti and Serve/BlueBird.
Exhibit 5
AXP VENTURES
Investment Description
Bill.com
Invoicing/cash flow/bill payment
management software for small
businesses
Capillary
Cloud based CRM
Cignifi
Enigma
If Only
Instacart
Intacct
Kiip
Series Investment Investment Description

$50M Series F
LearnVest Personal Financial
Management
$4.5M Venture
Round
Data analytics
$4.9M Series B
Database of public records
$4.5M Series A
Marketplace for purchasing experiences $12M Series A
with celebrities
Online grocery service
$44M Series B
Finance/accounting software
Mobile rewards
Venture Round
Ness
Restaurant
Purchased by OpenTable
recommendation
Persado
Copywriting automation
Radius
Small business analytics $8.4M Series A
Retail Next Analytics platform
$125M Series E
Saving Star Paperless coupon
Stripe
Payments
Skytree
Machine learning
Series Investment
Purchased by Northwestern
Mutual
$9.1M Series D
$70M Series D
$18M Series A
August 2015
# 1 : M A R K E T P L A C E L E N D IN G
Marketplace lenders have emerged as a new breed of lender by providing a highly efficient
platform for matching borrowers and investors at an interest rate that can enable
significant interest expense savings for borrowers and attractive relative risk-adjusted
returns for investors. A form of crowdfunding, marketplace lending platforms have created
a new avenue to access credit outside of traditional means.
New Lending Model
With Significant
Growth Potential
Marketplace lending platforms leverage their web-based and data driven technologies to
provide certain consumer and business loan products more effectively than traditional
lending institutions. Some platforms enable investors to bid on loans offering the lowest bid
interest rate, while others set defined interest rates based on proprietary underwriting
models. We estimate total U.S. marketplace lending originations of ~$10B in 14 (our
estimate assumes ~$6B/$4B in consumer/small business loan originations), which is very
small relative to the addressable markets in the product categories currently targeted by
marketplace lenders.
The most successful marketplace lending product thus far has been an unsecured consumer
installment loan typically used to refinance high-cost credit card debt, but also for other
personal loan uses. For instance, the largest marketplace lender, Lending Club (LC, not
covered), reports that it saves borrowers an average of 32% on interest costs by reducing
the interest rate an average of 7% points vs. the rate on outstanding credit card balances.
The marketplace lending model has also proven viable for the refinance and new
origination of education loans and medical loans, in addition to small business lending
products and auto loans.
Exhibit 6
TYPICAL MARKETPLACE LENDING PLATFORM DYNAMICS
Sources: Company Data, Piper Jaffray
August 2015
Marketplace Lending
Differentiation
Some of the key marketplace lending differentiators include:

1)
2)
3)
4)
the technology/underwriting platforms that match borrowers and investors,

the types of loan products,
investor funding sources, and
servicing capabilities.
Marketplace platforms may match borrowers and investors through peer-to-peer (P2P),
peer-to-business (P2B), investor to peer (B2P) or investor-to-business (B2B). Some platforms
enable direct contact between investors and borrowers, while others like Lending Club set
defined interest rates for lenders. Models like Funding Circle allow for lenders to bid on
loans offering borrowers the lowest bid rate. Some marketplaces deploy money from large
and small investors, while other marketplaces raise lending capital only from institutions
and accredited investors. Other marketplace lenders hold loans (credit and interest rate
risk) on their balance sheet. Some platforms apply the marketplace lending model to fund
real estate investment projects and transactions including house flipping loans and
commercial real estate loans. In general, the marketplace lending model has grown in loan
product categories where the marketplace can more efficiently access borrowers and fund
those borrowers at lower interest rates than traditional lending institutions.
Exhibit 7
COMPARISON OF DIFFERENT TYPES OF MARKETPLACE LENDERS

Loan Type
Loan Product
Examples
Consumer
Unsecured Installment
Student/Education
Medical
Auto
Investor Types
Retail, Accredited &

Institutional
Small Business
Debt Consolidation
Purchase Finance
Working Capital
Remodel/Expansion
Retail, Accredited &
Institutional
Company
Examples
Real Estate
Debt Financing
Short Term/Bridge
Term Debt
Accredited &
Institutional
August 2015
Marketplace Lending
Transaction
Examples
We highlight below a couple examples of a marketplace lending transaction from Lending

Club and Prosper Marketplace.
Exhibit 8
EXAMPLE OF A TYPICAL LENDING CLUB MARKETPLACE TRANSACTION

Step 1
Borrower Files An
Application With LC
Step 2
Platform Performs
Credit Check
A borrower files an
application for a certain
$ amount loan using
Lending Club's
marketplace.
Platform's underwriting
process verifies the
borrower's identity,
history and credit (FICO,
credit reports, data &
analytics from
application process). If
approved, a unique LC
Loan Grade credit grade
and interest rate are
assigned to borrower.
Step 3
Loan Request Placed
In Marketplace
Step 4
Borrower's Loan
Is Funded By WebBank
Step 5
LC Purchases Loan
From WebBank
Step 6
LC Manages &
Services The Loan
Approved loan requests

are placed in the
marketplace to attract
investor commitments.
During this period, LC is
also performing additional
verification checks on the
borrower.
Once a loan is fully funded

by investors, partner
WebBank originates and
issues the loan to the
borrower (net of
origination fee). Eligibility
for a loan is not
guaranteed and requires
that a sufficient number of
investors commit to fund a
loan.
After the loan is issued, LC

uses the proceeds from
investors to purchase the
loan. LC receives a
transaction fee from
WebBank.
LC manages and services

loans from borrowers,
remitting principal and
interest payments (net of
management + servicing
fees) to investors.
Delinquent borrowers are
subserviced out to debt
collection agencies.
Sources: Company Data (Lending Club), Piper Jaffray
Exhibit 9
EXAMPLE OF A TYPICAL PROSPER MARKETPLACE TRANSACTION

Step 1
Borrower Creates
Loan Listing
Step 2
Platform Performs
Credit Check
Step 3
Loan Listing Published
& Verification Check
Step 4
Investors Commit
Funds to Loan
Step 5
Borrower's Loan
Is Funded
Step 6
Prosper Manages &
Services The Loan
Borrower creates a loan

listing on Prosper and
fills out personal
information to determine
credit eligibility.
Platform's underwriting
process verifies the
borrower's identity,
history and credit
(Experian, credit reports,
data & analytics from
application process). If
approved, a unique
Prosper Rating credit
grade and interest rate
are assigned to borrower.
Borrower publishes
customoized loan listing
(including a title and
description of loan
purpose/financial
situation) to attract
investors to fund request.
During this period, Prosper
is also performing
additional verification
checks on the borrower.
The higher the verification
stage of a borrower, the
more attractive they are to
investors.
Investors have 14 days to

commit to funding a loan,
or else the loan request
expires and no funds are
issued. Eligibility for a
loan is not guaranteed and
requires that a sufficient
number of investors
commit to fund a loan.
Once a loan is fully funded

by investors, partner
WebBank originates and
issues the loan to the
borrower within a few
days (net of origination
fee). After the loan is
issued, Prosper uses the
proceeds from investors to
purchase the loan. Prosper
receives payments from
WebBank as compensation
for its loan origination
activites it undertakes on
WebBank's behalf.
Prosper manages and

services loans from
borrowers, remitting
principal and interest
payments (net of servicing
fees) to investors.
Delinquent borrowers are
subserviced out to debt
collection agencies.
Source: Company Data (Prosper), Piper Jaffray
August 2015
Marketplace Lending
Economics
Marketplace lenders typically generate revenue from collecting origination and servicing
fees for loans originated through their platform. Generally, the origination fee is paid by the
borrower and the servicing fee is paid by the investors. To illustrate how a marketplace
lender makes money, refer to the following example using Lending Club fees:
Exhibit 10
MARKETPLACE LENDING REVENUE DRIVERS

Lending Club Example
Revenue
Source
Paid By
Fees
Origination Fee
Servicing Fee
Borrowers
Investors
1-5% of Loan Amount,

depending on Loan
Grade assigned to
borrower
1% of monthly P&I
Delinquent Loans:
No Litigation
Required: 18%
collection fee of
amount recovered
from delinquent
borrowers 16+ days
Litigation Required:
30% collection fee
of hourly attorneys
fees plus costs, up
to the amount
collected
Exhibit 11
EXAMPLE OF MARKETPLACE LENDING ECONOMICS
Origination Revenue
Loan Amount
Origination Fee
Origination Revenue
$10,000
4%
$400
Net Loan Amount
$9,600
Servicing Revenue
Interest Rate (APR)
Monthly P&I (36 mo. Loan)
Servicing Fee
Servicing Revenue / Month
9.97%
$309.63
1%
$3.10
August 2015
Competitive Barriers
As lending marketplaces grow, their competitive barriers grow due to positive network
effects. We believe the key competitive barriers are built upon:
1)
2)
3)
4)
5)
attractive interest rates and liquidity,

robust underwriting data history (lower risk premium for lenders and rates for
borrowers),
lender/investor diversification,
loan product diversification, and
servicing capabilities.
Marketplace lenders operate their platforms online, saving them from the costly fixed
infrastructure of traditional lenders and enabling those savings to be passed onto consumers
in the form of lower interest rates. The lower interest rates attract more borrowers, which
increases the appeal of the marketplace to investors supplying capital, and that, in turn,
increases the appeal of the marketplace to borrowers. Hence, a growing lending
marketplace creates larger competitive barriers and provides greater marketplace value to
borrowers and lenders via attractive interest rates and liquidity. The larger marketplaces
also have more robust data history on repeat borrowers, which should enable better
underwriting and a lower risk premium to investors.
Exhibit 12
SELECT MARKETPLACE PLATFORM ORIGINATION VOLUMES
Source: Company Filings, Piper Jaffray
Less Of A Disruption
To Lending, More Of
An Expansion
Currently, we view the marketplace lenders less as disruptors to traditional lending

institutions and more as expanders of credit to consumers and small businesses. Many
small banks have partnered with marketplace lenders in order to efficiently access
consumers/businesses and expand their loan product offerings. The majority of
marketplace lending has been for consumer unsecured installment loan products, typically
used to refinance high-cost credit card debt. Therefore, marketplace lenders have enabled
another source of capital/loan products, in addition to home equity loans and direct
personal loans, for credit card refinance and other debt consolidation purposes. We also see
significant opportunity for marketplace lending in education loans, medical loans and small
business lending, as we believe marketplace lending can enable lower interest rates for
consumers in those product categories.
August 2015
Exhibit 13
S A M P L E OSample
F I NInterest
T E R ERate
S T Ranges
R A T EFor
S Personal
& F E ELoans
S FO
M A RMarketplace
K E T P L ALenders
CE LENDERS
At R
Selected
APR
Loan
Grade
Interest Rate
Origination
Fee
36-Mo.
60-Mo.
Highest
Lowest
A
G
5.32 - 7.96%
26.77% - 28.99%
1% - 4%
5%
5.99% - 9.97%
30.71% - 32.99%
7.02% - 9.63%
29.42% - 31.70%
Highest
Lowest
AA
HR
6.00% - 7.36%
27.75% - 31.90%
1% - 2%
5%
6.68% - 8.73%
31.72% - 35.97%
8.65% - 8.65%
n/a
None
None
5.50% 7.99%
4.04% 6.79%
6.615% 9.00%
4.79% 7.165%
Company
LendingClub
Loan
Amount
$1k - $35k
Prosper
$2k - $35k
Social Finance
$5k - $100k
Fixed
Variable
Bankrate Standard Credit Card Fixed APR - 13.23%

Federal Reserve Average Credit Card APR - 11.98%
Note: Loan grade (credit worthiness) is calculated and defined differently by the various lending platforms. For the purpose of
this analysis, we collected rates for the highest and lowest credit grades.
Sources: Company Websites, Piper Jaffray
Institutional Capital
Has Helped To
Accelerate/Diversify
Marketplace Lending
Growth
Institutional investors such as hedge funds, asset managers, pensions, insurance companies
and banks continue to grow as a percentage of marketplace funding mix vs. retail investors.
Institutional capital inflows into marketplace platforms have been aided by attractive yields
in a low interest rate environment. The inflow of institutional capital has accelerated the
pace of industry origination growth and diversified the investor base. From the eyes of a
borrower seeking a loan, this distinction has not impacted the overall lending process but
has increased the supply of funding available to borrowers.
Attracting Borrowers
And Investors To
Marketplace Lending
Platforms
Many marketplace lenders market to borrowers via online channels, mail drives,
partnerships and word of mouth to build brand awareness and reputation. On the investor
side, marketplace lenders market to retail investors, build relationships with the
institutional investor community, and have formed partnerships with banks. For instance,
Lending Clubs bank partnerships offer referrals between the two parties depending on the
size and type of loan product while also giving access to each others customer lists.
Depending on the product niche of the marketplace, advertising with respective industry
websites also helps drive inbound traffic by association.
Big Data & Tech

Meet Risk
Assessment
Contributing to the growth of marketplace lending has been the prevalence of internet
technologies, increasing regulations on traditional financial institutions, and innovation by
marketplace lenders. Many marketplace lenders apply their own metrics and algorithms
combined with traditional consumer data from the credit bureaus and additional borrower
data sources. For instance, employment data can be leveraged thanks to partnerships with
payroll processors. Also, behavioral data can be used such as how long and how an
applicant fills out an application.
While most marketplace credit underwriting has not yet been subject to the test of a credit
cycle, we believe that over time those platforms with sophisticated and differentiated
underwriting technology will prevail. A strong underwriting track record will contribute to
a platforms reputation and bolster the confidence necessary for investors to continue to
lend through a platform even in the midst of a credit cycle.
August 2015
U.S. Unsecured
Consumer
Marketplace Lending
Market Size
Unsecured Consumer Loans Market size and growth outlook in the U.S. According to
data from the Federal Reserve, there was $890B of U.S. revolving consumer credit
outstanding as of the 1Q15. We believe that the total addressable market for these types of
unsecured consumer loans is smaller, however, given the amount of transactors and low
outstanding balances on some credit card products. Lending Club and Prosper have
dominated the U.S. market for unsecured consumer credit marketplace lending, each
originating ~$4.4B and $1.4B loans in 2014, respectively. We estimate approximately ~$6B
consumer unsecured marketplace loans were originated in 2014, assuming a combination of
origination data available from LC and Prosper as well as our own estimates. Lending Club
has noted in its corporate presentations that its unsecured consumer loan addressable
market is $380B after excluding consumers that are unlikely to refinance their credit card
debt because they continue to transact with their cards or carry a small balance. We assume
the $380B TAM is reasonable as you filter out transactors (individuals who pay off all of
their credit card balances monthly), credit card outstanding balances that are too small to
refinance (under $1,000), and borrowers that are not looking to refinance and want to
continue using a credit product.
Exhibit 14
UNSECURED CONSUMER MARKETPLACE LOAN MARKET SIZE
Sources: Federal Reserve, Company Data, Piper Jaffray
Growth Forecast
We estimate that marketplace lenders originated ~$6B (approximately 1% penetration of

total U.S. revolving credit outstanding) in unsecured consumer loans in 2014. We assume
that U.S. revolving credit outstanding as a percentage of U.S. nominal GDP continues to
grow in line with GDP and that consumer marketplace lendings addressable market grows
at a 64% CAGR from 2014 to 2017. We forecast consumer unsecured marketplace lending
to grow to ~$27B in annual originations by 2017. The $27B estimate of consumer unsecured
marketplace originations by 2017 represents a ~2.7% penetration rate of total consumer
loans, or a fraction of overall originations.
August 2015
Exhibit 15
UNSECURED CONSUMER MARKETPLACE LOAN GROWTH FORECAST
Sources: Federal Reserve, Bureau of Economic Analysis, Company Data, Bloomberg, Piper Jaffray
Other consumer marketplace lending opportunities. As marketplace lending platforms

evolve, they have expanded into other product categories such as medical loans, student
loans, auto loans and home equity loans. Online lending platforms like Social Finance
(SoFi) and CommonBond have targeted student loan origination and refinancing, betting
on a students future earning potential based on high pedigree educations. Lending Club is
also pursuing other products such as auto and medical loans. Each product category
presents its own unique set of opportunities and challenges for the marketplace lending
model. We believe there is significant growth opportunity in loan categories where
marketplace lenders can more efficiently access borrowers and enable lower interest rates
than offered by traditional lending institutions. Below we highlight various types of
consumer loan products outstanding according to the New York Federal Reserve to give us
a sample of the overall market opportunities:
Exhibit 16
U.S. CONSUMER LOANS OUTSTANDING

($ Bil)
Sources: New York Federal Reserve, Piper Jaffray
August 2015
U.S. Small Business

Marketplace Lending
Market Size
Small business loans - market size and growth outlook in the U.S. The marketplace lending
model has proven successful in small business lending, as platforms like publically traded
OnDeck Capital (ONDK, not covered) target small business loans. The small-to-medium
size business (SMB) loan market is very fragmented making it challenging for growing
businesses to secure financing. Oftentimes traditional banks only lend to larger, more
established businesses leaving a market opportunity for riskier but growing SMBs.
Marketplace and online lending platforms for small businesses are more fragmented than
consumer platforms, though OnDeck, CAN Capital and Kabbage have made significant
strides in the U.S., and players like Prosper and Lending Club participate in both markets.
We estimate approximately ~$4B small business marketplace loans were originated in 2014,
assuming a combination of origination data available from ONDK and our own estimates.
According to the Federal Deposit Insurance Corporation, total small business commercial
and industrial (C&I) loans outstanding under $1M were ~$306B in 1Q15. The size of the
SMB loans offered by different online marketplace lenders varies by their investment style,
risk profile and investor base. Online SMB lender Prosper will lend a company up to $35k,
while other online platforms like Dealstruck and U.K. based Funding Circle will lend up to
$250k and $500k, respectively.
Exhibit 17
SMALL BUSINESS LOANS OUTSTANDING <$1M AS OF 1Q15
Sources: Federal Deposit Insurance Corporation, Piper Jaffray
We believe the opportunity for marketplace SMB lenders lies primarily in the sub $250,000
loan range with some penetration in the $250k-$1M market. We believe SMBs requiring
funds in excess of $250k are likely more established, less risky businesses that have begun to
foster community banking relationships and as such would not be as attracted to online
funding. Therefore, we make certain assumptions to arrive at our SMB lending TAM:
1.
2.
3.
15% of the $250k-$1M - $19B ($124B*15%)

75% of the $100k-$250k - $37B ($49.8B*75%)
100% of the <$100k - $132B
In addition, management consultancy Oliver Wyman estimates that there is a potential $80120B in unmet demand for SMB lines of credit. If we take the midpoint of that estimated
range, we arrive at a marketplace SMB loan total addressable market of approximately
~$290B.
August 2015
Exhibit 18
SMALL BUSINESS MARKETPLACE LENDING MARKET SIZE
Sources: Company Filings, Federal Deposit Insurance Corporation, Piper Jaffray
Growth Forecast
We estimate that marketplace and online lenders originated ~$4B (approximately 1.3%
penetration of total market) in small business loans in 2014. We assume that U.S. small
business loans outstanding as a percentage of U.S. nominal GDP continues to grow in line
with GDP and that small business marketplace lendings addressable market grows at an
84% CAGR from 2014 to 2017. We forecast small business lending through marketplaces to
grow to ~$25B in annual originations by 2017, with a mix of new share being created and
partially from share gains over traditional bank incumbents market share. The $25B
estimate of small business marketplace originations by 2017 represents a ~7.5% penetration
rate of total small business loan originations.
Exhibit 19
SMALL BUSINESS MARKETPLACE LENDING GROWTH FORECAST
Sources: Federal Deposit Insurance Corporation, Bureau of Economic Analysis, Company Data, Bloomberg, Piper Jaffray
August 2015
Other small business and entrepreneurial lending opportunities. Following the peer-to-peer
and marketplace lending blueprint, new entrants have targeted entrepreneurs and startups
in increasingly niched fields like real estate. Real estate focused platforms generally do not
maintain balance sheet risk, but create a marketplace for individuals and institutions to
invest in products such as loans to house flippers and smaller commercial real estate
developers often secured by the property they are investing in. Platforms such as
RealtyMogul, Patch of Land, AssetAvenue, Money360 and LendingHome all leverage data
(including local real estate data) similar to other marketplace lenders and enable lenders to
invest in real estate across the nation, not just in their local market. This type of
marketplace lending presents a whole new set of unique opportunities and challenges as
real estate can be heavily local with no two properties sharing the same characteristics and
the fear of the next downturn in cyclical real estate markets clouding investor sentiment.
We highlight that U.S. commercial real estate debt totaled $2.4 trillion in 1Q15 according to
the Federal Reserve, giving us a flavor for the size of the overall market for commercial real
estate marketplace lending. It is important to note that these types of real estate loans
represent a subset of that total and are generally unattractive to banks creating an
opportunity for real estate focused marketplaces to facilitate these loans, in our view.
Marketplace Lending
Has Taken Off
Internationally As
Well
Online marketplace lenders have also enjoyed significant growth overseas in markets like
Europe (especially the U.K.), China and Australia. Below we highlight some key insights
from some of those international markets:
United Kingdom. The U.K. for example has received considerable support from regulators
helping to grow its online lending geography, particularly with small businesses. In this
spirit, the U.K. has established a rule that requires banks to refer rejected small business
loan applicants to alternative providers of credit like London-based Funding Circle.
Government in the U.K. has largely been supportive of marketplace lenders, writing
regulations specifically designed for peer-to-peer lending such as rules making it easier for
consumers to invest their retirement savings in marketplace loans. The mix of capital
sources also differs slightly in the U.K. as retail investors remain the primary source of
capital versus accredited and institutional investors in U.S. based online lending platforms.
Zopa and RateSetter, both U.K. based online lenders, offer marketplace investment
products that maintain reserves that are used to compensate investments in loans that go
bad, creating a loan product for retail investors similar to a savings account (albeit at lower
yields than most U.S. based online marketplace lenders).
China. Chinese online lending platforms have also enjoyed significant growth recently as
Chinese small businesses have a difficult time accessing credit from state banking
institutions. According to Wangdaizhijia.com, a Chinese online marketplace lending portal,
the number of online lending platforms in China has grown significantly from ~50 in 2011
to ~1,575 in 2014. The size of the Chinese population and market represents significant
opportunity for online lending; however, market fragmentation could hinder growth until
consolidation occurs and market leaders emerge. Despite significant growth in Chinese
markets, many marketplace lenders have reportedly gone bankrupt due to
inaccurate/unreliable data, fraud, excessive defaults and other problems creating the need
for additional underwriting measures to be taken such as sending employees to inspect
physical assets. Borrower data integrity remains a key concern for Chinese marketplace
lending players, sometimes forcing the need to physically inspect assets. Despite the
impressive growth of marketplace lenders in China, financial regulators have largely
remained on the sidelines as marketplace loans outstanding (according to Wangdaizhijia
there were 103.6B yuan marketplace loans outstanding as of 4Q14) represent a fraction of
the estimated 90 trillion yuan outstanding in the Chinese banking system.
August 2015
We expect these markets to continue to grow as marketplace lending platforms become

more recognizable amongst consumers and small businesses.
Responses Of
Traditional Lending
Institutions
Challenges & Risks

For Marketplace
Lenders
Overall, we believe traditional banks have responded in a number of key ways:

1.
Invest in next-generation technology infrastructure: Banks continue to invest

heavily in their online banking and mobile app platforms as consumers continue
to migrate towards those banking channels. JP Morgan CEO Jamie Dimon
recently noted that Silicon Valley is coming after traditional banks and that banks
must continue to invest in next-generation technology. The technology
investments will help accelerate credit decisions, fund loans faster, create better
data & analytics and reduce operating costs.
2.
Partner with marketplace lending platforms: Many incumbents including regional

and larger banks have partnered with marketplace lenders in order to more
efficiently access borrowers for certain loan products. For example, Citi and
Lending Club announced a partnership in early 2015 whereby Citi will facilitate
up to $150M in loans through LC designed to provide more affordable credit to
underserved borrowers and communities.
3.
Build/buy their own online lending platforms: Banks and other lenders may also
respond by developing their own online lending platforms. A bank that develops
their own online lending platform could benefit even more in a rising interest rate
environment if the lender holds the loan assets on their balance sheet, leading to
higher revenues and profits. We believe reports of Goldman Sachs interest in a
marketplace lending platform helps to validate the existing market and the
opportunity it presents
Marketplace lending platforms remain unproven in their ability to comply with new and
ongoing legislative and regulatory requirements. Furthermore, the recent state of credit
availability has helped marketplace lending platforms grow, however uncertainty remains
around how these models will be tested when economic conditions turn. Key questions to
consider include:
How will marketplace lending underwriting standards hold up during an

economic downturn?
o How much will default rates rise in a recession?
o Will investors still find marketplace platform yields attractive as default
rates rise; or will capital flee?
How will marketplace platforms react to rising interest rates?
o How much will it cost to acquire new customers in a less attractive rate
environment?
o Will the spread between traditional credit card rates and marketplace
rates narrow?
How competitively priced do marketplace rates need to be compared to large
banks to continue attracting borrowers and lenders?
How and/or when will regulators scrutinize marketplace lenders?
August 2015
Regulatory
The U.S. regulatory environment for marketplace lending has largely been undefined. We
believe a major concern for investors is the uncertainty surrounding how federal and state
regulatory agencies will ultimately interact with online lending marketplaces. Traditional
lending by bank and non-bank institutions has historically been highly regulated. Other
than the U.S. Treasury Departments Request for Information (RFI) in July 2015,
regulators/policymakers have largely not been involved in the marketplace lending space
giving them a competitive advantage due to their lower operating and compliance costs. If
strict rules were to be imposed (such as those placed on banks) it is difficult to estimate the
economic impact of higher compliance costs on the marketplace business model.
U.S. Treasury RFI. The U.S. Treasury Department recently published a Request
for Information (RFI) asking the public to comment on marketplace lending and
its role in expanding access to credit for consumers and small businesses. The RFI
acknowledges that marketplace lending is still a small component of the total
consumer and small business lending market, though it is a rapidly growing sector
that is shifting the way some consumers and small businesses seek credit. The RFI
states that the Treasury Department would like to advance their dialogue with the
public and key stakeholders in the industry to better understand the industry. The
RFI cites a handful of key questions, including the potential for platforms to
expand access to credit to historically underserved market segments, whether
marketplace lenders should have skin in the game, and how the financial
regulatory framework should evolve to support the safe growth of the industry.
While no new rules or regulations have been established, we believe this sort of
dialogue is important between stakeholders to promote ongoing future
cooperation and may signal where policymakers are headed.
Legal
Madden v. Midland Funding U.S. judicial case a risk factor to marketplace lenders. The
case of Madden v. Midland Funding presents a risk factor to marketplace lending platforms
in regards to state usury laws, the Fair Debt Collection Practices Act (FDCPA) and the
National Bank Act (NBA). In May 2015, the U.S. Court of Appeals for the Second Circuit
issued its decision in Madden v. Midland Funding that interpreted the scope of federal
preemption under the National Bank Act and held that a non-bank assignee of a loan
originated by a national bank, based on the facts of that case in which the national bank no
longer had any interest in the loan, was not entitled to the benefits of federal preemption of
claims of usury. The Court's decision is binding on federal courts located in Connecticut,
New York and Vermont, but the decision could also be adopted by other courts. In August,
the Second Circuit rejected a request for a rehearing of the Madden v. Midland case. The
case is being considered for appeal to the U.S. Supreme Court.
Operational
Servicing Different Product Loans and the potential challenges for marketplace lenders.
Different types of loans require different levels of servicing involvement. For example,
servicing a mortgage loan is different than servicing an auto or medical loan. Many
marketplace lenders currently debit a borrowers bank account directly via an ACH transfer
and withdraw funds periodically to pay down loan balances. While this has worked well for
consumer unsecured loans of relatively low dollar values, this model has not yet been tested
with larger balance loans or during an economic downturn where bank account
withdrawals may not fare as well. As marketplace lenders increase their loan product types,
their loan servicing may become more challenging and involved as they cannot apply a onesize-fits-all approach. Delinquent loan payments in a challenging credit environment may
further complicate marketplace lenders as servicing delinquent borrowers requires a lot of
August 2015
man hours and typically requires a dial-for-dollars approach resulting in increased

operating costs which could potentially squeeze margins.
Servicing loans also opens up another avenue for regulatory agencies to get involved given
the interaction of marketplace lenders with consumers may become more and more like a
collections agency interactions with delinquent consumers.
August 2015
C O M P A NY O V E R V I E W S
AssetAvenue
Founded: January 1, 2013

Type: Real Estate
Ownership: NetEase Capital, DCM Ventures, BAM Ventures, Vectr Ventures, Matrix
partners
Headquarters: Los Angeles, CA
Domain: https://www.assetavenue.com/
Company Description: AssetAvenue is an online peer-to-peer lending platform dedicated to
the commercial real estate industry. It permits accredited investors and certain other
persons to independently connect with issuers of securities relating to real estate
investments. The platform allows investors to invest in real estate loans secured by real
properties such as multi-family, retail, office, industrial, hospitality and single family
properties. It also provides access to senior secured loans, monthly cash flows, short-term
maturities, low investment minimums, direct deposits, and institutional investor programs.
Accredited investors can invest as little as $5,000 all the way up to $25M per loan.
Co-Founder, Position: David Manshoory, CEO
Source: https://www.crunchbase.com/organization/assetavenue
https://www.assetavenue.com/faq
Auxmoney

Type: Consumer
Ownership: Sequoia Capital, General Atlantic, Atomico, Institutional Venture Partners
Headquarters: Dsseldorf, Germany
Domain: www.auxmoney.com
Company Description: Auxmoney is a German-based online peer-to-peer loan marketplace
where private consumers can borrow up to 20,000 directly from private investors.
Auxmoney assesses the risk of borrowers by using its own proprietary data algorithms
which layer multiple data sources, including traditional banking metrics such as credit
history, on top of other behavioral signals such as how potential borrowers behave on its
website and elsewhere online. Auxmoney focuses on higher-quality (less risky) borrowers
and categorizes them into five groups with different interest rates applied to each depending
on where the borrower falls on the spectrum. Auxmoney has focused its efforts in Germany
building up its user base, but eyes expansion outside of its home turf into the rest of
Europe.
Co-Founder, Position: Raffael Johnen, CEO
Co-Founder: Philipp Kriependorf
Source: https://www.crunchbase.com/organization/auxmoney
http://techcrunch.com/2014/05/13/auxmoney-series-b/
August 2015
Avant
Founded: November 1, 2012

Type: Consumer
Ownership: Tiger Global Management, Jefferies Group, QED Energy, Victory Park
Capital, Peter Thiel, RRE Ventures, August Capital, DFJ Growth, KKR
Headquarters: Chicago, IL
Domain: https://www.avant.com/
Company Description: Avant (formerly known as Avant Credit) offers online personal
loans to near-prime customers across the United States at lowest possible interest rates. In
May 2015, Avant announced that its online lending marketplace had hit $1B in loan
originations. Utilizing advanced algorithms and machine-learning capabilities, the company
offers a unique and highly customized approach to the personal loan process. The
combination of technology, analytics and customer service capabilities allows the company
to offer an easy-to-use online process for loans to borrowers, all entirely online. Avant
offers loans between $1,000 and $20,000, with loan approval decisions being made in
seconds or minutes for a majority of applicants. While Avant is currently focused on the
United States market, the company intends to further expand its reach internationally in the
future.
Co-Founder, CEO: Al Goldstein
Co-Founder, CCO: John Sun
Co-Founder, CTO: Paul Zhang
Source:
https://www.avant.com/
http://www.forbes.com/companies/avant-credit-corporation/
http://www.reuters.com/article/2015/03/31/avant-expandsplatformidUSnPn81HMsZ+8d+PRN20150331
http://techcrunch.com/2015/03/31/online-lender-avant-acquires-debt-management-servicereadyforzero/
August 2015
BetterFinance

Type: Consumer and Small Business
Ownership: PayPal, SV Angel, First Round, Investor Growth Capital, Softtech VC, Baseline
Ventures, Venrock, Bronze Investments
Headquarters: San Francisco, CA
Domain: http://www.betterfinance.me/
Company Description: BetterFinance (formerly BillFloat) is a financial technology company
providing innovative leasing and credit solutions to consumers and small businesses online,
in-store and via mobile. BetterFinance offers two main products: 1) SmartPay for
consumers and 2) SmartBiz for small business. SmartPay, for consumers, is a lease-to-own
payment plan to finance smartphones, accessories and other high-value items with
payments spread over an extended term to make them more affordable. SmartPay works
with leading wireless carriers to offer lease-to-pay financing for their products and
consumers can apply through an online or mobile application to get an instant decision.
SmartBiz is an online marketplace for SBA loans $350k and under, enabling banks to make
loans efficiently and small businesses to apply to get funds quickly. SmartBiz has a quick
and easy online application (~20 minute application, funding in as little as 7 days) for lowinterest rate (6-8%), long-term SBA-guaranteed loans between $5k-$350k.
Co-Founder, CEO: Ryan Gilbert
Co-Founder, President: Sean OMalley
Source:
https://www.crunchbase.com/organization/betterfinance
http://www.betterfinance.me/
Biz2Credit

Type: Small Business
Ownership: Private
Headquarters: New York, NY
Domain: https://www.biz2credit.com/
Company Description: Biz2Credit is a hub connecting small business owners with lenders
and service providers, seeking solutions based on their online profiles. Biz2Credit empowers
small business owners, lenders and service providers to effectively compete with big
companies, enhance their services and products, and grow their enterprises. Biz2Credit
matches small businesses with credit solutions based on online profiles that can be
completed in less than five minutes in a safe, efficient, price-transparent environment. The
Biz2Credit network consists of ~50,000 users, ~300 lenders, credit rating agencies such as
Equifax, brokers including BizBuySell and major small business service providers such as
HP. Biz2Credit has funded over $1.2B small business loans since inception and offers
funding to borrowers in as little as 24 hours.
Co-Founder, CEO: Rohit Arora
Co-Founder, President: Ramit Arora
Source:
https://www.crunchbase.com/organization/biz2credit
http://www.biz2credit.com/about
August 2015
Bond Street
Founded: October 29, 2013

Ownership: Jefferies Group, Spark Capital, Nathan Blecharczyk, Slow Ventures,
Homebrew, Eagle Cliff Partners
Domain: https://www.onbondstreet.com
Company Description: Bond Street offers small business lending differentiated through
technology, data and design. The company offers one to three year term loans from $50k $500k at rates as low as 6% to small businesses in the United States. The companys online
platform calls for small businesses to have more than two years of operating history,
generating more than $250k in annual revenue and management who is able to assign a
personal guarantee. Bond Street loan applications are approved within 48 hours and small
businesses can expect to receive funds within one week of approval. Loans are funded by
Bond Streets community of accredited investors and institutions.
Co-Founder, CEO: David Haber
Co-Founder, CTO: Peyton Sherwood
Source:
https://www.crunchbase.com/organization/bondstreet
https://onbondstreet.com/howitworks.html
C2FO
Founded: February 1, 2008

Ownership: Union Square Ventures, Iron Mountain, OPENAIR Equity Partners,
Summerhill Venture Partners, VFormation, Mithril Capital Management
Headquarters: Fairway, KS
Domain: http://www.c2fo.com
Company Description: C2FO is self-described as the worlds first market for working
capital and risk-free profit. In its simplest form, C2FO has created a working capital credit
marketplace enabling businesses and investors to optimize their working capital positions
in a live, bid/ask environment. The company has built a platform that connects and creates
a seamless match between accounts receivable (A/R) and accounts payable (A/P), enabling
efficiency in the riskless provisioning of working capital between suppliers and buyers.
C2FO enables suppliers to take control of their cash flow while buyers can increase
EBITDA and gross margin and earn a better return on short-term cash while improving the
financial health of their supply chains. Since their first transaction in May 2010, C2FOs
platform has enabled collaborative wins between buyers and suppliers, delivering more
than $13B in working capital and 80M days of accelerated payment across the globe.
Chairman, CEO: Alexander Kemper
CFO: John Kill
Source:
https://www.crunchbase.com/organization/c2fo
https://c2fo.com/why-c2fo/opportunity
August 2015
Can Capital

Ownership: Wells Fargo Capital, Ribbit Capital, Meritech Capital partners, Accel Partners,
QED Investors
Domain: https://www.cancapital.com
Company Description: CAN Capital provides capital to small and medium-sized businesses
using its own real-time platform and risk-scoring models. CAN Capitals Daily Remittance
Platform allows lenders to access the daily cash flows of borrowers, and collect daily
remittances from them. The platform gives lenders a window into their customers daily
business, and relies on payment processors to split the settlement of card transactions
between the small business and its bank. CAN Capital offers loans to small business
periods between 4 to 24 months in amounts ranging from $2,500 to $150,000. Small
businesses can fill out an online lending application and if approved can have funds wired
in as little as 2 business days. Approval is based on a business strength and no personal
collateral is needed.
CEO: Dan DeMeo
CFO: Aman Verjee
Source:
https://www.crunchbase.com/organization/cancapital
https://www.cancapital.com/business-loans
China Rapid Finance

Type: Consumer
Ownership: Private
Headquarters: Shanghai, China
Domain: www.chinarapidfinance.com
Company Description: China Rapid Finance is a Chinese online consumer lending
marketplace serving online users and Chinas emerging middle class. China Rapid Finance
is a recognized technology innovator and has transformed Chinas consumer credit
landscape with its introduction of the most advanced omni-channel borrower acquisition
system and proprietary Big Data analytics technology platform featuring an end-to-end
automated credit decisioning system. It has a proven track record in credit risk
management, transparency and a culture focused on innovation with more than 5,000
employees and 80 data verification centers across China.
Co-Founder, CEO: Zane Wang
CFO: Kerry Shen
Source:
https://www.crunchbase.com/organization/china-risk-finance
www.chinarapidfinance.com
August 2015
CircleBack Lending

Type: Consumer
Ownership: Private
Headquarters: Boca Raton, FL
Domain: http://www.circlebacklending.com/
Company Description: CircleBack Lending is an Internet-based consumer lending platform
with a two-part mission. First, it aims to provide prime and super-prime consumers in the
United States a fast and efficient way to borrow money at attractive interest rates. Second,
it offers institutional and high-net-worth individual investors a robust, transparent
platform to invest in these consumer loans. CircleBack Lending offers personal loans
between 36 and 60 month terms in amounts ranging from $3,001 to $35,000. CircleBack
grades its borrowers based on their FICO score, credit report data and other third party
attributes to determine eligibility on their platform to post a loan request. CircleBack
institutional investors can review and commit to borrower loan requests based on their
customer and risk profile.
Co-Founder, CEO: Michael Solomon
CFO: James Gormley
Source:
https://www.crunchbase.com/organization/circlebacklending
https://www.circlebacklending.com/about.php
CommonBond

Type: Consumer
Ownership: Tribeca Venture Partners, Tom Glocer, The Social+Capital Partnership,
Vikram Pandit
Domain: https://www.commonbond.co/
Company Description: CommonBond is an online lending platform that connects
borrowers and institutional investors to make education finance better. CommonBond
offers both prospective and graduate students the opportunity to take out a student loan or
refinance an existing student loan. CommonBond will allow borrowers to take out a loan
based on their schools published cost of attendance less any scholarships and funds are
disbursed directly to the borrowers university. To date, CommonBond has funded or
refinanced over $100M of student loans. CommonBond partners with ECMC Servicing to
service its loans. CommonBond also has its Social Promise, stating that for every degree
fully funded on the platform that CommonBond will fund the education of a student in
need abroad for a full year.
Co-Founder, CEO: David Klein
Co-Founder, CFO: Michael Taormina
Source:
https://www.crunchbase.com/organization/commonbond
https://commonbond.co/how-it-works
August 2015
Credibly

Ownership: Private
Headquarters: Troy, MI
Domain: https://www.credibly.com/
Company Description: Credibly is a new FinTech company that offers cash advance and
business loans to small businesses. They offer a wide range of credit, including merchant
cash advances, unsecured business loans, business credit cards, inventory loans and SBA
loans among others. Crediblys innovative technology platform, which looks at a businesss
total health rather than just credit score and collateral, has access to $150M in funding and
can provide any amount over $5k in just one day.
CEO: Glenn Goldman
COO: Edan King
Source:
https://www.credibly.com/small-business-financing-advantages/
https://www.credibly.com/about-credibly/
Daric

Ownership: Private
Headquarters: Redwood City, CA
Domain: https://www.daric.com/
Company Description: Daric is a peer to peer lending platform that extends personal and
small business loans at competitive rates using big data. Daric represents the next
generation of online lending, tackling difficult problems in software engineering, machine
learning, and big data to understand credit risk. Daric connects borrowers and investors
through technology, and manages the underwriting process with powerful software
algorithms. Savings are passed directly to participants, decreasing the rates borrowers pay
while maximizing what lenders can earn. Daric helps leading institutional lenders and
banks solve some of their hardest problems by licensing their technology to provide a
variety of data and lending solutions while ensuring compliance with state and federal
regulations. Darics technology enhances decision-making and process flow for loan
officers, underwriters, and servicers, enabling the distribution of capital in a transparent
and efficient manner. For consumers, Daric offers unsecured, fixed-term (36 and 60
months), fixed-rate loans ranging from $1,000 to $35,000 for a first loan on the platform.
For small businesses, Daric offers unsecured, fixed-term (36 and 60 months), fixed-rate
loans ranging from $1,000 to $50,000 for a first loan on the platform.
CEO: Greg Ryan
CTO: Vasant Ramachandran
Source:
http://daric.com/
https://www.crunchbase.com/organization/daric
August 2015
Dealstruck
Founded: June 4, 2013

Ownership: PetersonVentures, Blackbird Ventures
Headquarters: Carlsbad, CA
Domain: https://www.dealstruck.com/
Company Description: The Dealstruck lending marketplace connects profitable, small- and
medium-sized businesses with individual and institutional accredited investors. Unlike the
one-size-fits-all approach offered to SMBs by banks and the high-cost, short-term credit
offered to them by alternative lenders, Dealstruck provides more patient growth capital
that allows businesses time to plan and execute for maximum success. Dealstrucks
platform performs thorough credit screening on business borrowers and allows investors
the freedom to choose specific investments so they can build a customized portfolio that
meets their own preferences on risk, return, industry and size.
Co-Founder, CEO: Ethan Senturia
CFO: Jim Burke
Source:
https://www.crunchbase.com/organization/dealstruck
DriverUp

Type: Consumer
Ownership: RRE Ventures, Emerald Development Managers
Headquarters: Austin, TX
Domain: https://www.driverup.com/
Company Description: DriverUp is an online marketplace built exclusively for automotive
financing. DriverUp is powered by Sierra Auto Finance, a nationally recognized specialty
auto finance company. DriverUp is the first platform that enables investors to easily and
directly participate in auto lending. This is an option that was previously not available for
as much as 99% of the investor community. DriverUp is fundamentally improving, for both
car dealers and car buyers, how auto loans are secured and serviced. DriverUp operates a
user-friendly technology platform, built on proprietary software and advanced data
analytics, focusing solely on the transaction and securitization of specialty auto loans.
DriverUp works with auto dealerships and accredited investors willing to invest a minimum
of $100,000 in automotive financing.
CEO: Sam Ellis
Source:
https://www.crunchbase.com/organization/driverup
https://www.driverup.com/about-us/
August 2015
Earnest

Type: Small business
Ownership: Andreessen Horowitz, Slow Ventures, First Round, Atlas Venture, Maveron,
Collaborative Fund
Domain: http://www.meetearnest.com/
Company Description: Earnest is a merit-based lender with a unique approach to personal
lending and credit. The company considers a number of factors during its rigorous
underwriting process, including not only an applicants credit history, but also their
financial history, educational background, and professional achievements. Earnest uses this
proprietary underwriting model to provide financially responsible people with loans at very
low interest rates. Earnest currently offers personal loans and student loan refinancing with
highly customizable repayment options.
Co-Founder, CEO: Louis Beryl
Co-Founder, COO: Benjamin Hutchinson
Source:
https://www.crunchbase.com/organization/earnest
https://www.meetearnest.com/how-it-works
Financeit

Ownership: Fidelity National information Services, TTV Capital, IA Capital Group,
FinSight Ventures, Second City Capital
Headquarters: Toronto, ON, Canada
Domain: https://www.financeit.io/
Company Description: Financeit works with small and medium-sized businesses and larger
enterprises to offer customers flexible payment plans for large purchases. By giving
customers additional payment options, Financeit helps businesses increase sales close rates
and transaction sizes. The Financeit platform provides merchants and borrowers with a
user-friendly experience based on fairness and transparency, no hidden fees or backdated
interest charges and lower interest rates than most credit cards. By working with multiple
lending partners, Financeit gets businesses instant credit results for their customers, and
better approval rates than other lenders. Since launching in 2011, Financeit has signed up
over 3,800 retail, vehicle, home improvement and healthcare businesses that have processed
more than $825M in loans in Canada the United States.
Co-Founder, CEO: Michael Garrity
Co-Founder, CTO: Paul Sehr
Source:
https://www.crunchbase.com/organization/financeit-canada
https://www.financeit.io/us/en/howitworks
August 2015
Fundera

Type: Small business
Ownership: Khosla Ventures, QED Investors, Lerer Hippeau Ventures, BoxGroup, First
Round, SV Angel, David Rosenblatt, Rob Wiesenthal, Strauss Zelnick
Domain: https://www.fundera.com/
Company Description: Fundera is an online marketplace that connects small business
owners with the best funding provider for their businesses. Fundera enables small
businesses to compare terms and rates for various types of lending products including
traditional term loans, equipment financing, invoice financing and lines of credit. Fundera
works with hand-picked, prescreened lenders to assemble the highest quality funding
sources for small business owners and ensures borrowers receive fair terms and rates on
each loan. Fundera enables borrowers to apply to over 25 lenders (companies like Fundbox,
Lending Club, Street Shares and CAN Capital) with one application. The company was cofounded in 2013 by GroupMe co-founder Jared Hecht, successful software entrepreneur
Rohan Deshpande and seasoned entrepreneur Andres Moran to bring transparency to the
lending process.
Co-Founder, CEO: Jared Hecht
Co-Founder, CTO: Rohan Deshpande
Source:
https://www.crunchbase.com/organization/fundera
Funding Circle
Founded: July 21, 2009

Type; Small business
Ownership: Accel Partners, BlackRock, Union Square Ventures, Index Ventures, Baillie
Gifford, Ribbit Capital, DST Global, Sands Capital Ventures, Temasek Holdings
Headquarters: London, UK
Domain: https://www.fundingcircle.com/
Company Description: Funding Circle is the worlds leading marketplace exclusively
focused on small businesses with more than $1B having been lent to 8,000 businesses in the
UK and USA. Today, 40,000 individuals, financial institutions and even the UK
Government are investing in small businesses through our marketplace. Funding Circle uses
cuttingedge technology to match accredited and institutional investors with American and
UK small businesses looking for finance to grow their businesses through the website.
Applications can take less than 10 minutes and Funding Circle assigns a loan specialist to
each account to assist in the loan and answer any questions. Funding Circle provides loans
to small businesses between $25k-$500k for 1 to 5 year terms.
Co-Founder, CEO (Global): Samir Desai
Co-Founder, U.S. Managing Director: Sam Hodges
Source:
https://www.crunchbase.com/organization/funding-circle
https://www.fundingcircle.com/us/about/
August 2015
Groundfloor

Type: Real Estate
Ownership: Private
Headquarters: Atlanta, GA
Domain: https://www.groundfloor.us/
Company Description: GROUNDFLOOR is the first microlending community for real
estate. Leveraging innovative applications of existing securities law, individual microlenders
combine to back independent commercial borrowers with direct short-term loans that pay
6-26% annually, with a minimum investment of $10. Based in Atlanta, the seed stage
company employs 10 people with expertise in residential real estate lending, securities law,
financial services and consumer internet. Its successful intrastate pilot rollout established a
community of over 3,000 lenders who funded 22 loans worth over $1M. Groundfloor uses
proprietary data analysis to grade its loans for investors and enables borrowers to get loans
as large as $250k.
Co-Founder, CEO: Brian Dally
Co-Founder: Nick Bhargava
Source:
https://www.crunchbase.com/organization/groundfloor-2
https://www.groundfloor.us/about
Jimubox
Founded: August 4, 2013

Ownership: Magic Stone Alternative, Shunwei Capital, Matric Partners China, Mandra
Capital, Ventech China, Xiaomi, Zhong Capital Fund, Vertex Venture Holdings
Headquarters: Beijing, China
Domain: http://www.jimubox.com
Company Description: Jimubox is a Chinese marketplace lending platform that facilitates
SME loans and individual consumption loans for Chinese Borrowers. As of April 2015,
Jimubox has 23k separate loan borrowers as well as ~$1B is new issue loans since launching
in 2013.
Co-Founder, CEO: Jun Dong
Co-Founder: Barry Freeman
Source:
https://www.crunchbase.com/organization/jimubox
https://www.techinasia.com/xiaomi-jimubox-funding-series-c/
August 2015
Kabbage

Ownership: Mohr Davidow Ventures, Thomvest Ventures, Lumia Capital, SoftBank
Capital, BlueRun Ventures, UPS Strategic Enterprise Fund, The TWC Group, David
Bonderman, SV Angel, Warren Technology Investment, Victory Park Capital
Domain: http://www.kabbage.com/
Company Description: Kabbage, Inc. is a technology and data company that has pioneered
a new automated way to lend money to small businesses and consumers. The company
simplified the manual application process that takes weeks to complete to one that is 100%
online and automated. Businesses and consumers can use their own data to submit an
application online and receive an immediate answer. Kabbage provides small business loans
from $2k to $100k.
Co-Founder, CEO: Rob Frohwein
CFO: Kevin Phillips
Source:
https://www.crunchbase.com/organization/kabbage
https://www.kabbage.com/how-it-works/
Kiva
Founded: March 1, 2005

Ownership: Private
Domain: http://www.kiva.org/
Company Description: Kiva is the world`s first person-to-person micro-lending website,
empowering individuals to lend to unique entrepreneurs around the globe. Kiva works with
microfinance institutions on five continents to provide loans to people without access to
traditional banking systems. One hundred percent of an investors loan is sent to these
microfinance institutions, which Kiva calls Field Partners, who administer the loans in the
field. Kiva lets individuals lend as little as $25 to help create opportunity around the world
and boasts a 98.71% repayment rate.
Co-Founder, CEO: Martin Tschopp
Co-Founder, President: Premal Shah
Source:
https://www.crunchbase.com/organization/kiva
http://www.kiva.org/about
August 2015
Lendico

Type: Consumer
Ownership: Private
Headquarters: Berlin, Germany
Domain: https://www.lendico.de/
Company Description: Lendico is a marketplace for peer-to-peer loans consisting of
borrowers seeking finance and lenders who are seeking returns. Without branches or bank
tellers involved, parties are able to avoid the high cost structure found in the banking
industry. Lendico investors and borrowers both benefit from attractive terms. Lendico
operates its marketplace platform across Europe including Spain, the Netherlands,
Germany, Austria and Poland as well as South Africa.
Co-Founder: Dr. Clemens Paschke
Co-Founder: Philipp Petrescu
Source:
https://www.crunchbase.com/organization/lendico
LendingClub

Ownership: Public (NYSE: LC)
Domain: https://www.lendingclub.com/
Company Description: LendingClub is a platform where those needing loans can come
together with investors looking to make individual loans. LendingClubs intentions are to
break down the historical model where banks hold clients savings and give them arduously
low returns, while they make hundreds of basis points of margin. LendingClub monetizes
primarily through a 100bps service charge on payments as well as loan origination fees.
Lenders can either hand-pick loans or invest in a diversified package of loans created by
LendingClubs risk-assessment models. By the end of 2014 the company had facilitated
more than $7.6B worth of loans.
CEO: Renaud Laplanche
COO/CMO: Scott Sanborn
Source:
https://www.crunchbase.com/organization/lendingclub
August 2015
LendingHome

Type: Real Estate
Ownership: Ribbit Capital, Foundation Capital
Domain: http://www.lendinghome.com/
Company Description: LendingHome is the worlds leading mortgage marketplace.
LendingHome is reimagining the mortgage process from start to finish, creating a
marketplace where borrowers and investors meet to fund mortgage transactions.
LendingHome leverages technology and data to drive strong financial results for investors
across its unique mortgage products. LendingHome offers mortgage and real estate related
loan products including bridge loans, rental loans and, soon, consumer mortgages.
LendingHome began by focusing on property investors who needed financing either for a
home they intended to re-sell or for a stabilized rental asset.
Co-Founder, CEO: Matt Humphrey
Co-Founder, President: James Herbert
Source:
https://www.crunchbase.com/organization/lendinghome
https://www.lendinghome.com/about
Lendio

Ownership: Highway 12 Ventures, Tribeca Venture Partners, North Hill Ventures, Napier
park Global Capital, Runa Capital, Pivot Investment partners, Blumberg Capital, Square 1
Bank, GSA Venture Partners
Headquarters: South Jordan, UT
Domain: http://www.lendio.com/
Company Description: Lendio is a free online service that helps business owners find the
right small business loans within minutes. Lendio unites the small business loan industry,
bringing all options together in one place from short-term specialty financing to long-term
low-interest traditional loans. The companys technology makes small business lending
simple, decreasing the amount of time and effort it takes to secure funding. Lendio partners
with major banks and lending institutions across the nation to provide borrowers the best
options for their business. Lendio offers small businesses different loan products such as
traditional business term loans, business financing, equipment financing, startup loans and
short-term loans.
Co-Founder, CEO: Brock Blake
Co-Founder, CTO: Trent Miskin
Source:
https://www.crunchbase.com/organization/lendio
http://www.lendio.com/faq/
August 2015
LendKey
Founded: April 1, 2007

Type: Consumer
Ownership: Silicon Valley Bank, DFJ Gotham Ventures, Brazos Group, TTV Capital,
Zelkova Ventures, Tourne View Ventures, Update Partners
Domain: https://www.lendkey.com/
Company Description: LendKey is transforming a $3.2T consumer lending market by
connecting thousands of banks and credit unions with millions of borrowers online. The
company accomplishes this through its end-to-end lending platform, which allows financial
institutions to create online lending programs and bring low-cost loans directly to
consumers. LendKey's turnkey solution allows lenders to quickly launch online lending
programs, attract new borrowers and grow their portfolios. LendKey's people and platform
takes care of every aspect of online lending, including demand generation, online
decisioning, loan origination, loan servicing and balance sheet management. LendKey offers
online lending programs in auto loans, student loans, home improvement loans and
personal loans.
Co-Founder, CEO: Vince Passione
Chief Revenue Officer: Brad Kime
Source:
https://www.crunchbase.com/organization/lendkey-technologies-inc
http://www.lendkey.com/our-story/?sk=organic
Lendstreet

Type: Consumer
Ownership: CrunchFund, Kapor Capital
Headquarters: Sunnyvale, CA
Domain: https://www.lendstreet.com/
Company Description: Lendstreet is a company that uses technology and connections
within the financial sector to help people get out of debt, rebuild credit and get on their feet.
They do this by negotiating with creditors to refinance debt and customizing payments via
social lending. Lendstreet aims to tackle the social problem of heavy debt burdens by
correcting accredited investors with borrowers with distressed debt to provide higher
returns for investors and debt restructuring, settlement and credit counseling for the
borrower.
Co-Founder, Position: Jerry Nemorin, CEO
Source:
https://www.crunchbase.com/organization/lend-street-financial-inchttps://www.linkedin.com/company/lend-street
https://www.linkedin.com/company/lend-street
August 2015
LiftForward
Founded: September 1, 2013

Ownership: Varadero Capital, Garrison Point, GLO Finance Limited
Domain: https://www.liftforward.com/
Company Description: LiftForward operates a marketplace loan platform that provides
capital to small businesses and franchises. The companys hosted marketplace solutions
enable retailers, manufacturers and suppliers to connect their small business customers with
financial products. LiftForward offers loans from $10k-$1M with rates starting at 8% and
approval in less than one day available.
Position: Jeffrey Rogers, President and CEO
Position: Chris Reilly, Chief Risk Officer
Source:
https://www.liftforward.com/team/
https://www.crunchbase.com/organization/liftforward-inc
loanDepot

Type: Consumer
Ownership: Private
Headquarters: Foothill Ranch, CA
Domain: https://www.loandepot.com/
Company Description: loanDepot is an emerging-growth nonbank consumer lender and
market leader offering mortgage and nonmortgage lending products in all 50 states.
loanDepot says it is disrupting consumer finance and redefining the market with less
division between mortgage and nonmortgage credit amid changes in consumer behavior
and technology, access to credit, economic cycles and market consolidation. In May 2015,
loanDepot announced that it would develop its own online marketplace as it leverages its
existing technology, advanced predictive data science, lending history and infrastructure to
evolve its product lines. loanDepot plans to offer $5,000 to $35,000 personal loans that
include approval in 5 minutes or less using proprietary, internally built credit score
modeling, funding in as little as three days, 3- to 5-year terms and rates as low as 6.17%
APR. According to loanDepot, investors have committed $650M to the new marketplace
platform with another $1B in available capital from interested investors.
Co-Founder, CEO: Anthony Hsieh
President, COO: Dave Norris
Source:
https://www.crunchbase.com/organization/loandepot
August 2015
Lufax

Type: Consumer
Ownership: China International Capital Corporation, CHD Investments, BlackPine Private
Equity
Domain: https://www.lufax.com/
Company Description: Shanghai Lujiazui International Financial Asset Exchange (Lufax)
is an online marketplace for the origination and trading of financial assets in China. Lufax,
which launched in 2012, has arranged more than 200,000 peer-to-peer loans worth a total of
$2.5B, putting it on par with the largest players in online lending in the United States. All
loans are funded by individuals, not by institutional money. Lufax collects fees of about 4%
from the borrowers, and the loans typically yield about 6%-8%. Unlike U.S. players that
are online-only, Lufax also operates about 100 storefronts across 80 cities where borrowers
can arrange loans. The company doesnt make automated credit decisions but interviews
first-time borrowers over the phone. Lufax uses internet technology to help satisfy investing
and financing needs. Lufax has over 7M registered users with close to 50% of transactions
being handled via mobile.
Chairman & CEO: Gregory Gibb
Source:
https://www.crunchbase.com/organization/lufax
MarketInvoice

Ownership: Private
Headquarters: London, England, UK
Domain: https://www.marketinvoice.com
Company Description: MarketInvoice is one of Europe's largest peer-to-peer finance
providers, connecting businesses with outstanding invoices to investors. MarketInvoice is
disrupting the invoice finance industry with innovative technology, best-in-class customer
service and a new approach to funding working capital. MarketInvoices online platform
gives businesses access to funds in outstanding invoices, otherwise tied up for between 30 to
120 days. Businesses can sign up online, sell an invoice and draw down funds on the same
day. A global pool of sophisticated accredited and institutional investors fund the invoices
through their marketplace platform, including the UK Government since August 2013 when
they became an active investor on MarketInvoice as part of the British Business Bank
initiative to provide SMEs with access to finance. Since launching in 2011 MarketInvoice
has seen more than 430M worth of invoices traded.
CEO: Anil Stocker
CFO/COO: Ilya Kondrashov
Source:
https://www.crunchbase.com/organization/marketinvoice
https://www.marketinvoice.com/how-it-works
August 2015
Money360
Founded: 2010
Type: Real Estate
Ownership: Private
Headquarters: Ladera Ranch, CA
Domain: www.money360.com/
Company Description: Money360 is an online marketplace for commercial real estate
loans. Money360 enables borrowers to directly access affordable commercial real estate
loans through an innovative online lending platform, eliminating the overhead and
processing costs associated with traditional banking models. Loans are funded by banks,
insurance companies, pension funds or other accredited investors through an online
marketplace, enabling borrowers to obtain competitive rates, flexible terms and efficient
service while enabling investors to receive better returns than those offered by traditional
investment vehicles.
Founder, CEO: Evan Gentry
Co-Founder, President: Dan Vetter
Source:
https://www.crunchbase.com/organization/money360
https://www.money360.com/
P2Binvestor

Ownership: Private
Headquarters: Denver, CO
Domain: https://www.p2bi.com/
Company Description: P2Binvestor is a crowdfunded marketplace receivables finance
company operating an investment platform for small- and mid-sized businesses.
P2Binvestors innovative peer-to-business (P2B) crowd-lending approach offers growing
companies competitively-priced working capital while investors earn fair returns and enjoy
the satisfaction of supporting small and medium businesses. P2Binvestor funds and
advances a line of credit to small businesses of up to 90% of the receivables balance. The
line is open to accredited investor participation through P2Binvestors platform, giving
investors access to short-term, asset-backed investment opportunities.
Co-Founder & Chairman: R. Bruce Morgan
Co-Founder, CEO: Gabriella Krista Morgan
Source:
https://www.crunchbase.com/organization/p2binvestor
https://p2bi.com/how-it-works-crowdlending-platform/
August 2015
Patch of Land

Type: Real Estate
Ownership: Merritt Investments, SF Capital Group, SeedInvest, Ron Suber
Domain: https://www.patchofland.com
Company Description: Patch of Land is a Peer-to-Real-Estate (P2RE) lending
marketplace that matches accredited and institutional investors seeking high-yield, shortterm, asset-collateralized investments to borrowers seeking more timely and consistent
sources of funding for rehabbing properties across the United States. Patch of Lands goal is
to solve the problem of inefficient, fragmented and opaque real estate private lending by
using technology and data-driven processes to create transparency and to efficiently
underwrite projects for borrowers with real estate projects that are routinely bypassed by
traditional lenders. Borrowers are able to apply for loans ranging between $100k-$1M and
receive funding in as little as seven days.
Co-Founder, Chairman: Carlo Tabibi
Co-Founder, CEO: Jason Fritton
Source:
https://www.crunchbase.com/organization/patch-of-land
https://patchofland.com/about/
Pave

Type: Consumer
Ownership: Private
Domain: http://www.taulia.com/en/
Company Description: Pave is a marketplace lending platform where talented individuals
can borrow funding at affordable rates. Pave uses the FICO score as a baseline for its
underwriting, but also considers alternative factors that might demonstrate financial
responsibility and creditworthiness such as education, employment history, current job
status and future potential. Borrowers on Pave receive loans up to $25,000 with
personalized rates starting at 6%, payable over 2- or 3-year terms. Funding for Pave loans
comes from a community of accredited investors who care about providing the next
generation with the tools they need to get ahead.
Co-Founder: Oren Bass
Co-Founder: Sal Lahoud
Source:
https://www.crunchbase.com/organization/pave
http://www.pave.com/about
August 2015
Peerform

Type: Consumer
Ownership: Private
Domain: https://www.peerform.com/
Company Description: Peerform is a peer-to-peer lending platform that connects people
who want to borrow money with investors. Peerform provides 3-year term personal loans
ranging from $1,000-$25,000. Borrowers create listings for a fixed-rate personal loan and
are then funded by investors who chose their target return and build their portfolios.
Peerform offers investors a new asset class with which they can diversify and optimize their
portfolio. Using its proprietary Peerform Loan Analyzer, developed in conjunction with
leading economists, Peerforms differentiated underwriting process enables individuals with
credit score as low as 600 to secure funds.
Chairman: Gregg Schoenberg
Co-Founder, CEO: Michael Rapaport
Source:
https://www.crunchbase.com/organization/peerform
https://www.peerform.com/how-it-works/
PPDAI

Type: Consumer
Ownership: Susquehanna International Group, Lightspeed China Partners, SIG, Essentia
Equity, Sequoia Capital, VMS Capital, Legend Capital, Alibaba Capital Partners
Domain: http://www.ppdai.com/
Company Description: PPDAI is an online platform for peer-to-peer small unsecured loans
in China. It builds a safe, high-performance, honest network platform with creative
technology and ideals. PPDAI standardizes consumer debit and credit behaviors, and offers
returns to both lenders and borrowers.
CEO: Zhang Jun
CEO: Hu Honghui
Source:
https://www.crunchbase.com/organization/ppdai
August 2015
Pret DUnion

Type: Consumer
Ownership: Private
Headquarters: Issy les Moulineaux, France
Domain: http://www.pret-dunion.fr/
Company Description: Pret D'Union provides an online platform designed to connect and
facilitate financial transactions between individual lenders and borrowers (or "peers")
without the intermediation of a traditional financial institution. The company was founded
in 2009 and is headquartered in Issy les Moulineaux, France.
Co-Founder, CEO: Charles Egly
Co-Founder, CEO: Geoffroy Guigou
Source:
https://www.crunchbase.com/organization/pret-dunion
PRIMARQ
Founded: 2010
Type: Real Estate
Ownership: Private
Domain: http://www.primarq.com/
Company Description: PRIMARQ is an integrated capital market system that intermediates
equity investing in owner-occupied residential real estate between homebuyers and
homeowners with a market of investors seeking to participate in home price movement.
Rather than the traditional single investor single owner proposition utilizing excessive
mortgage debt financing, PRIMARQ envisions a deleveraged housing finance system in
which investor equity capital supplements a homeowners down payment, thereby reducing
the amount of debt financing utilized, while sharing home price risk. This improves overall
affordability and sustainable homeownership. As part of its model, PRIMARQ
encompasses both primary and secondary investing and trading, wherein investors may at
their discretion sell their investments on a secondary basis within PRIMARQ, thereby not
relying on the homeowner to sell or refinance his/her property to monetize the equity
investor.
Co-Founder, Chairman: Steve Cinelli
Senior Managing Director: Kenneth Herzberg
Source:
http://primarq.com/
August 2015
Prodigy Finance

Type: Consumer
Ownership: Private
Headquarters: London, England
Domain: https://www.prodigyfinance.com/
Company Description: Prodigy Finance funds international students to attend the world's
top ranked business schools. Through an online platform, a community of alumni and
other investors earn low risk, competitive returns, while postgraduate students gain access
to higher education they otherwise might not have been able to finance. Since 2007, Prodigy
Finance has disbursed in excess of $75M to students from 92 nationalities, with a
repayment rate of over 99% across the total portfolio. Prodigy Finance considers itself a
social enterprise: 75% of its student borrowers come from developing world countries and
34% hail from BRIC nations alone. The majority of these students then return to their
home countries after graduationbringing back global business networks and learnings to
develop their home regions. So far, Prodigy Finance has funded at least eight entrepreneurs
who have created jobs in India, Canada, and the United Kingdom.
Co-Founder, CEO: Cameron Stevens
CFO: Alastair Hops
Source:
https://www.crunchbase.com/organization/prodigy-finance
https://prodigyfinance.com/how_it_works
Prosper

Type: Consumer
Ownership: Sequoia Capital, Accel partners, DAG Ventures, Institutional Venture Partners,
BlackRock, Fidelity Ventures, Meritech Capital Partners, QED Partners, Credit Suisse,
Francisco Partners, Beyer Capital, BBVA Ventures, Target Ventures, USAA, Neuberger
Berman
Domain: http://www.prosper.com/
Company Description: Prosper is the first peer-to-peer lending marketplace in the United
States with more than 2.2M members and over $2B in funded loans. Prosper allows people
to invest in each other in a way that is financially and socially rewarding. On Prosper,
borrowers list loan requests between $2,000-$35,000 and individual lenders invest as little as
$25 in each loan listing they select. In addition to credit scores, ratings and histories,
investors can consider borrowers' personal loan descriptions, endorsements from friends
and community affiliations. Prosper handles the servicing of the loan on behalf of the
matched borrowers and investors.
Chairman: Stephan Vermut
CEO: Aaron Vermut
Source:
https://www.crunchbase.com/organization/prosper
https://www.prosper.com/welcome/how-it-works/
August 2015
OnDeck

Ownership: Public (NYSE:ONDK)
Domain: http://www.ondeck.com/
Company Description: OnDeck, a leading platform for small business loans, uses advanced
lending technology and analytics to assess creditworthiness based on actual operating
performance and not solely on personal credit. The OnDeck Score, the companys
proprietary small business credit scoring system, evaluates thousands of data points to
deliver a credit decision rapidly and accurately. Small businesses can apply for a line of
credit or term loan online in minutes, get a decision immediately and receive funds as fast as
the same day. OnDeck also partners with small business service providers, enabling them to
connect their customers to OnDeck financing. OnDecks diversified loan funding strategy
enables the company to fund small business loans from various credit facilities,
securitization and the OnDeck Marketplace, a platform that enables institutional
investors to purchase small business loans originated by OnDeck.
CEO: Noah Breslow
COO: James Hobson
Source:
https://www.crunchbase.com/organization/on-deck
https://www.ondeck.com/company/
Ratesetter

Type: Consumer
Ownership: Private
Domain: http://www.ratesetter.com/
Company Description: RateSetter is a peer-to-peer (P2P) lending exchange, allowing people
to lend and borrow money directly with each other, setting their own interest rates and not
being forced to take a rate set by a bank. RateSetter cuts the cost of borrowing and enables
those already in debt to get out of it quicker, while at the same time increasing returns for
savers. For borrowers there are no penalties for early repayment of a loan. RateSetter was
launched in September 2010 and is available to customers throughout the United Kingdom.
Savers can invest as little as 100 and borrowers can get loans of up to 20,000. RateSetter
uses industry-leading fraud prevention and credit checking services, and has created a
Provision Fund to further protect savers. As of June 2015, Ratesetter had ~23,580 active
investors all with 100% track record, meaning no investor has lost a penny thanks to the
companys Provision Fund.
Founder, CEO: Rhydian Lewis
Co-Founder, CCO: Peter Behrens
Source:
https://www.crunchbase.com/organization/ratesetter
https://www.ratesetter.com/aboutus/faq
August 2015
Realty Mogul

Type: Real Estate
Ownership: Canaan Partners, VoiVoda Ventures, Microsoft Accelerator-Tel Aviv
Domain: https://www.realtymogul.com/
Company Description: Realty Mogul is a marketplace for accredited investors to pool
money online and buy shares of pre-vetted investment properties. Realty Mogul was
founded in 2013 with a singular objective: Make it easy for investors to invest in real estate
together. With over 15,000 active accredited and institutional investors calling themselves
Realty Mogul members, the companys devoted crowd-investing community has invested
more than $70M in over 240 properties. For accredited and institutional investors looking
to diversify portfolios, Realty Mogul offers a fast, easy, frictionless platform that serves as a
21st century bridge to previously inaccessible investment opportunities. And for both real
estate investment sponsors looking to raise equity and borrowers looking for a bridge loan,
Realty Mogul provides access to equity and debt that could take several months to secure
through more traditional means.
CEO: Jilliene Helman
CTO: Justin Hughes
Source:
https://www.crunchbase.com/organization/realty-mogul
https://www.realtymogul.com/
RealtyShares

Type: Real Estate
Ownership: Menlo Ventures, General Catalyst Partners, 500 Startups
Domain: https://www.realtyshares.com/
Company Description: RealtyShares is an online marketplace for real estate investing.
RealtyShares is a real estate crowdfunding platform that provides accredited investors
access to pre-vetted real estate investment properties and an opportunity to invest as little
as $5,000 into each property. With RealtyShares, investors have access to a range of real
estate investment options including both debt and equity investments in commercial and
residential real estate properties. Each investor has access to information necessary to make
an informed investment decision and all investing activity, including execution of legal
documents and transfer of investor funds, takes place securely through the RealtyShares
platform.
Founder, CEO: Nav Athwal
Source:
https://www.crunchbase.com/organization/realtyshares
https://www.realtyshares.com/how-it-works
August 2015
Receivables
Exchange

Ownership: Bain Capital Ventures, Prism Venture management, StarVest Partners,
RedPoint Ventures, Fidelity Ventures
Domain: https://www.recx.com/
Company Description: The Receivables Exchange (RecX) is an auction based
marketplace connecting large corporate sellers of trade receivables to a broad network of
institutional buyers. Transactions over the Exchange are standardized and structured to
result in a "true sale" of the receivables, thus offering balance sheet benefits to sellers and
attractive risk-adjusted returns to buyers. The auction model provides corporations with a
flexible, efficient and transparent channel to monetize receivables while providing investors
access to the accounts receivable market. In September 2011, the NYSE and RecX partnered
to jointly market RecX to both private and publicly held companies. Operating out of
shared office space at the New York Stock Exchange headquarters on Wall Street, the
companies have facilitated the trade of more than $4B of trade receivables over the RecX
platform.
CEO: James Toffey
Managing Director: Michael Gonik
Source:
https://www.crunchbase.com/organization/the-receivables-exchange
http://recx.com/how-it-works/
Renrendai
Founded: May 1, 2010

Type: Consumer
Ownership: TrustBridge Partners, Honghe Venture Capital
Headquarters: Beijing, China
Domain: http://www.renrendai.com/
Company Description: Renrendai is a Beijing-based company providing P2P financial
services such as loans, debts, investment and others. It targets white-collar employees and
small business owners, charging borrowers a management fee of 0.3% of the borrowed
money, and a service fee of up to 5% for high-risk borrowers. The returns on
Renrendai.com loans are between 10%-18%, much higher than the 3.25% offered by oneyear turn deposits in banks. The company also controls default and credit risks by
measuring borrowers' income, occupation, assets and family connections to make
underwriting decisions. Renrendai was founded in May 2010 and currently has a service
network covering more than 2,000 regions.
Co-Founder, CEO: Xinhe Yi
CEO: He Li Xin
Source:
https://www.crunchbase.com/organization/renrendai
August 2015
SocietyOne

Type: Consumer
Ownership: News Corp, Australian Capital Equity, Global Founders Capital, Reinventure,
Consolidated Press holdings
Headquarters: Sydney, Australia
Domain: http://www.societyone.com.au/societyone-home
Company Description: SocietyOne is an Australian-based P2P marketplace lender that
facilitates loans up to $30K. SocietyOne connects those in needs of capital with investors
who are looking for predictable cash flows. The SocietyOne platform is currently only open
to wholesale clients, although the company is looking to open up to retail investors in the
near future.
Co-Founder, Position: Matt Symons, CEO
Co-Founder: Greg Symons
Source:
http://www.societyone.com.au/about
https://www.crunchbase.com/organization/societyone
SoFi

Type: Consumer
Ownership: Peter Thiel, Wellington management, Lakestar, Institutional Venture Partners,
Third Point Ventures, baseline Ventures, DCMN, SharesPost Investment Management,
Innovation Endeavors, Thomvest Ventures, Discovery Capital, QED Investors, SGVC
Domain: http://www.sofi.com/
Company Description: SoFi is a leading marketplace lender and provider of student loan
refinancing, with more than $3B lent to date. SoFi helps early stage professionals accelerate
their success with student loan refinancing, low down-payments mortgages, mortgage
refinancing and personal loans. SoFi's proprietary underwriting approach looks beyond
FICO to account for education and career success. SoFi offers individual and institutional
investors the ability to create a positive social impact on the communities they care about
while earning compelling rates of return.
Co-Founder, CEO, Chairman: Mike Cagney
CFO/COO: Nino Fanlo
Source:
https://www.crunchbase.com/organization/social-finance
https://www.sofi.com/
August 2015
Upstart

Type: Consumer
Ownership: Google Ventures, Khosla Ventures, Mark Cuban, New enterprise Associates,
Eric Schmidt, Founders Fund, First Round, Marc Benioff, Collaborative Fund, Kleiner
Perkins Caufield & Byers
Headquarters: Palo Alto, CA
Domain: https://www.upstart.com/
Company Description: Upstart is an online lending platform that uses data to bring
together high potential borrowers and investors. Founded by ex-Googlers, Upstart goes
beyond the FICO score to provide financing to people based on signals of their potential,
including schools attended, area of study, academic performance and work history.
Upstarts underwriting model identifies high quality borrowers despite limited credit and
employment experience. Upstart offers 3-year fixed interest loans. Funds can be used for
almost anything; examples include starting a business, eliminating student debt or paying
off credit card debt.
Founder: Dave Girouard
Co-Founder: Paul Gu
Source:
https://www.crunchbase.com/organization/upstart
https://www.upstart.com/
Zopa

Ownership: Wellington Partners, Orange Growth Capital, Bessemer Venture partners,
Augmentum Capital, Draper Associates, Forward Partners, Arrowgrass Capital, Balderton
Capital, Benchmark
Domain: https://www.zopa.com/
Company Description: Zopa offers peer-to-peer loans with low rates, flexible terms and no
early repayment fees in the United Kingdom. Zopa works in the following way: the
company first categorizes borrower credit grades with an A*, A, B, C or Y rating; then
lenders make offers that vary by money amount and time period for persons with a certain
credit grade; borrowers then agree on the aggregate offered rate. Zopa takes on such
responsibilities as distributing money between parties, completing the legal paperwork,
performing borrower identity/credit checks and employing a collections agency that chases
missed payments for the lender. Zopa also mitigates risk for lenders by enforcing monthly
direct debit repayment, making borrowers sign a legal contract, and allowing lenders to
lend small chunks of money to individual borrowers (i.e., someone lending 1,000 would
have their money spread across say 100 borrowers). The company itself makes money by
charging a fixed fee for borrowers and 1% annual fee for lenders.
Co-Founder, CEO: Giles Andrews
COO: Jaidev Janardana
Source:
https://www.crunchbase.com/organization/zopa
http://www.zopa.com/lending/how-lending-money-works
August 2015
# 2 : T O D A Y S W E A L T H M A N A G E M E N T : R O B O - A D V I S O R S
Robo-advisors are shaking up the traditional wealth management industry by leveraging

technology to create a scalable advisory business for the masses.
The Path To RoboAdvisors
Back before minute-by-minute coverage of the stock market was available to the general
public, American households were much less focused on their investment assets. In 1970,
only 15% of people in the United States owned any stock and mutual fund assets were a
mere $48.3B, or $296B adjusted for inflation. This 15% was affluent enough to garner the
attention of stock brokers, but as we progressed into the 1980s and 90s, mutual funds saw
a rapid inflow of assets driven by increased wages and increasing prosperity of the general
population. Between 1990-99, the amount of money in employer-sponsored pension plans
and IRAs jumped from $200B to $2.4T. During that same period, total mutual fund assets
increased from a little over $1T to nearly $7T. During the early part of the decade mutual
fund fees were steep, with the average expense ratios reaching as high as 100bps annually,
with many specialized funds charging an additional load fee as high as over 5%. However,
as assets increased, average fees dropped 26% to 74bps. And then along came exchange
traded funds (ETFs)
ETFs
While mutual fund assets swelled and their fees had dropped, another new and even lower
cost investment vehicle emerged: exchange traded funds (ETFs). ETFs are essentially
cheaper mutual funds that are actively traded on the open-market just as an individual
security. Many of these ETFs are structured as index funds that passively follow segments
of the market, such as the SPDR SPY ETF, which seeks to correspond to the S&P 500. ETFs
provide investors with diversification. In addition, ETFs are significantly more cost
effective compared to an actively managed fund. For example, the Vanguard Total Stock
Market ETF has an expense ratio of 0.05% compared to Fidelitys Contrafund which has
an expense ratio of 0.64% .These advantages are evidenced by the surge in assets in the last
15 years as total assets invested in ETFs increased from $79B in 2000 to nearly $3T in 2015.
Stockbrokers And
Online Trading
Firms
Similar to the emergence of the ETF as a low-cost alternative to traditional mutual funds, a
comparable transition occurred within the legacy stock brokerage business. In the 1980s,
brokers handled trades person-to-person and charged customers trading fees well into the
hundreds of dollars on large orders. As technology has advanced, however, it has brought
the stock brokerage industry into a new era in which more and more retail trading is done
online through brokerages such as Charles Schwab, TD Ameritrade, Vanguard, E*TRADE
and Fidelity. As brokers moved more of their business online, it opened up an opportunity
for the financial advisory business to leverage this shift and conduct more business online.
Specifically, the financial advisors began providing clients with financial guidance on
everything from retirement planning to asset allocation strategies via the internet. This
service was more convenient for customers and helped drive a larger online presence for the
financial advisors as the brokerages were already pushing into the space.
Todays RoboAdvisors
Just as the brokerage industry transitioned online, the financial advisory business is in the
process of a similar transition. The economics of the business are in flux as ETFs proliferate
August 2015
and new asset managers enter the space. These new robo-advisors are using price, lower
minimums, scale, ETFs and a millennial-focused digital strategy to attract the masses in
addition to potentially taking high value clients from traditional firms. The 11 largest firms
(Wealthfront, Betterment, AssetBuilder, Covestor, Financial Guard, FutureAdvisor,
Jemstep, MarketRiders, Personal Capital, Rebalance IRA, and SigFig) had a combined
AUM of almost $19B at the end of 2014, up 65% from just over $11B in April 2014,
according to Corporate Insights. Within 36 months, Wealthfront, one of the largest online
wealth managers, has seen their assets climb from under $10M initially to more than $2B.
Exhibit 20
AUM OF TOP 11 ROBO-ADVISORS

$20
$18
$16
Billions
$14
$12
$10
$8
$6
$4
$2
$0
April 14'
January 15'
Source: Corporate Insights, Piper Jaffray
Why Robo-Advisors?
The idea behind these robo-advisors is simple: technological progress has opened up a huge
new market for the financial advisory business by increasing scale and inefficiency within
business models. New advances in technology have proven to be positive supply shocks to
the advisory business, accomplishing the same task at lower costs and with smaller
minimum portfolio balances. At the same time, the demand for financial advice is huge and
growing as stock market participation in the United States is around 50%, up from 15% in
1970, according to a Gallup poll. This adds up to an industry that is primed for a surge in
growth as firms tap into a previously untouched new market of investors. In our opinion,
there are five primary reasons robo-advisors are growing rapidly:
1.
Price: Robo-advisors are cheaper than traditional money managers. With advisors
charging as high as 1% fees in addition to the fee to invest in mutual funds or
ETFs, the costs add up quickly. With robo-advisors, you see your fee (sometimes
0%) upfront. In addition, the average mutual fund expense ratio is 0.70% vs. the
ETF average of 0.44%, making it significantly cheaper to invest in ETFs.
August 2015
2.
Lower Minimums: As traditional advisors often charge minimums that may be up

to $100K and higher, they often exclude the majority of the public, and as a result
there are a large number of people who are not receiving financial guidance. With
minimums down significantly and often under $10K, with some as low as $0, these
robo-advisors are attempting to tap into a new segment of the population that is in
need of financial guidance.
3.
Scale: Due to their digital structure, use of technology and the ability of Modern
Portfolio Theory-based asset allocation strategies to be calculated online, there is
an inherent scalability advantage. These businesses have little overhead as they are
predominately run through financial software, and with the lack of a ceiling on
how much in assets can be managed, these ventures have potential to significantly
grow their asset bases without incurring additional expenses.
4.
Leveraging low-cost ETFs: Just as index funds have seen assets rise recently with
$114B of new cash inflows in 2013 alone, more and more people are taking
advantage of the proliferation of index funds to passively invest their assets. These
types of investments are a good fit for people who do not want to have to worry
about their money on a daily basis or take the time to individually select stocks.
5.
Digital and Millennial Bias: All robo-advisors provide easy to use mobile, tablet
and desktop applications to track a portfolio. This adds another aspect of
simplicity to the picture and is aiming to take advantage of the generational shift
towards mobile-based and technology-adopting platforms.
Leveraging Modern
Portfolio Theory for
the Masses
First theorized by Nobel Laureate Harry Markowitz, Modern Portfolio Theory (MPT)
suggests that investors can limit volatility in their portfolios while improving performance
through diversification in various types of securities, specifically in assets whose
performance is not correlated. Managers do this through diverse asset allocation in ETFs
and other low-cost index funds to cut down on expenses and diversely invest clients assets
across asset classes. MPT posits that a portfolio exhibits certain levels of risk and return in
correlation with its composition. In other words, an individual can select a certain level of
risk, and then MPT will generate the appropriate asset allocation strategy. The reason
popularity is surging among many MPT-driven robo-advisors is that they cost significantly
less compared to traditional advisors, in addition to the much lower minimum balances due
to the scalable business model. MPT is enabling firms to allocate investor resources quickly
and automatically through automated asset allocation software.
How Do These
Robo-Advisors
Work?
To really see how some of these new companies can add value to the everyday retail
investor, investors need to understand how the businesses work. We believe the largest
three robo-advisors (Betterment, Personal Capital, and Wealthfront) are generally
representative of the industry as a whole.
August 2015
Betterment
What is Betterment? Betterment is an example of a robo-advisor; it has more than $2B in

assets under management.
What questions do they ask? They offer a similar initial client experience to other robo
advisors such as Wealthfront except Betterment only asks:
1. I am __ years old and (retired/not retired). My annual income is $___
2. Select a priority: Safety net, retirement, or general investing
How does Betterment invest? After selecting one of the three initial possible investment
objectives, Betterments software generates a recommended allocation of a maximum of 13
ETFs consisting of a mix of six equity and seven bond ETFs, with approximately 75%
managed by Vanguard and the rest through iShares. Betterments investment strategy is
based on the Modern Portfolio Theory. After weighing options, clients can decide whether
to have Betterment manage their investments for a fee of 15-35 bps annually. The company
also offers automatic rebalancing, similar to Wealthfronts process. Another popular
feature offered by Betterment is goal-based wealth management.
What are client goals? Betterment wants clients to set any number of financial goals (e.g.,
saving money for college or building retirement income), and then be able to monitor
progress on their software. Additionally, the company offers a desktop and mobile
dashboard for tracking personal finances and investments that allows clients to monitor
finances at all times. Betterment has no minimum deposit, but if a clients account is <$10k
he/she must deposit $100 each month.
Exhibit 21
BETTERMENT WEB PAGE
Source: Betterment, Piper Jaffray
Betterment Institutional: Another area in which Betterment differs slightly than

Wealthfront is in its solution to financial advisors called Betterment Institutional, which is
designed to help personal financial advisors better streamline and accelerate their ability to
August 2015
serve clients. Betterment Institutional is an automated portfolio management tool that

provides clients the same software that individual Betterment clients experience. With this
solution, Betterment is are targeting a new segment of the market that already has a
personal financial advisor, while providing scale to the existing advisors business.
Personal Capital
What is Personal Capital? Personal Capital is a company with a slightly different business
model that combines financial software and personal financial advisors and has $1B assets
under management. The company has two segments: financial software and asset
management.
Financial Software: Personal Capitals financial software allows clients to link accounts
from more than 10K financial institutions, and then track their personal finances quickly
and easily. The software presents a main dashboard that gives clients access to information
on their net worth, cash flow, investment performance, current fee analyzer and market
activity in one place. From here clients are able to see breakdowns of their asset class,
sector, individual security allocations and recent transactions. The financial software
segment is free and currently tracks $150B in assets.
Wealth Management: The Personal Capital wealth management experience starts with a
phone consultation with a personal financial advisor. The advisor asks prospective clients
about their goals, risk tolerance, time horizon, retirement planning and household cash
flow. The advisor then works with the companys investment team to select an appropriate
asset allocation strategy with a mix of at least 60 individual stocks to a handful of low-cost
ETFs. From there, clients can choose either to implement Personal Capitals investment
strategy for 89bps/annually (up to $1M), which will be held by Pershing Advisor services, or
continue to only track finances on Personal Capitals financial software.
Exhibit 22
PERSONAL CAPITAL WEB PAGE
Source: Personal Capital, Piper Jaffray
August 2015
Robinhood
What is Robinhood? RobinHood is an SEC-registered broker dealer that offers $0

commission stock trades. It is a free, zero dollar ($0) commissions brokerage that aims to
enable the every-day individual to participate in the market. The company wants to
essentially democratize the stock market by dramatically changing the pricing model of
brokerages. Additional features include smart notifications that alert clients when
important events happen and real-time market data streamed right to a mobile device.
How does it work? Robinhoods brokerage works just like any other way investors have
bought and sold stocks via the online brokerages that offer mobile apps. Users can buy or
sell U.S. equities in a little as three taps via a mobile device.
How can they offer free trades? The company has cut out the fat (such as Super Bowl and
other advertising) that large brokerages may have and as a result has a much lower
threshold for profitability and much less overhead. Robinhood makes money by collecting
interest from customers that upgrade to a margin account (currently in beta testing) and by
accruing interest from customers uninvested cash balances (customers are not charged).
What features do they offer? Robinhood offers state-of-the-art security protection to ensure
personal information and assets are encrypted and stored, the same fast execution used by
the large financial institutions, real-time market data, and smart notifications whenever
anything important happens to your positions.
Does Robinhood integrate with accounting software? Yes, Robinhood customers can
integrate with Turbo Tax Premier to import trade history when filing taxes. In addition,
Robinhood is looking to add Mint and other services later this year.
Who are their backers? Robinhood has raised $66M from firms New Enterprise Associates,
Index Ventures, Ribbit Capital, Google Ventures, Andreessen Horowitz, Vaizra
Investments as well as notable individuals including Snoop Dogg, Nas, Jared Leto and
Linkin Park.
Wealthfront
What is Wealthfront? Wealthfront is a robo-advisor with more than $2B in assets under
management that provides financial advice and invests clients money.
What is the process for a client to get started investing with Wealthfront? Wealthfronts
process starts with a simple survey of the investors background, age and risk tolerance by
asking investors the following questions:
1. What are you looking for in a financial advisor?
2. What is your current age?
3. What is your annual after-tax income?
4. What is the total value of your cash and liquid investments?
5. When deciding how to invest your money, which do you care about more?
Maximizing gains, minimizing losses, or both equally
6. The global stock market is often volatile. If your entire investment
portfolio lost 10% of its value in a month during a market decline, what
would you do?
Sell all, sell some, keep all, or buy more
After answering the 6 questions online, Wealthfronts software then processes the answers,
ranks the client on a 0.5-10 risk profile scale, and then for free, recommends a mix of ETFs.
August 2015
How does the company invest? Wealthfront uses Modern Portfolio Theory to recommend a
mix of ETFs, choosing from 11 ETFs incorporating stock, bond and alternative (real estate
and natural resource) funds, with the majority managed through Vanguard and iShares. If
an investor has a 10/10 risk profile, they will give him/her more exposure to both domestic
and international equities and fewer assets in municipal bonds.
Exhibit 23
WEALTHFRONT WEB PAGE
Source: Wealthfront, Piper Jaffray
On the flip side, if an investor has a 1.5/10 risk tolerance level, Wealthfront decreases
his/her foreign equity exposure and bumps up his/her municipal bond and Treasury
inflation-Protected Securities. From here, a client is then able to input his/her personal
information and have the option of self-executing their plan, or paying 25bps (after the first
$10k) for Wealthfront to manage, rebalance, and perform tax-loss harvesting on client
assets.
August 2015
Exhibit 24
WEALTHFRONT INVESTMENT WEB PAGE
Source: Wealthfront, Piper Jaffray
How does Wealthfront rebalance client portfolios? Wealthfront will periodically rebalance
client portfolios to maintain the appropriate weighting and asset allocation. This process is
dependent on whenever deposits are made or dividends are earned sufficient enough to add
to asset classes that are under-weighted in the portfolio. There is no strict date or rule when
this will occur within an individual clients portfolio.
August 2015
Fee Comparison
To see the price competition within the robo-advisor space, below is a breakdown of fees
for 19 major robo-advisors compared with six mutual funds and ETFs.
Exhibit 25
FEE COMPARISON
Date of Inception
Segment
Company
Fees
Minimum Deposit
1/1/2008
Robo-Advisor
Betterment
0.15%-0.35% annually
$0
1/1/2013
Robo-Advisor
Blooom
$1/month accounts <$20k, then $15/month
$0
4/7/2009
Robo-Advisor
Hedgeable
0.3%-0.75%
$0
9/22/2003
ETF-Bond
iShares AGG
0.08%
$0
5/15/2000
ETF- Equity
iShares IVV
0.07% exp ratio
$0
7/22/2002
ETF-Bond
iShares LQD
0.15%
$0
5/1/2007
Robo-Advisor
LearnVest
$19 per month
$0
1/1/2008
Robo-Advisor
Loyal3
N/A
$0
1/15/2008
Robo-Advisor
MarketRiders
$14.95 per month + trading fees
$0
1/22/1993
ETF- Equity
State Street SPY
0.09% exp ratio
$0
5/24/2001
ETF- Equity
Vanguard VTI
0.05% exp ratio
$0
4/3/2007
ETF-Bond
Vanuard BND
0.08%
$0
2/19/2013
Robo-Advisor
WiseBanyan
N/A
$10
5/24/2012
Robo-Advisor
DriveWealth
$2.99 per trade
$50
12/0/1973
Mutual fund- Equity
American Funds Grow th Fund of America
0.68% + 5.75% front-end load
$250
6/1/2010
Robo-Advisor
Motif Investing
$9.95 per motif, $4.95 per stock/ETF
$250
12/1/2011
Robo-Advisor
WealthFront
$0 up to $10k, then 0.25% annually
$500
1/1/2010
Robo-Advisor
Financial Guard
$15.95 per month
$1k
5/11/1987
Mutual Fund-Bond
PIMCO Total Return Fund
0.85% exp ratio +3.75% front-end load
$1k
9/18/1986
Mutual fund- Bond
Templeton Global Bond Fund
0.90% exp ratio + 4.25% front-end load
$1k
1/1/2008
Robo-Advisor
SigFig
$10 per month
$2k
5/17/1967
Mutual fund- Equity
Fidelity Contrafund
0.64%
$2.5k
6/9/2000
Mutual fund- Bond
Vanguard Inflation-protected Securites Fund
0.20%
$3k
4/27/1992
Mutual fund- Equity
Vanguard Total Stock Market Index
0.17%
$3k
3/9/2015
Robo-Advisor
Charles Schw ab Intelligent Portfolio
N/A
5k
8/1/2014
Robo-Advisor
Propel(x)
N/A
$5-$25k
1/1/2005
Robo-Advisor
Covestor
0.3%-1.5% + ~$1 trades
$10k
1/1/2010
Robo-Advisor
Future Advisor
0.50% annually
$10k
1/1/2010
Robo-Advisor
HedgeCoVest
2.50%
$30k
7/1/2009
Robo-Advisor
Personal Capital
0.49%-0.89% annually
$100k
8/1/2011
Robo-Advisor
Rebalace IRA
0.50% annually + trading fees
$100k
Source: Piper Jaffray, Company Websites
August 2015
Robo-Advisory
Market
These new robo-advisors are attempting to tap into and disrupt the traditional money
management and mutual fund industries. As these robo-advisors support taxable accounts
as well as IRAs and 401K rollovers, they aim to take share from the legacy players. As of
2014 IRAs and 401Ks held nearly $$7.5T and $4.5T, respectively, there is an immense
opportunity for new players to continue to take share. In addition, FinTech financial
planners are poised to take market share from the traditional personal financial advisory
business which is expected to boom over the next seven years with a 32% growth rate,
according to the Bureau of Labor Statistics. Recent success has shown that the industry has
a place for technologically savvy ventures as FinTech wealth managers have continued to
gain momentum into 2015 with Betterment as an example having grown their asset base
from $135M in Feb 2013, to $1.4B in February 2015a CAGR of 322%.
Exhibit 26
GROWTH OF IRA AND 401K ASSETS
Source: ICI Factbook, Piper Jaffray
Schwab/Fidelity/
Vanguard Enter The
Robo Space
As these new companies enter the space, the traditional legacy players are jumping in with
an attempt to take advantage of the industry tailwinds fueling the widespread growth.
Charles Schwab, a traditional mutual fund and ETF supermarket with over $2.5T in client
assets, recently launched their own independent robo-advisor services Schwab calls
Intelligent-Portfolios that charge no advisory fees on assets. Since it launched in midMarch, Intelligent Portfolios have more than $2B in AUM with 30K clients. Schwabs
solution is web-based; clients answer 12 questions and a portfolio mix of ETFs across 20
asset classes is created. The big benefit and surprise is that Schwab offers its services for
free as opposed to the AUM-based fees that others charge. Users have noted that
although the company does not charge a management fee, clients are placed into more
expensive ETFs and cash savings vehicles managed through Schwab. There is not definitive
answer on which type of model has a lower average expense ratio, as it all depends upon
each individual investment style and risk profile.
Fidelity has launched its own ventures into the space. Fidelity has partnered with both
Betterment and LearnVest to expand its services offered to clients. With Betterment,
Fidelitys financial advisors can provide clients with a Betterment portfolio and then
manage the investments through the same platform. The company has also partnered with
LearnVest, which is a FinTech startup that was acquired by Northwestern Mutual in
March 2015 for $250M. LearnVest provides financial advice through its online platform
August 2015
designed for people with all ranges of personal finance knowledge. It provides clients with a
financial planner and a customized financial plan that helps clients plan for retirement,
emergency funds, home-buying and debt repayment.
Vanguard also recently rolled out a robo-hybrid advisor service; clients initially talk to a
real adviser via videoconference about goals and risk profile, and then software creates an
optimized portfolio based on preferences. After a two-year beta test, Vanguard already has
$17B in its personal advisory business yet another sign of the fast-growing nature of this
emerging industry.
Financial Engines:
Leading The RoboAdvisor Pack
Many of the robo-advisors in this report are following a similar path already taken by
Financial Engines (FNGN). While Wealthfront, Betterment and Personal Capital have had
strong growth, total AUM is relatively modest (Wealthfront $2B, Betterment $2B, Personal
Capital $1.5B) compared with the $109.2B in AUM and $1,003B of AUC (assets under
contract) at FNGN as of 1Q15. In the following paragraphs we lay out FNGNs story, how
it works and its current market valuation.
Founding and
History
FNGN was co-founded by William Sharpe (Nobel Prize in economics, originator Capital
Asset Pricing Model, Sharpe ratio, binomial options pricing, among others), Joseph
Grundfest and Craig Johnson in 1996 with the vision of bringing high quality investment
advisory services to the masses. FNGN eventually went public in 2010 pricing 10.6M shares
at $12.00/share ($127.2M market cap) and currently has a market cap of $2.3B.
FNGN Description
and Model
FNGN provides independent, personalized investment advice and portfolio management

services to participants in employee-sponsored direct contribution (DC) plans such as 401K
plans in the U.S. We highlight that FNGN has enjoyed a considerable first-mover advantage
historically (as evidenced by its 146 S&P 500 member plan sponsors). FNGNs model has
two main drivers for revenues: its Professional Management revenue and Platform revenue.
Professional Management revenue refers to revenues earned by FNGN on the assets under
management for plan participants. We note FNGN earns ~40-50 bps on these assets. FNGN
earns Platform revenues when sponsors pay FNGN to provide a platform where
employees/potential participants can go to for financial planning tools online, even if the
employee does not elect to retain FNGN as an advisor. Below we cover several key
definitions for understanding FNGNs model and provide a simple example to illustrate
FNGNs business model.
Key FNGN
Definitions
Plan Provider: These are the companies that hold the 401Ks. Examples are Aon, Fidelity,
Voya, JPMorgan, Mercer, TRowe Price and Vanguard. FNGN has to be connected with
the plan providers to offer its services to the members who enroll with FNGN.
Plan Sponsor: These are the companies that offer the 401Ks to their employees. These
companies must hold their 401Ks at the plan providers for FNGN to be able to offer its
services and must choose FNGN to offer the service to its employees. FNGN does not
charge the sponsors for offering this service to employees but charges the individual
approximately 40-50 bps per year.
Plan Participant: These are the actual individual employees that have the 401Ks. These
individuals must elect to have FNGN as an advisor.
August 2015
Campaign: These are FNGN-sponsored marketing events that take place once a year via
mailings to individual employees or via an integrated offering with the individuals 401K
balance website. This is how FNGN converts assets under contract (AUC) into assets under
management (AUM).
AUC: Assets under contract. These are total assets within the plan sponsors that are eligible
for FNGNs services; this was $1.003T at 1Q15.
AUM: These are assets that have elected to use FNGN as an advisor and are paying fees;
this was $109.2B at 1Q15.
26-month penetration rates: Equal to AUM/AUC for assets that have been under contract
for at least 26 months. As of 1Q15 this number was ~13.0% and we note a 1% increase in
penetration generated ~$10B of incremental AUM.
Professional Services
Model Example
A Delta mechanic is a participant in Deltas sponsored 401K program that uses a plan
provider (noted above) connected to FNGN as its 401K plan provider. If Delta elects to
provide FNGNs service to its employees, all of Deltas employee 401K assets would be
counted as assets under contract. If the mechanic elected to use FNGNs services his/her
assets would be counted as assets under management (which would increase FNGNs
penetration rate) and he would begin paying fees to FNGN.
FNGN Key Metrics
FNGN has three key metrics that truly drive its model: assets under contract, assets under
management and penetration rate, which shows the connection between the two. FNGNs
entire model is based on its ability to drive the penetration rate higher (13% as of 1Q15) by
converting its assets under contract into assets under management through its campaign
efforts. Recall, FNGN earns 40-50 bps on AUM, which represents $4.0M-$5.0M on each
incremental billion of AUM. We note that with $1,003B in AUC, a 1% increase in
penetration drives ~$10B in incremental AUM. We also highlight that ~10%-15% of
potential enrollees use FNGNs platform service while not electing to use FNGN as an
advisor. This puts true penetration for all of FNGNs services at ~25%.
August 2015
Exhibit 27
FNGN KEY METRICS

Key Drivers
2010
Sponsors
Y/Y growth
Assets Under Contract (AUC)
Y/Y growth
AUM, Beginning of Period
AUM from Enrollment, Net of Cancellations
Other (employee/employer contrib./mkt adj.)
AUM, End of Period
Average AUM
Y/Y growth
Q/Q growth
2011
2012
2013
1Q15
2014
1Q16E
2015E
2016E
414
16.9%
477
15.2%
513
7.5%
553
7.8%
602
8.9%
$376,000
39.8%
$467,000
24.2%
$575,000
23.1%
$786,000
36.7%
$895,000
13.9%
$1,058,594
18.3%
$1,217,383
15.0%
$25,700
6,300
5,700
$37,700
$31,340
46.7%
$37,700
7,600
2,200
$47,500
$42,400
26.0%
$47,500
15,400
5,500
$63,900
$56,160
34.5%
$63,900
17,000
12,300
$88,200
$75,840
38.0%
$88,200
18,300
4,000
$104,400
$96,980
18.4%
$104,400
4,600
7,600
$124,400
$114,400
19.2%
$124,400
8,000
$145,409
$134,876
16.9%
S&P 500 Y/Y growth

S&P 500 Q/Q growth
12.8%
(0.0%)
13.4%
29.0%
11.9%
4.8%
6.1%
Penetration Rate (AUM as % of AUC)
10.0%
10.2%
11.1%
11.2%
11.7%
11.8%
11.9%
Penetration Rate 26+ Months
11.9%
12.6%
12.7%
13.2%
13.3%
Professional Mgmt Rev. ($M)

Y/Y growth
Pro. Mgmt Rev. % of Avg. AUM
Y/Y growth
$79.1
51%
0.253%
(3.6%)
$108.2
37%
0.255%
1.1%
$150.9
39%
0.269%
5.3%
$202.8
34%
0.267%
(0.5%)
$245.8
21%
0.253%
(5.2%)
$285.0
16%
0.249%
(1.7%)
$333.1
17%
0.247%
(0.8%)
Members
Y/Y growth
472,000
20.7%
567,000
20.1%
660,000
16.4%
753,000
14.1%
848,000
12.6%
Avg. Portfolio Size ($ 000)

Y/Y growth
$79.9
21.6%
$83.8
4.9%
$96.8
15.6%
$117.1
21.0%
$123.1
5.1%
AUM per Sponsor ($M)

Y/Y growth
$91.1
25.4%
$99.6
9.4%
$124.6
25.1%
$159.5
28.0%
$173.4
8.7%
Key Financials
Revenue
Y/Y
$111.8
$144.1
28.9%
$185.8
29.0%
$239.0
28.6%
$281.9
18.0%
$319.1
13.2%
$368.9
15.6%
$28.4
$40.8
43.7%
28.3%
$55.8
36.9%
30.0%
$79.3
42.1%
33.2%
$98.6
24.3%
35.0%
$98.8
0.2%
31.0%
$115.6
17.0%
31.3%
Adjusted EBITDA
Y/Y
Margin %
25.4%
Adj. Net Income

Adj. Net Income EPS
Y/Y
$19.3
$0.39
$18.6
$0.38
-3.3%
$25.0
$0.50
32.9%
$39.0
$0.75
50.3%
$48.9
$0.92
22.1%
$51.6
$0.97
5.6%
$61.7
$1.15
18.9%
GAAP Net Income

GAAP EPS
Y/Y
$63.6
$1.37
$15.1
$0.31
-77.6%
$18.6
$0.37
20.7%
$30.0
$0.57
54.7%
$37.0
$0.69
21.2%
$35.7
$0.67
-3.3%
$44.4
$0.83
23.8%
August 2015
Acorns

Ownership: Greycroft Partners, e.Ventures, Great Oaks Venture Capital, Garland Capital
Group, Jacobs Asset Management, Groundswell Investments, Sound Ventures, Math
Venture partners, Steelpoint Capital Ventures, Cruttenden Partners
Headquarters: Newport Beach, CA
Domain: https://www.acorns.com/
Company Description: Acorns is an investment app that allows users to round-up their
loose change and invest it using Modern Portfolio Theory. The companys app rounds up
all of a clients purchases to the nearest dollar and then sums the change to invest in a
portfolio of ETFs based on answers to a series of questions and risk tolerance. In addition,
clients can make direct deposits and lump sum deposits/withdrawals to their Acorns
account for free.
Co-Founder, Position: Jeff Cruttenden, CEO
Co-Founder, Position: Walter Cruttenden, Executive Chairman
Source:
https://www.acorns.com/about/
https://www.crunchbase.com/organization/acorns-grow
Betterment

Ownership: Northwestern Mutual, Menlo Ventures, Bessemer Partners, Francisco Partners,
Anthemis Group, Red Swan Ventures, Citi Ventures, Globespan Capital Partners
Domain: https://www.betterment.com/
Company Description: Founded in 2008, Betterment was one of the first companies to
provide investors with the opportunity for a fully automated portfolio. Betterments
algorithms provide investors with a fully diversified global portfolio that meets the
investment goals, time horizon and risk parameters of the investor primarily through the
use of ETFs. Betterment claims investors can expect 4.3% better returns than the average
DIY investor through automated rebalancing (+0.4%), lower fees (+1.25%), improving
investor behavior (+1.25%) and diversification (+1.40%). Fees range from 15 bps to 35 bps
depending on account size. We believe Betterment has ~$2B in AUM.
Co-Founder, Position: Jon Stein
Co-Founder, Position: Eli Broverman
Source:
https://www.linkedin.com/company/betterment
https://www.crunchbase.com/organization/betterment
https://www.betterment.com/
August 2015
BillGuard

Ownership: Khosla Ventures, Bessemer Venture Partners, IA Ventures, Innovation
Endeavors, SV Angel, Social Leverage, Founder Collective, Founders Fund, The R-Group,
Our Crowd
Domain: https://www.billguard.com/
Company Description: BillGuard is a personal finance security company that provides a
solution to find unauthorized charges on credit and debit card bills. By leveraging
crowdsources data, BillGuards free service scans users statements daily and alerts them of
erroneous charges and helps get their money back. Additionally, the company offers paid
services such as live support, lost wallet recovery, SSN fraud alerts and $1M identity theft
insurance.
Founder, Position: Yaron Samid, CEO
Founder, Position: Raphael Ouzan, CTO
Source:
https://www.billguard.com/
https://www.crunchbase.com/organization/billguard
Blooom

Ownership: Private
Headquarters: Overland Park, KS
Domain: http://www.blooom.com/
Company Description: Blooom is a 100% automated 401k advisor that claims ~83% of
401Ks are invested incorrectly and provides a service to analyze and optimize 401K
portfolios. Once users sign up, Blooom first uses an algorithm to determine the most
advantageous mix of available investments for the individual user. It checks the account
every 90 days. At that 90-day mark, the user receives an email that either says the equivalent
of "all good," or "we had to make some tweaks." Every few years, Blooom rebalances the
accounts according to the client's time horizon. For accounts under $20K the cost is
$1/month and for accounts greater than $20K, Blooom charges $15/month. Overall,
Blooom is able to control and monitor the current 401K portfolio and advise clients on an
optimal portfolio given the time horizon and risk profile.
Co-Founder, Position: Chris Costello, CEO
Co-Founder, Position: Randy AufDerHeide, CTO
Co-Founder, Position: Kevin Conrad, Chartered Retirement Planning Counselor
Source:
https://www.linkedin.com/company/blooom
https://www.crunchbase.com/organization/blooom
http://www.blooom.com/
August 2015
Credit Karma

Ownership: Google Capital, Tiger Global Management, Ribbit Capital, Susquehanna
Growth Equity, Viking Global Investors, FF Angel LLC, Valinor Management, QED
Investors, SV Angel, Founders Fund, Felicis Ventures, 500 Startups
Domain: http://www.creditkarma.com/
Company Description: Credit Karma is a company that aims to re-engineer the consumer
finance industry. By signing up, users get free access to their credit score from two major
bureaus. In addition to credit scores, the company provides free credit advice and credit
score comparisons to empower customers to more actively manage their credit and
financial health.
Co-Founder, Position: Kenneth Lin, CEO
Source:
https://www.crunchbase.com/organization/credit-karma
https://www.creditkarma.com/faq/howitworks
Credit Sesame

Ownership: Investus Capital Partners, Globespan Capital Partners, Menlo Ventures, IA
Capital Group, Syncona Partners, Grail Partners, Plug & Play Ventures, Grauer Brothers
Capital, Camp One Ventures
Headquarters: Mountain View, CA
Domain: http://www.creditsesame.com/credit-score-and-loans/
Company Description: Credit Sesame is a personal finance tool that enables individuals the
ability to check their credit score for free. The companys patent pending analytics engine
automatically reviews all of a clients debt such as mortgage, student loan and credit card,
and then gives advice on lending products that would save money on loans and credit
needs. The entire application is free.
Co-Founder, Position: Adrian Nazari, CEO
Source:
https://www.crunchbase.com/organization/credit-sesame
http://www.creditsesame.com/#how-it-works
August 2015
Digit

Ownership: Baseline Ventures, Google Ventures, General Catalyst Partners, Cooperative
Capital, Upside Partnership, Freestyle, nyca partners, Initialized Capital
Domain: https://www.digit.co/
Company Description: Digit provides software that automates saving. Digit works by
analyzing an individuals spending habits over a period of time, and then automatically
takes out small amounts over time when it recognizes there is a little extra. It then puts this
money aside in an FDIC-insured account which clients can track and, as needed, withdraw
money from on a phone. The entire process is free.
Co-Founder, Position: Ethan Bloch
Source:
https://www.crunchbase.com/organization/digit-4
https://www.linkedin.com/company/digit-co
DriveWealth

Ownership: Route 66 Ventures, Sena Partners, Neuberger Berman
Headquarters: Chatham, NJ
Domain:
https://www.drivewealth.com/
Company Description: DriveWealths Brokerage as a Service is a mobile investing platform
that allows investors from all over the world to invest in the U.S. stock market. The
company markets the brokerage as a service to financial institutions and companies alike in
a more B2B2C distribution model. With no account minimum and trades for $3 in the U.S.,
DriveWealth is attempting to make the markets more accessible. Currently, DriveWealth
has clients in more than 140 countries; it gives international access to U.S. listed equities,
ADRs and ETFs with trades in China as low as $4.99. The company is looking to expand
its product portfolio by introducing FX and futures trading to its platform as well as partial
share purchases in the near future.
Co-Founder, Position: Robert Cortright
Source:
https://drivewealth.com/features/
https://www.crunchbase.com/organization/drivewealth
August 2015
eToro

Ownership: Spark Capital, SBTY Venture Capital, CommerzVentures, Ping An, Cubit
Investments, BRM Capital, Venture 51, Social Leverage
Headquarters: Cyprus
Domain: http://www.etoro.com/
Company Description: eToro is a social trading and investment network that offers traders
easy access to the currency, commodity and equity markets all across the world. Through
the companys OpenBook and WebTrader platforms, traders can share information live
and capitalize on other traders ideas. In addition, the company offers Mobile trader apps
for Android, iPhone and Blackberry.
Co-Founder, Position: Yoni Assia
Source:
https://www.crunchbase.com/organization/etoro
Financial Guard

Ownership: Cherokee & Walker
Headquarters: Powell, OH
Domain: https://www.financialguard.com/
Company Description: Financial Guard is a robo-advisor that offers advice through
constructing a portfolio. Clients pay a flat fee (typically $149.95 annually) and receives
advice on holdings to buy and sell. Financial Guard bases its recommendations on a risk
profile, as well as the fees that would be paid by the investor. Clients also receive
recommendations based on performance and possible future performance. Clients receive a
grade for their current portfolio (based on classic school ratings of A, B, C, D, F), and then
get help tweaking the portfolio so as to increase the portfolio grade to an A. Every quarter,
clients receive an alert to rebalance if needed. Clients can keep tabs on performance over
time fairly easily with comparisons and easy-to-read visuals. A few factors that differentiate
Financial Guard from many other robo-advisors is its ability to manage both 401Ks and
IRAs, as well as its ability to place clients into both active and passive funds.
Co-Founder, Position: Kevin Pohmer, CEO
Source:
https://www.financialguard.com/
https://www.linkedin.com/company/financial-guard
https://www.crunchbase.com/organization/financial-guard
August 2015
FlexScore

Ownership: Private
Domain: https://www.flexscore.com/
Company Description: FlexScore gives investors financial clarity wrapped up in a single
score. The score to achieve is 1,000 to be considered financially independent. FlexScore
factors in assets, debt, investments, income and every other aspect of financial health. A
persons FlexScore is compared to your peers so investors can see where they land
compared to their counterparts. FlexScore's goal is to provide expert analysis to understand
how a clients future will be impacted by the decisions made today, as well as provide
advice on how to improve a FlexScore to 1,000. Flexscore makes money from referral
partners customers use to complete financial advice action items. As such, Flexscore does
not charge a monthly or annual fee.
Co-Founder, Position: Jeff Burrow, President and COO
Co-Founder, Position: Melroy Saldahna, CTO
Source:
https://www.crunchbase.com/organization/flexscore
https://www.crunchbase.com/organization/flexscore
https://www.flexscore.com/
FutureAdvisor

Ownership: Devonshire Investors, Sequoia Capital, Khosla Ventures, Y Combinator,
Canvas Venture Fund, Madison Angels, Great Oaks Venture Capital
Headquarters: 580 Market St, Suite 500, San Francisco, CA 94104
Domain: https://www.futureadvisor.com
Company Description: FutureAdvisor is an online investment advisor that automatically
manages investments by using MPT to build and maintain a portfolio to maximize return
based on certain levels of risk. For a retirement planning account, fees are 50 bps a year
whereas a college savings plan account is free, excluding trading commissions paid to a
broker. Members can open numerous types of investment accounts including Roth and
tradition IRAs, rollover accounts and SEP IRAs. However, FutureAdvisor works slightly
different than a traditional robo-advisor in that the service links up with current financial
accounts via Yodlee, and gives automated financial advice no matter where assets are
located. The company was founded in 2010 and is backed by a similar group of VCs that
backed PayPal. We believeFuture Advisor has $550M+ in assets.
Co-Founder, Position: Bo Lu, CEO
Co-Founder, Position: Jon Xu, CTO
Source:
https://www.crunchbase.com/organization/futureadvisor
https://www.linkedin.com/company/futureadvisor
https://www.futureadvisor.com/
August 2015
Hedgeable

Domain: http://www.rebalance-ira.com/
Company Description: Hedgeable differs from competitors mainly in its investment
strategy. Unlike robo-advisors that take a very passive approach to ETF investing,
Hedgeable believed that by providing hedge fund strategies to the masses it can provide the
highest quality product to clients. Although the framework of its methodology is rooted in
MPT, the company also asserts that by hedging downside risk while participating in market
upside, portfolio performance can be optimized. By pairing up with registered hedge funds
and charging 2.5% (not the more typical hedge fund structure of 2% of assets and 20% of
profits), Hedgeable provides advanced hedge fund investment strategies to mom and pop
investors.
Co-Founder, Position: Mike Kane, CEO
Co-Founder, Position: Matthew Kane
Source:
https://www.crunchbase.com/organization/hedgeable
http://www.hedgeable.com/about
HedgeCoVest

Ownership: Private
Headquarters: West Palm Beach, FL
Domain: https://www.hedgecovest.com/
Company Description: HedgeCoVest is online investing platform that relies on data from
hedge fund portfolio managers to replicate their strategies in a separately managed
portfolio. After clients sign up and link his/her brokerage accounts to HedgeCoVests
replicazor, they can choose different strategies and the replicazor automatically scales
and properly allocates the funds. HedgeCoVest is geared toward smaller retail investors as
the minimum is $30,000. The company currently charges 2.5% - paying 1.5% to hedge fund
partners and keeping the other 1%. This flat fee allows smaller retail investors/Registered
Investment Advisors (RIAs) to tap into the large alternative investments ecosystem without
having to pay the standard 2%+ 20% hedge fund fee structure. Within its first 30 days of
operation, HedgeCoVest raised ~$10M in assets.
Co-Founder, Position: Evan Rapoport
Source:
https://www.crunchbase.com/organization/hedgecovest
https://www.hedgecovest.com/how-hedgecovest-works
August 2015
Jemstep

Ownership: Calio Capital
Headquarters: Los Altos, CA
Domain: http://www.jemstep.com/
Company Description: Jemstep is an online investment advisor that uses patented
technology and provides investment advice relevant to the buying and selling of securities in
order to empower investors to take charge of their retirement planning.
Co-Founder, Position: Michael Blumenthal, Chairman
Co-Founder, Position: Kevin Cimring, CEO
Co-Founder, Position: Matthew Rennie, CTO
Source:
https://www.crunchbase.com/organization/jemstep
https://www.linkedin.com/company/jemstep-inc.
http://www.jemstep.com/#team
Kapitall

Ownership: Linden Venture Fund, Bendigo Partners, Strauss Zelnick and ES & Partner
Ventures
Domain: http://www.kapitall.com/
Company Description: Developed by a serial video game entrepreneur and a financial
technologist, Kapitall uses the gaming experience to break the established online trading
mold. Kapitall is an investing platform in which investors can learn about the market,
research stocks, share ideas and build brokerage portfolios. Commissions are as low as
$5/trade. The company also offers Kapitall Wire, a market insight newsletter that it tries to
keep free of financial jargon.
Co-Founder: Gaspard de Dreuzy
Co-Founder: Serge Kreiker
Source:
http://backstage.kapitall.com/team/
https://www.crunchbase.com/organization/kapitall
August 2015
Loyal3

Ownership: Private
Domain: https://www.loyal3.com/
Company Description: Loyal3 is a social technology platform that offers free trading for
individual investors in their favorite brands. On their platform, investors can invest in IPOs
and stocks with small amounts and absolutely no fees. This is possible through batch
trading which combines many small orders into buy and sell orders executed once or twice
daily. Investors have access to over 60 stocks in names such as Amazon, Apple, Best Buy,
and Facebook.
Position: Barry Schneider, Chairman, President, & CEO
Source:
https://www.loyal3.com/about-loyal3.html
https://www.crunchbase.com/organization/loyal3/people
Market Riders

Ownership: Private
Domain: http://www.marketriders.com/
Company Description: Market Riders is web-based investment management software that
uses Modern Portfolio Theory to advise subscribers in low-cost ETFs to reduce fees and
increase the effect of compounded interest. Their subscribers have built (received
recommendation to construct portfolio through own brokerage) over 15,000 portfolios
valued over $5B. In addition, MarketRiders offers 24/7 portfolio management to ensure
clients assets are being monitored. They do not charge a AUM-based fee, but instead a
fixed monthly fee that can be as low as $12.50/month
Co-Founder, Position: Mitch Tuchman, CEO
Co-Founder, Position: Ryan Pfenninger, CTO
Co-Founder, Position: Stephen Beck
Source:
https://www.crunchbase.com/organization/marketriders
http://www.marketriders.com/pricing
August 2015
Motif Investing

Ownership: Foundation Capital, Goldman Sachs, Ignition Partners, Wicklow Capital,
Renren Inc, Norwest Venture Partners, Balderton Capital, JP Morgan Chase & Co.
Headquarters: San Mateo, CA
Domain: https://www.motifinvesting.com
Company Description: Motif Investing provides investors the opportunity to combine
modern portfolio theory and DIY investing for just $9.95 a motif. A motif is a weighted
portfolio of up to 30 stocks that reflect an idea or a concept. Investors can create their own
motif by easily adding stocks (up to 30), deleting stocks and changing each stocks weighting
in the portfolio or investors can buy motifs the company or other investors have already
created. Whether the motif is customized or previously created the trade will only cost
$9.95. Motif investing provides investors the opportunity to customize their own ETF for
low rates.
Co-Founder, Position: Hardeep Walia, CEO
Source:
https://www.linkedin.com/company/motif-investing
https://www.motifinvesting.com/
https://www.crunchbase.com/organization/motif-investing
Nutmeg

Ownership: Draper Associates, Schroders, Armada Investment Group, Pentech Ventures
Domain: http://www.nutmeg.com/
Company Description: Nutmeg is a UK based robo-advisor that specializes in managing
ISAs and pensions that charges between 30-100 bps per year to invest clients money in a
diverse range of low-cost ETFs. To get started, it takes 10 minutes to sign up and to set
your risk profile, money and lump sum contributions, and the purpose of the fund. They
will then present you with a portfolio of around 15 ETFs tailored to your individual
characteristics. In addition, they do not charge trading or set up fees, but will charge for
simple underlying portfolio costs, which average out to 19 bps per year.
Co-Founder, Position: Nick Hungerford, CEO
Position: Tracy Sambrook, CFO
Source:
https://www.crunchbase.com/organization/nutmeg
http://www.nutmeg.com/why-nutmeg
August 2015
Openfolio

Ownership: Private
Domain: https://www.openfolio.com/
Company Description: Openfolio is a free service that gives participants unique access to a
community of investors by allowing them to look into their investments to gauge how they
are doing relative to their peers and learn from the success of their peers. Portfolios are
represented in percentages, to show others what you are investing in, but never how much
you are investing.
Founder: Yinon Ravid
Founder: Hart Lambur
Source:
https://www.crunchbase.com/organization/openfolio
https://openfolio.com/about/
Personal Capital

Ownership: Jump Capital, Crosslink Capital, USAA, Cosair Capital, BBVA Ventures,
Venrock, Institutional Venture Partners
Domain: https://www.personalcapital.com
Company Description: Personal Capital is a Registered Investment Adviser (RIA) with the
SEC, and manages more than $1B in assets and has ~700k users. Personal Capital exists to
help you track and understand your financial accounts. After connecting your various
accounts, including your mortgage, credit cards, bank accounts, investment accounts, and
whatever else you may have, the free service will explain your situation and offer basic
investment guidance. If a user has $100,000 or more, Personal Capital offers professional
financial advice and the ability to work with a (real) financial advisor (who is trained and
credentialed). Annual fees are as follows: $0-$1M = 0.89%, $1M-$3M = 0.79%, $3M-$5M
= 0.69%, $5M-10M = 0.59% and greater than $10M = 0.49%.
Co-Founder, Position: Bill Harris
Source:
https://www.crunchbase.com/organization/personal-capital
https://www.linkedin.com/company/personal-capital
https://www.personalcapital.com/
August 2015
Propel(x)

Ownership: IDG Capital Partners, XhenFund, TEEC Angel Fund
Domain: https://www.propelx.com/
Company Description: Propel(x) is an online platform for investments in high technology
startups. They will seek out and do the research to find the most promising deep technology
startups and provide the research necessary for angel investors to make an informed
decision. They charge no fees for their services.
Co-Founder, Position: Swati Chaturvedi, CEO
Co-Founder, Position: Lisheng Wang. Investor Development
Source:
https://www.crunchbase.com/organization/propel-x
https://www.propelx.com/about
https://www.linkedin.com/company/propel-x-
Qapital

Ownership: Entre Capital, Northzone
Domain: https://www.qapital.com/
Company Description: Qapital is a personal finance app that lets clients set aside savings in
small amounts at a time, and earn 0.10% interest on the account. In addition, clients can set
goal-oriented saving such as Every time I order a beer save $2 towards my vacation. Once
clients have saved enough, cash goes out to his/her traditional account or they can get a
Qapital Visa Debit Card.
Founder, Position: George Friedman, CEO
Founder, Position: Erik Akterin, CTO
Source:
https://www.crunchbase.com/organization/qapital
https://www.qapital.com/how-it-works
August 2015
Rebalance IRA

Ownership: Private
Domain: http://www.rebalance-ira.com/
Company Description: Rebalance IRA manages retirement investment accounts through
asset diversification and Modern Portfolio Theory. A defining factor for Rebalance IRA is
their two-advisor system in which they pair clients up with a retirement investment advisor
and a retirement service representative who are able to walk them through all parts of the
process. Initially, their software and two-advisor system reviews clients current assets and
allocation strategies from a holistic perspective, and then identifies areas of improvement.
They then recommend a long term plan for clients portfolios which they can implement
with brokerages Schwab and Fidelity.
Co-Founder, Position: Mitch Tuchman (Also CEO of Market Riders)
Source:
http://www.rebalance-ira.com/
https://www.linkedin.com/company/rebalance-ira
SigFig

Ownership: Union Square Ventures, Bain Capital Ventures, DCM
Domain: https://www.sigfig.com/site/#/home
Company Description: SigFig is an investment management company that primarily invests
low-cost funds through Modern Portfolio Theory. They charge 0.25% billed monthly in
addition to the cost of investing in ETFs. They offer a portfolio tracker that generates a
free report on how your investments compare with the markets, recommendations on how
to improve performance, an asset manager that connects all your accounts and tailors a
portfolio of ETFs based on goals and risk profiles, and a diversified income investment
service that offers a portfolio designed to produce income for retirement.
Co-Founder, Position: Mike Sha, CEO
Source:
https://www.sigfig.com/site/#/home
https://www.crunchbase.com/organization/sigfig
August 2015
RobinHood

Ownership: Google Ventures, Andreessen Horowitz, Social Leverage, Ribbit Capital, New
Enterprise Associates, Index Ventures, Vaizra Investments, QueensBridge Venture Partners,
Snoop Dogg, Jared Leto, Rothenberg Ventures
Domain: http://www.robinhood.com/
Company Description: RobinHood is a new way to invest in the stock market. It is a free,
zero dollar ($0) commission brokerage that aims to enable the every-day individual to
participate in the market. They want to essentially, democratize the stock market by
dramatically changing the pricing model of brokerages. Additional features include smart
notifications that alert you when important events happen, and even real-time market data
streamed right to your mobile device.
Co-Founder, Position: Baiju Bhatt
Co-Founder, Position: Vladimir Tenev
Source:
https://www.robinhood.com/company/
https://www.linkedin.com/company/robinhood
https://www.crunchbase.com/organization/analyst
SmartAsset

Ownership: Quotidian Ventures, Javelin Venture Partners, SV Angel, Peterson Ventures, Y
Combinator, North Bridge Venture Partners & Growth Equity
Domain: https://smartasset.com/
Company Description: SmartAsset is a personal finance solution designed to bring full
transparency to the financial decision making process. Essentially, SmartAsset provides a
solution that aims to be the first point of information users utilize when faced with a large
financial decision. Beginning with home buying analysis, SmartAsset educates users on
items such as How large of a house can I afford? and the rent vs. buy decision. In
addition, their services expand into refinance, retirement, life insurance, and more. Their
site does not only provide data however, but rather has algorithms embedded to truly help
quantify important decisions across a range of sectors.
Co-Founder, Position: Michael Carvin, CEO
Co-Founder, Position: Philip Camilleri, CTO
Source:
https://smartasset.com/about
https://www.crunchbase.com/organization/smartasset
August 2015
TradeHero

Ownership: TNF Ventures, IPV Capital, Kleiner Perkins Caufield & Byers
Headquarters: Singapore
Domain: http://www.tradehero.mobi/
Company Description: TradeHero has developed a gamified virtual investment network
that uses real-world and real-time data to enable clients to invest or learn through the
power of crowdsourced intelligence and an intuitive trading platform. They make it easy to
learn by doing, sharing insights, and competing to win real money.
Founder, Position: Dinesh Bhatia, CEO
Founder, Position: Dominic Morris, CTO
Source:
http://en.tradehero.mobi/about
https://www.crunchbase.com/organization/tradehero
Wealthfront
Founded: December 1, 2011

Ownership: DAG Ventures, Greylock Partners, Index Ventures, Ribbit Capital, Andreessen
Horowitz, Dragoneer Investment Group, Spark Capital
Headquarters: 541 Cowper St., Palo Alto, CA 94301
Domain: https://www.wealthfront.com/
Company Description: Wealthfront is one of the largest fully automated investing services
with ~2.2B in AUM. Wealthfront provides investors with a 100% automated portfolio of
diversified, tax-efficient and continually rebalanced index funds at a cost of 25 bps per year,
no matter the account size. Wealthfront employs ETFs that track indices for 11 major asset
classes which are then used in portfolio creation. ETFs are chosen by their investment team
based on relative cost, tracking error, liquidity and lending policies.
Position: Andy Nash, President and CEO
Position: Andy Rachleff, Executive Chairman
Founder: Dan Carroll, Chief Strategy Officer
Source:
https://www.crunchbase.com/organization/wealthfront
https://www.linkedin.com/company/wealthfront
https://www.wealthfront.com
August 2015
Wealthminder

Ownership: Signatures Capital, Green Visor Capital
Headquarters: Reston, VA
Domain: https://www.wealthminder.com/
Company Description: Wealthminder is a personal finance company that provides a whitelabel SaaS to financial advisors that enables them to further enhance their services to
existing clients and to expand their total client base. This white-label offering specializes in
providing personal financial advice on retirement, 401ks, insurance, and other segments.
Wealthminder markets their Saas to financial advisors directly, and charges per client that
uses their software a flat fee of $75/per year or $10/month. Lastly, Wealthminder is looking
to develop a marketplace for FAs which is currently in development. Both of these segments
are not looking to disrupt the traditional FA business, but rather to act as a tool to enhance
it.
Co-Founder, CEO: Rich Ellinger
Source:
https://www.crunchbase.com/organization/wealthminder
https://www.linkedin.com/company/wealthminder
https://www.wealthminder.com/about-us/
WealthyX

Ownership: Private
Domain: http://www.wealthyx.com/
Company Description: WealthyX is a white-label robo-advisor platform that allows
companies the option to offer a robo-advisor without having to build one themselves.
WealthyX takes over the entire process: investment selection (ETFs), trading, and account
rebalancing. Marketing towards brokerages and Registered Investment Advisors, WealthyX
aims to be the back-end solution to the robo-advisory needs of their clients due the
changing demographics and the preferences of the millennial investor. They have partnered
up with a fellow FinTech company, Kapitall which is using WealthyXs platform solution.
Founder, CEO: Peter Yuen
Source:
http://www.wealthyx.com/features-1/
August 2015
WiseBanyan

Ownership: InnoSpring Seed Fund, VilCap Investments, Sorenson Legacy Foundation,
Galvanize Ventures, VegasTechFund
Domain: https://wisebanyan.com/
Company Description: WiseBanyan is the worlds first free financial advisor. Compared
to the typical AUM fees, WiseBanyan is trying to reinvent the industry by generating
revenue from a la cart products and services. At WiseBanyan clients have the freedom to
opt into paid services. Portfolios are still 100% automated and optimize performance
through rebalancing, reinvesting dividends and depositing, but you only pay for the
products you use.
Co-Founder, Position: Herbert Moore, CEO
Co-Founder, Position: Vicki Zhou
Source:
https://wisebanyan.com/
https://www.linkedin.com/company/wisebanyan
https://www.crunchbase.com/organization/wisebanyan
August 2015
#3: MONEY TRANSFER
With $583B in money transfers in 2014 estimated by the World Bank and only two major
players operating in a quasi-duopoly, this market is ripe for new players. In this section we
will look to answer the following questions.
1. What is a money transfer?
a. Domestic
b. International
2. What are the money transfer business models?
a. Online
b. Agency
c. Hybrid
3. How are startups competing?
4. Why are startups competing?
5. Who are these startups?
Why All The
Competition?
Of all the parts of the FinTech sector, one could argue that money transfer has seen some of
the most competition and disruption from startups. We believe that there are 5 major
reasons for this and we dig deeper into each of these later in this section:
1. Huge market
2. Slow moving, sizable and established players
3. Lack of price transparency
4. Changing global demographics
5. Scalability of mobile/internet strategy
What Is A Money
Transfer?
Dictionary.com defines a remittance (or money transfer) in two ways: 1) As the sending of
money, checks, etc. to a recipient at a distance or 2) Money or its equivalent sent from one
place to another. For our purposes, we bucket money transfers into two categories:
domestic and international:
Domestic: This is sending money within a countrys borders. The consumer is only
required to pay a transaction fee and no currency exchange is required.
International: This is sending money from one country to another. The consumer
pays the transaction fee but is also likely paying an additional amount related to
the spread between the FX rate provided to the consumer and the FX rate available
in currency markets. We highlight that several startups, most notably
TransferWise are competing specifically with the traditional money transfer
providers on the size of the FX spread. The traditional players rely on wider
spreads and the newer players tighter spreads (i.e. lower prices to consumers)
continue to add pressure to that model. Notably, much of TransferWises
marketing efforts are centered around the mid-market exchange rate that is
provided to customers and easily verifiable using 3rd party data sources.
Money Transfer
Business Models
Agency, Online And
Hybrid
In addition to the two types of money transfers, we categorize the types of money transfer
business models into 3 separate categories: online, agency based (brick and mortar) and
hybrid. We note that almost every money transfer player will have to some degree, a hybrid
August 2015
model. However, the traditional players tend to lean more agency based and the start-ups
tend to lean more online based.
Agent based: This was the original money transfer model. Under this model, a
customer could walk into the local send agent office/location carrying cash. The
agent would collect that cash from the customer and would send the money to a
different receiving agent office/location for pick-up by the receiver. Examples of
these are the traditional players such as Western Union (WU; covered by Mike
Grondahl), MoneyGram (MGI; covered by Mike Grondahl) and Ria/Euronet
Worldwide (EEFT, covered by Mike Grondahl).
Online based: As technology has improved and a younger global consumer base
has demanded more services available via the internet or smartphone, the money
transfer market has seen the arrival of largely online websites and mobile
platforms offering account to account transfers via internet/smart phone.
Examples of these would be XOOM, TransferWise, Venmo, PayPal and Azimo.
We note TransferWise, Venmo and PayPal remain fully online offering no options
for physical cash but XOOM partners with a variety of banks to offer cash pickup
(AXA Banque, Banque Chaix, Caisse Depargne, HSBC France among others) and
Azimo offers home delivery in the Philippines and a variety of pickup locations in
many of its receive destinations.
Hybrid: This is arguably the most common money transfer model today as we
have seen agent based models such as WU, MGI and Ria (EEFT) make significant
investments to each companys respective online/mobile platform. Similarly, we
have seen the 100% online players such as XOOM and Azimo begin to offer some
options for physical cash pick-up. We do note that most of the formerly 100%
online services still require either a bank account or a credit/debit card to fund the
actual transaction vs. allowing cash to be dropped off. This hybrid model is driven
off of increasing consumer demands for convenience (online/mobile requirements)
with strong demand for physical cash pickup options.
Lastly we highlight that the global money transfer market is dominated by WU and MGI
with what we believe to be 15% and 5% market share, respectively. In the U.S., where
Ria/MGI have largely cornered grocery stores, pharmacies, banks, and Walmart, the two
companies have an even more dominant share of the market representing 40%-50% in
total.
Startups Competing
On Price And FX
We believe that the startups see a large opportunity for revenues with a very inefficient
pricing mechanism. Domestically, where traditional players WU and MGI control ~40%50% of the total market weve historically seen tiered pricing. However, competition has
picked up extensively. Notably, WMTs white label product offered by Ria (launched May
2014) now provides domestic transfers up to $800 for just $9.50 and startups PayPal and
Venmo offer free transfers domestically. We highlight that prior to the WMT offering, an
$800 transfer through MGI/WU would have cost $62 and $75, respectively. We believe
WMT2WMT powered by Ria did approximately 4M transactions last quarter.
On an international transfer, the startups are competing with the traditional players both
on a transfer fee basis and the FX spread fee. Recall that on an international transfer, the
traditional players will earn a transfer fee and will also earn a spread between the FX rate
provided to the transfer customer versus the FX rate available in the currency markets.
Startups like TransferWise have been particularly aggressive advertising this inefficiency.
We believe that the startups are looking to create a market where consumers can make
August 2015
apples to apples comparisons easily as the winner with the lowest cost option taking the
majority of the transactions.
Summary Of Pricing
To study this FX spread, we looked at the U.S. to India, U.S. to China, U.S. to Philippines,
U.S. to Mexico and U.S. to France channels. We note that any variety of factors can impact
the cost of a transfer including principal (total amount), method of payment (credit, debit,
bank account, cash), method of send (online/telephone/agent) and method of pickup (cash,
bank account). As such, for each provider, we tried to collect prices for the widest range of
combinations possible. The results of this are presented in Exhibits 29, 30, 31 and 32 and we
point readers to the columns titled Transaction Fee, Implied FX Fee and Total Fee. Note,
for each of our channels we sorted the results by Total Fee which is highlighted in yellow.
Exhibit 28
HIGH LEVEL PRICING DATA

Cheapest Providers By Channel
Rank India
China
Philippines
Mexico
1 EEFT/RIA EEFT/RIA TransferWise
MGI
2 EEFT/RIA EEFT/RIA TransferWise EEFT/RIA
3
WU
WU
EEFT/RIA
EEFT/RIA
France
TransferWise
WeSwap
WeSwap
Cheapest Offering By Provider By Channel

USA to:
India
China
Philippines
Mexico
France
EEFT/RIA
$1.32
$5.00
$3.94
$10.04
$10.04
MGI
$6.70
$9.96
$8.01
$9.31
$9.31
Remit2India
$6.69 Not Available Not Available Not Available Not Available
Remitly
$2.94 Not Available
$8.39
Not Available Not Available
Small World Financial Services $13.37
$10.39
$12.09
$16.82
$16.82
TransferWise
$4.50 Not Available
$2.85
Not Available Not Available
WorldRemit
$8.16
$14.62
$10.26
$11.35
$11.35
WU
$1.62
$8.09
$10.39
$10.87
$10.87
XOOM
$6.15
$15.05
$14.06
$14.34
$14.34
Source: Piper Jaffray, Company websites
August 2015
U.S. to India: India is the largest money transfer market in the world and the increased level
of competition is evident. We note traditional players, EEFT and WU, are foregoing any
transfer fee and are only discounting the currency offered to the customer vs. the market by
0.44% and 0.54%, respectively. We note that some of this may be driven by the fact that
India is the largest send destination in the world with the World Bank anticipating sends of
$68.8B in 2015. Additionally, we believe that EEFT and WU are actively working to
pressure XOOM and TransferWise in this market.
Exhibit 29
PRICING US TO INDIA
Send Location
Receive Location
Principal:
USA
India
$300.00
Date Tested
EEFT/RIA
6/22/2015
EEFT/RIA
6/22/2015
WU
6/22/2015
WU
6/22/2015
WU
6/22/2015
Remitly
6/22/2015
Remitly
6/22/2015
TransferWise
6/22/2015
EEFT/RIA
6/22/2015
EEFT/RIA
6/22/2015
XOOM
6/22/2015
WU
6/22/2015
WU
6/22/2015
Remit2India
6/22/2015
MGI
6/22/2015
WorldRemit
6/22/2015
XOOM
6/22/2015
XOOM
6/22/2015
WU
6/22/2015
WU
6/22/2015
MGI
6/22/2015
MGI
6/22/2015
EEFT/RIA
6/22/2015
EEFT/RIA
6/22/2015
MGI
6/22/2015
Remitly
6/22/2015
Small World Financial Services 6/22/2015
WU
6/22/2015
WU
6/22/2015
WU
6/22/2015
EEFT/RIA
6/22/2015
EEFT/RIA
6/22/2015
Method of
Send
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Agent/Phone
Agent/Phone
Agent/Phone
Online
Online
Agent/Phone
Agent/Phone
Agent/Phone
Online
Online
Method of
Pickup
Bank Account
Cash
Bank Account
Bank Account
Bank Account
Bank Account
Bank Account
Bank Account
Bank Account
Cash
Bank Account
Cash
Cash
Bank Account
Cash
Bank Account
Bank Account
Bank Account
Cash
Cash
Cash
Cash
Bank Account
Cash
Cash
Bank Account
Cash
Cash
Cash
Cash
Bank Account
Cash
Method of
Payment
Days to Receive
Bank Account
4-5 Days
Bank Account
4-5 Days
Bank Account
3-4 Days
Credit
0-1 Days
Debit
0-1 Days
Bank Account
3 Days
Debit Card
In minutes
Bank Account
2-3 Days
Debit
Minutes
Debit
Minutes
Bank Account Minutes - 5 days
Bank Account
3-4 Days
WU Pay
3-4 Days
Bank Account
5-6 Days
Bank Account
Minutes
Bank Account
3-5 Days
Credit
Minutes
Debit
Minutes
Credit
Minutes
Debit
Minutes
Credit
Minutes
Debit
Minutes
Cash
Minutes
Cash
Minutes
Cash
Minutes
Credit Card
In minutes
Bank Account
3-5 Days
Bank Account
Minutes
Credit
Minutes
Debit
Minutes
Credit
Minutes
Credit
Minutes
Destination
Currency
Received
18,966.00
18,966.00
18,950.25
18,950.25
18,950.25
18,978.00
18,930.00
18,766.10
18,966.00
18,966.00
18,840.00
18,950.25
18,950.25
18,810.00
18,938.68
18,783.00
18,840.00
18,840.00
18,950.25
18,950.25
18,938.68
18,938.68
18,966.00
18,966.00
18,995.84
18,930.00
18,855.01
18,846.59
18,846.59
18,846.59
18,966.00
18,966.00
Transaction
Fee
$0.00
$0.00
$0.00
$0.00
$0.00
$1.99
$1.99
$4.50
$4.00
$4.00
$2.99
$5.00
$5.00
$3.00
$4.99
$3.99
$5.99
$5.99
$8.00
$8.00
$8.00
$8.00
$9.00
$9.00
$11.00
$10.99
$10.39
$11.00
$11.00
$11.00
$16.00
$16.00
FX given
63.2200
63.2200
63.1675
63.1675
63.1675
63.2600
63.1000
63.5063
63.2200
63.2200
62.8000
63.1675
63.1675
62.7000
63.1289
62.60845
62.8000
62.8000
63.1675
63.1675
63.1289
63.1289
63.2200
63.2200
63.3194
63.1000
62.8500
62.8219
62.8219
62.8219
63.2200
63.2200
FX in
Implied FX
Market Difference
Fee
Total Fee
63.5000 -0.44%
$1.32
$1.32
63.5000 -0.44%
$1.32
$1.32
63.5111 -0.54%
$1.62
$1.62
63.5111 -0.54%
$1.62
$1.62
63.5111 -0.54%
$1.62
$1.62
63.4615 -0.32%
$0.95
$2.94
63.4615 -0.57%
$1.71
$3.70
63.5063 0.00%
$0.00
$4.50
63.5000 -0.44%
$1.32
$5.32
63.5000 -0.44%
$1.32
$5.32
63.4685 -1.05%
$3.16
$6.15
63.5111 -0.54%
$1.62
$6.62
63.5111 -0.54%
$1.62
$6.62
63.4805 -1.23%
$3.69
$6.69
63.4905 -0.57%
$1.71
$6.70
63.4900 -1.39%
$4.17
$8.16
63.4685 -1.05%
$3.16
$9.15
63.4685 -1.05%
$3.16
$9.15
63.5111 -0.54%
$1.62
$9.62
63.5111 -0.54%
$1.62
$9.62
63.4905 -0.57%
$1.71
$9.71
63.4905 -0.57%
$1.71
$9.71
63.5000 -0.44%
$1.32 $10.32
63.5000 -0.44%
$1.32 $10.32
63.4745 -0.24%
$0.73 $11.73
63.4615 -0.57%
$1.71 $12.70
63.4800 -0.99%
$2.98 $13.37
63.5465 -1.14%
$3.42 $14.42
63.5465 -1.14%
$3.42 $14.42
63.5465 -1.14%
$3.42 $14.42
63.5000 -0.44%
$1.32 $17.32
63.5000 -0.44%
$1.32 $17.32
August 2015
U.S. to China: We note that several of our money transfer service providers could not
provide USD to CNY (Renminbi) transfers and instead only offered USD to USD or USD to
EUR options. For each provider, we recorded what was offered. EEFT was the cheapest
option for sending $300 USD but we note there was no CNY transfer option. For the CNY
option, WU was the next cheapest at $8.09. However, we do note that the FX given by
WUs website did not always closely match the FX trading in the market which may not
accurately represent the fee charged there. We believe that WU is making a fee but likely
sets its rates using the exchange rate provided by its bank partners in China and not easily
checkable to market rates. Notably, we do not see a significant amount of start-up players
in the market which we believe is due to the complicated banking and capital restrictions in
China.
Exhibit 30
PRICING U.S. TO CHINA

Send Location
Receive Location
Principal:
U.S.
China
$300.00
Date Tested
EEFT/RIA
7/15/2015
EEFT/RIA
7/15/2015
WU
7/15/2015
MGI
7/15/2015
EEFT/RIA
7/15/2015
EEFT/RIA
7/15/2015
MGI
7/15/2015
MGI
7/15/2015
MGI
7/15/2015
WU
7/16/2015
WU
7/16/2015
WU
7/16/2015
WorldRemit
7/15/2015
XOOM
7/15/2015
MGI
7/15/2015
WU
7/15/2015
WU
7/15/2015
MGI
7/15/2015
MGI
7/15/2015
MGI
7/15/2015
WU
7/15/2015
WU
7/15/2015
WU
7/15/2015
WU
7/15/2015
MGI
7/15/2015
MGI
7/15/2015
XOOM
7/15/2015
XOOM
7/15/2015
WU
7/15/2015
WU
7/15/2015
MGI
7/15/2015
MGI
7/15/2015
WU
7/15/2015
WU
7/15/2015
WU
7/16/2015
WU
7/16/2015
Method of
Send
Online
Online
Online
Online
Online
Online
Agent/Phone
Agent/Phone
Agent/Phone
Agent/Phone
Agent/Phone
Agent/Phone
Agent/Phone
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Agent/Phone
Agent/Phone
Method of
Pickup
Cash
Cash
Bank Account
Bank Account
Cash
Cash
Bank Account
Cash
Cash
Bank Account
Cash
Cash
Cash
Bank account
Bank Account
Bank Account
Bank Account
Cash
Cash
Bank Account
Bank Account
Cash
Cash
Cash
Bank Account
Bank Account
Bank Account
Bank Account
Bank Account
Bank Account
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Method of
Payment
Bank Account
Debit Card
Bank Account
Bank Account
Credit Card
Bank Account
Cash
Cash
Bank Account
Cash
Bank Account
Cash
Bank Account
Bank Account
Bank Account
Bank Account
Bank Account
WU Pay
Bank Account
Credit Card
Debit Card
Bank Account
WU Pay
Bank Account
Credit Card
Debit Card
Credit Card
Debit Card
Debit Card
Credit Card
Credit Card
Debit Card
Credit Card
Debit Card
Credit Card
Debit Card
Credit Card
Debit Card
Days to Receive
4-5 Days
Minutes
4-8 Days
1 Day
Minutes
4-5 Days
Minutes
Minutes
1 Day
Minutes
Minutes
Minutes
Minutes
1 Day
4-5 Days
1 Day
1 Day
3 Days
4 Days
Minutes
Minutes
1 Day
3 Days
4 Days
1-5 Days
1-5 Days
Minutes
Minutes
Minutes
Minutes
Minutes
Minutes
Minutes
Minutes
Minutes
Minutes
Minutes
Minutes
Destination
Currency
Received
$300.00
$300.00
CNY 1,862.58
CNY 1,856.13
$300.00
$300.00
$300.00
$300.00
$300.00
CNY 1,856.13
$300.00
$300.00
CNY 1,862.79
$300.00
$300.00
CNY 1,824.60
$300.00
CNY 1,862.58
CNY 1,862.58
CNY 1,856.13
CNY 1,856.13
$300.00
$300.00
$300.00
CNY 1,862.58
CNY 1,862.58
$300.00
$300.00
CNY 1,824.60
CNY 1,824.60
CNY 1,862.58
CNY 1,862.58
$300.00
$300.00
$300.00
$300.00
CNY 1,862.79
CNY 1,862.79
Transaction
Fee
$5.00
$8.00
$8.00
$8.88
$10.00
$10.39
$12.00
$12.00
$12.00
$12.00
$14.00
$14.00
$14.00
$10.99
$14.69
$8.88
$20.00
$20.00
$20.00
$20.00
$20.00
$22.00
$22.00
$22.00
$23.00
$23.00
$25.00
$25.00
$20.00
$20.00
$28.00
$28.00
$30.00
$30.00
$30.00
$30.00
$30.00
$30.00
FX in
Implied FX
FX given Market Difference
Fee
Total Fee
1.0000 1.0000
0.00%
$0.00
$5.00
1.0000 1.0000
0.00%
$0.00
$8.00
6.2086 6.2104
-0.03%
$0.09
$8.09
6.1871 6.2094
-0.36%
$1.08
$9.96
1.0000 1.0000
0.00%
$0.00
$10.00
1.0000 1.0000
0.00%
$0.00
$10.39
1.0000 1.0000
0.00%
$0.00
$12.00
1.0000 1.0000
0.00%
$0.00
$12.00
1.0000 1.0000
0.00%
$0.00
$12.00
6.1871 6.2094
-0.36%
$1.08
$13.08
1.0000 1.0000
0.00%
$0.00
$14.00
1.0000 1.0000
0.00%
$0.00
$14.00
6.2092 6.2100
-0.01%
$0.04
$14.04
6.1334 6.2086
-1.21%
$3.63
$14.62
1.0000 1.0000
0.00%
$0.00
$14.69
6.0820 6.2097
-2.06%
$6.17
$15.05
1.0000 1.0000
0.00%
$0.00
$20.00
6.2086 6.2104
-0.03%
$0.09
$20.09
6.2086 6.2104
-0.03%
$0.09
$20.09
6.1871 6.2094
-0.36%
$1.08
$21.08
6.1871 6.2094
-0.36%
$1.08
$21.08
1.0000 1.0000
0.00%
$0.00
$22.00
1.0000 1.0000
0.00%
$0.00
$22.00
1.0000 1.0000
0.00%
$0.00
$22.00
6.2086 6.2104
-0.03%
$0.09
$23.09
6.2086 6.2104
-0.03%
$0.09
$23.09
1.0000 1.0000
0.00%
$0.00
$25.00
1.0000 1.0000
0.00%
$0.00
$25.00
6.0820 6.2097
-2.06%
$6.17
$26.17
6.0820 6.2097
-2.06%
$6.17
$26.17
6.2086 6.2104
-0.03%
$0.09
$28.09
6.2086 6.2104
-0.03%
$0.09
$28.09
1.0000 1.0000
0.00%
$0.00
$30.00
1.0000 1.0000
0.00%
$0.00
$30.00
1.0000 1.0000
0.00%
$0.00
$30.00
1.0000 1.0000
0.00%
$0.00
$30.00
6.2092 6.2100
-0.01%
$0.04
$30.04
6.2092 6.2100
-0.01%
$0.04
$30.04
August 2015
U.S. to Philippines: In the Philippines, TransferWise offers two different transactions which
are the cheapest for the Philippines channel and earn no FX fee ($2.85, $3.00). EEFT is next
at $3.94, followed by MGI at $8.01, Remitly at $8.39, WorldRemit at $10.26 and WU at
$10.39.
Exhibit 31
PRICING U.S. TO PHILIPPINES

Send Location
Receive Location
Principal:
U.S.
Philippines
$300.00
Date Tested
TransferWise
7/1/2015
TransferWise
7/1/2015
EEFT/RIA
7/6/2015
EEFT/RIA
7/6/2015
EEFT/RIA
7/6/2015
EEFT/RIA
7/6/2015
EEFT/RIA
7/6/2015
EEFT/RIA
7/6/2015
EEFT/RIA
7/6/2015
EEFT/RIA
7/6/2015
EEFT/RIA
7/6/2015
MGI
7/6/2015
Remitly
7/1/2015
MGI
7/6/2015
WorldRemit
7/1/2015
WorldRemit
7/1/2015
WorldRemit
7/1/2015
WorldRemit
7/1/2015
WU
7/1/2015
WU
7/1/2015
MGI
7/6/2015
MGI
7/6/2015
MGI
7/6/2015
MGI
7/6/2015
Small World Financial Services
7/6/2015
7/6/2015
7/6/2015
Remitly
7/1/2015
Remitly
7/1/2015
WU
7/1/2015
WU
7/1/2015
XOOM
7/1/2015
WU
7/1/2015
WU
7/1/2015
XOOM
7/1/2015
XOOM
7/1/2015
MGI
7/6/2015
MGI
7/6/2015
EEFT/RIA
7/6/2015
EEFT/RIA
7/6/2015
EEFT/RIA
7/6/2015
WU
7/1/2015
WU
7/1/2015
WU
7/1/2015
WU
7/1/2015
WU
7/16/2015
WU
7/16/2015
WU
7/16/2015
Method of
Send
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Agent/Phone
Agent/Phone
Agent/Phone
Agent/Phone
Agent/Phone
Online
Online
Online
Online
Agent/Phone
Agent/Phone
Agent/Phone
Method of
Pickup
Bank Account
Bank Account
Bank Account
Courier
Cash
Bank Account
Courier
Cash
Bank Account
Courier
Cash
Bank Account
Bank Account
Cash
Bank Account
Cash
Mobile Money
Door to Door
Bank Account
Bank Account
Cash
Cash
Bank Account
Bank Account
Bank Account
Courier
Cash
Bank Account
Bank Account
Cash
Cash
Bank Account
Bank Account
Bank Account
Bank Account
Bank Account
Cash
Bank Account
Bank Account
Courier
Cash
Cash
Cash
Mobile Wallet
Mobile Wallet
Bank Account
Cash
Mobile Wallet
Method of
Payment
Days to Receive
Bank Account
4-5 Days
Bank Account
2-3 Days
Bank Account
4-5 Days
Bank Account
4-5 Days
Bank Account
4-5 Days
Debit Card
Minutes
Debit Card
Minutes
Debit Card
Minutes
Credit Card
Minutes
Credit Card
Minutes
Credit Card
Minutes
Bank Account
Minutes
Bank Account
3 Days
Bank Account
Minutes
Bank Account
Minutes
Bank Account
Minutes
Bank Account
Minutes
Bank Account
1 Day
WU Pay
5 Days
Bank Account
6 Days
Debit Card
Minutes
Credit Card
Minutes
Debit Card
Minutes
Credit Card
Minutes
Bank Account
3-5 Days
Bank Account
3-5 Days
Bank Account
3-5 Days
Credit Card
Minutes
Debit Card
Minutes
WU Pay
3 Days
Bank Account
4 Days
Bank Account
3-5 Days
Credit Card
2 Days
Debit Card
2 Days
Credit Card
Minutes
Debit Card
Minutes
Cash
Minutes
Cash
Minutes
Cash
Minutes
Cash
2-3 Days
Cash
Minutes
Credit Card
Minutes
Debit Card
Minutes
Credit Card
Minutes
Debit Card
Minutes
Cash
2 Days
Cash
Minutes
Cash
Minutes
Destination
Currency
Transaction
Received
Fee
PHP 13,413.41
$2.85
PHP 13,413.41
$3.00
PHP 13,477.28
$3.00
PHP 13,477.28
$3.00
PHP 13,477.28
$3.00
PHP 13,477.28
$5.00
PHP 13,477.28
$5.00
PHP 13,477.28
$5.00
PHP 13,477.28
$6.00
PHP 13,477.28
$6.00
PHP 13,477.28
$6.00
PHP 13,158.85
$0.00
PHP 13,173.00
$0.00
PHP 13,253.52
$2.99
PHP 13,269.00
$3.99
PHP 13,269.00
$3.99
PHP 13,269.00
$3.99
PHP 13,269.00
$3.99
PHP 13,079.01
$0.00
PHP 13,079.01
$0.00
PHP 13,253.52
$6.00
PHP 13,253.52
$6.00
PHP 13,158.85
$4.00
PHP 13,158.85
$4.00
PHP 13,443.41
$10.39
PHP 13,443.41
$10.39
PHP 13,443.41
$10.39
PHP 13,173.00
$3.99
PHP 13,173.00
$3.99
PHP 13,079.01
$2.99
PHP 13,079.01
$2.99
PHP 13,143.00
$4.99
PHP 13,079.01
$4.00
PHP 13,079.01
$4.00
PHP 13,143.00
$5.99
PHP 13,143.00
$5.99
PHP 13,253.52
$9.99
PHP 13,253.52
$9.99
PHP 13,241.83
$12.00
PHP 13,241.83
$12.00
PHP 13,241.83
$12.00
PHP 13,079.01
$6.00
PHP 13,079.01
$6.00
PHP 13,079.01
$6.00
PHP 13,079.01
$6.00
PHP 13,125.57
$8.00
PHP 13,125.57
$10.00
PHP 13,125.57
$10.00
FX given
45.1630
45.1630
44.92425
44.92425
44.92425
44.92425
44.92425
44.92425
44.92425
44.92425
44.92425
43.8628
43.91
44.1784
44.2291
44.2291
44.2291
44.2291
43.5967
43.5967
44.1784
44.1784
43.8628
43.8628
44.8113
44.8113
44.8113
43.91
43.91
43.5967
43.5967
43.8100
43.5967
43.5967
43.8100
43.8100
44.1784
44.1784
44.47
44.47
44.47
43.5967
43.5967
43.5967
43.5967
43.7519
43.7519
43.7519
FX in
Implied FX
Market Difference
Fee
Total Fee
45.1630 0.00%
$0.00
$2.85
45.1630 0.00%
$0.00
$3.00
45.0660 -0.31%
$0.94
$3.94
45.0660 -0.31%
$0.94
$3.94
45.0660 -0.31%
$0.94
$3.94
45.0660 -0.31%
$0.94
$5.94
45.0660 -0.31%
$0.94
$5.94
45.0660 -0.31%
$0.94
$5.94
45.0660 -0.31%
$0.94
$6.94
45.0660 -0.31%
$0.94
$6.94
45.0660 -0.31%
$0.94
$6.94
45.0660 -2.67%
$8.01
$8.01
45.1735 -2.80%
$8.39
$8.39
45.0660 -1.97%
$5.91
$8.90
45.1735 -2.09%
$6.27 $10.26
45.1735 -2.09%
$6.27 $10.26
45.1735 -2.09%
$6.27 $10.26
45.1735 -2.09%
$6.27 $10.26
45.1605 -3.46%
$10.39 $10.39
45.1605 -3.46%
$10.39 $10.39
45.0660 -1.97%
$5.91 $11.91
45.0660 -1.97%
$5.91 $11.91
45.0660 -2.67%
$8.01 $12.01
45.0660 -2.67%
$8.01 $12.01
45.0660 -0.57%
$1.70 $12.09
45.0660 -0.57%
$1.70 $12.09
45.0660 -0.57%
$1.70 $12.09
45.1735 -2.80%
$8.39 $12.38
45.1735 -2.80%
$8.39 $12.38
45.1605 -3.46%
$10.39 $13.38
45.1605 -3.46%
$10.39 $13.38
45.1760 -3.02%
$9.07 $14.06
45.1605 -3.46%
$10.39 $14.39
45.1605 -3.46%
$10.39 $14.39
45.1760 -3.02%
$9.07 $15.06
45.1760 -3.02%
$9.07 $15.06
45.0660 -1.97%
$5.91 $15.90
45.0660 -1.97%
$5.91 $15.90
45.0660 -1.32%
$3.97 $15.97
45.0660 -1.32%
$3.97 $15.97
45.0660 -1.32%
$3.97 $15.97
45.1605 -3.46%
$10.39 $16.39
45.1605 -3.46%
$10.39 $16.39
45.1605 -3.46%
$10.39 $16.39
45.1605 -3.46%
$10.39 $16.39
45.2035 -3.21%
$9.63 $17.63
45.2035 -3.21%
$9.63 $19.63
45.2035 -3.21%
$9.63 $19.63
August 2015
U.S. to Mexico: EEFT, WU and MGI are the 3 cheapest service providers but we also note
that the service is not yet offered by TransferWise and we wonder if we are also seeing
some promotional pricing by the traditional players. We believe competition for this
channel will likely continue to pick up overtime.
Exhibit 32
PRICING U.S. TO MEXICO

Send Location
Receive Location
Principal:
U.S.
Mexico
$300.00
Date Tested
MGI
7/1/2015
EEFT/RIA
7/1/2015
EEFT/RIA
7/1/2015
MGI
7/1/2015
MGI
7/1/2015
MGI
7/1/2015
WU
7/1/2015
WU
7/1/2015
EEFT/RIA
7/1/2015
EEFT/RIA
7/1/2015
WorldRemit
7/1/2015
WorldRemit
7/1/2015
MGI
7/1/2015
MGI
7/1/2015
MGI
7/1/2015
WU
7/1/2015
WU
7/1/2015
EEFT/RIA
7/6/2015
EEFT/RIA
7/6/2015
WU
7/1/2015
WU
7/1/2015
WU
7/1/2015
WU
7/1/2015
EEFT/RIA
7/1/2015
EEFT/RIA
7/1/2015
XOOM
7/1/2015
WU
7/16/2015
WU
7/16/2015
MGI
7/1/2015
7/1/2015
7/1/2015
XOOM
7/1/2015
XOOM
7/1/2015
WU
7/16/2015
WU
7/16/2015
Method of
Send
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Agent/Phone
Online
Online
Agent/Phone
Agent/Phone
Online
Online
Online
Online
Online
Online
Online
Agent/Phone
Agent/Phone
Agent/Phone
Online
Online
Online
Online
Agent/Phone
Agent/Phone
Method of
Pickup
Cash
Bank Account
Cash
Cash
Cash
Bank Account
Bank Account
Bank Account
Bank Account
Cash
Bank Account
Cash
Bank Account
Bank Account
Bank Account
Cash
Cash
Bank Account
Cash
Cash
Cash
Bank Account
Bank Account
Bank Account
Cash
Bank Account
Cash
Bank Account
Cash
Cash
Bank Account
Bank Account
Bank Account
Cash
Cash
Method of
Payment
Days to Receive
Bank Account
Minutes
Bank Account
4 - 5 Days
Bank Account
4 - 5 Days
Credit Card
Minutes
Debit Card
Minutes
Bank Account
Minutes
WU Pay
5 Days
Bank Account
6 Days
Debit Card
Minutes
Debit Card
Minutes
Bank Account
3-5 Days
Bank Account
3-5 Days
Credit Card
Minutes
Debit Card
Minutes
Cash
Minutes
WU Pay
3 Days
Bank Account
4 Days
Cash
Minutes
Cash
Minutes
Credit Card
Minutes
Debit Card
Minutes
Credit Card
Next Day
Debit Card
Next Day
Credit Card
Minutes
Credit Card
Minutes
Bank Account Minutes - 5 days
Cash
Minutes
Cash
3 Days
Cash
Minutes
Bank Account
3-5 Days
Bank Account
3-5 Days
Credit Card
Minutes
Debit Card
Minutes
Credit Card
Minutes
Debit Card
Minutes
Destination
Currency
Received
MXN 4,652.35
MXN 4,632.00
MXN 4,632.00
MXN 4,652.35
MXN 4,652.35
MXN 4,633.50
MXN 4,609.89
MXN 4,609.89
MXN 4,632.00
MXN 4,632.00
MXN 4,624.01
MXN 4,624.01
MXN 4,633.50
MXN 4,633.50
MXN 4,628.78
MXN 4,609.89
MXN 4,609.89
MXN 4,686.00
MXN 4,686.00
MXN 4,609.89
MXN 4,609.89
MXN 4,609.89
MXN 4,609.89
MXN 4,632.00
MXN 4,632.00
MXN 4,590.00
MXN 4,617.57
MXN 4,617.57
MXN 4,628.78
MXN 4,636.97
MXN 4,636.97
MXN 4,590.00
MXN 4,590.00
MXN 4,617.57
MXN 4,617.57
Transaction
Fee
$4.00
$4.00
$4.00
$5.00
$5.00
$4.00
$2.99
$2.99
$5.00
$5.00
$3.99
$3.99
$5.00
$5.00
$5.00
$4.00
$4.00
$10.00
$10.00
$4.99
$4.99
$4.99
$4.99
$7.00
$7.00
$4.99
$6.99
$8.00
$9.99
$10.39
$10.39
$8.99
$8.99
$21.00
$21.00
FX given
15.5078
15.4400
15.4400
15.5078
15.5078
15.4449
15.3663
15.3663
15.4400
15.4400
15.41337
15.41337
15.4449
15.4449
15.4292
15.3663
15.3663
15.6200
15.6200
15.3663
15.3663
15.3663
15.3663
15.4400
15.4400
15.3000
15.3919
15.3919
15.4292
15.4565
15.4565
15.3000
15.3000
15.3919
15.3919
FX in
Implied FX
Market Difference
Fee
Total Fee
15.7872 -1.77%
$5.31
$9.31
15.7572 -2.01%
$6.04 $10.04
15.7572 -2.01%
$6.04 $10.04
15.7872 -1.77%
$5.31 $10.31
15.7872 -1.77%
$5.31 $10.31
15.7872 -2.17%
$6.50 $10.50
15.7808 -2.63%
$7.88 $10.87
15.7808 -2.63%
$7.88 $10.87
15.7572 -2.01%
$6.04 $11.04
15.7572 -2.01%
$6.04 $11.04
15.8010 -2.45%
$7.36 $11.35
15.8010 -2.45%
$7.36 $11.35
15.7872 -2.17%
$6.50 $11.50
15.7872 -2.17%
$6.50 $11.50
15.7789 -2.22%
$6.65 $11.65
15.7808 -2.63%
$7.88 $11.88
15.7808 -2.63%
$7.88 $11.88
15.7467 -0.80%
$2.41 $12.41
15.7467 -0.80%
$2.41 $12.41
15.7808 -2.63%
$7.88 $12.87
15.7808 -2.63%
$7.88 $12.87
15.7808 -2.63%
$7.88 $12.87
15.7808 -2.63%
$7.88 $12.87
15.7572 -2.01%
$6.04 $13.04
15.7572 -2.01%
$6.04 $13.04
15.7920 -3.12%
$9.35 $14.34
15.8065 -2.62%
$7.87 $14.86
15.8065 -2.62%
$7.87 $15.87
15.7789 -2.22%
$6.65 $16.64
15.7950 -2.14%
$6.43 $16.82
15.7950 -2.14%
$6.43 $16.82
15.7920 -3.12%
$9.35 $18.34
15.7920 -3.12%
$9.35 $18.34
15.8065 -2.62%
$7.87 $28.87
15.8065 -2.62%
$7.87 $28.87
August 2015
U.S. to France (Europe): In the U.S. to France, we note that startups TransferWise and
WorldRemit are the two cheapest options offering a $300 transfer for $3 and $6.21,
respectively. Notably, TransferWise, as advertised, does not charge any FX fee leaving only
a flat rate and WorldRemit only applied a 0.74% discount to the market exchange rate.
EEFT is very competitive at $8.65 charging a 1.22% FX discount and a $5 fee. The most
notable item in this channel is the distance with which traditional players WU and MGI
miss the market. From our findings, WUs cheapest offering was $20.17 while MGIs
cheapest offering was $24.73.
Exhibit 33
PRICING U.S. TO FRANCE

Send Location
Receive Location
Principal:
TransferWise
WeSwap
WeSwap
WeSwap
WorldRemit
WorldRemit
EEFT/RIA
EEFT/RIA
EEFT/RIA
EEFT/RIA
XOOM
EEFT/RIA
EEFT/RIA
PayPal
WU
Skrill
XOOM
XOOM
MGI
EEFT/RIA
EEFT/RIA
MGI
MGI
WU
WU
WU
WU
MGI
WU
WU
WU
USA
France
$300.00
Date Tested
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
6/22/2015
Method of
Send
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Online
Agent/Phone
Agent/Phone
Online
Online
Online
Online
Online
Online
Agent/Phone
Online
Online
Agent/Phone
Method of
Pickup
Bank Account
Swap Account
Swap Account
Swap Account
Bank Account
Bank Account
Cash
Bank Account
Cash
Bank Account
Bank Account
Cash
Bank Account
Bank Account
Bank Account
Bank Account
Bank Account
Bank Account
Bank Account
Cash
Bank Account
Cash
Cash
Cash
Cash
Bank Account
Cash
Bank Account
Cash
Cash
Cash
Cash
Method of
Payment
Bank Account
Swap Account
Swap Account
Swap Account
Bank Account
Credit Card
Bank Account
Bank Account
Debit
Debit
Bank Account
Credit
Credit
Bank Account
Bank Account
Bank Account
Bank Account
Credit
Debit
Bank Account
Cash Only
Cash Only
Credit
Debit
Bank Account
Credit
WU Pay
Debit
Cash
Credit
Debit
Cash
Time To Receive
2-3 Business Days
5 Days
3 Days
Minutes
1-3 Business Days
1-3 Business Days
3-5 days
3-5 days
Minutes
Minutes
1-2 Business Days
Minutes
Minutes
3-5 Business Days
Minutes
5 Days
Minutes
1-2 Business Days
1-2 Business Days
Minutes
Minutes
Minutes
Minutes
Minutes
4 Days
Next Day
3 Days
Next Day
Minutes
Minutes
Minutes
Minutes
Destination
Currency Transaction
FX in
Implied FX
Received
Fee
FX given Market Difference
Fee
Total Fee
261.52
$3.00
0.8805 0.8805
0.00%
$0.00
$3.00
264.15
$3.00
0.8805 0.8805
0.00%
$0.00
$3.00
264.15
$3.90
0.8805 0.8805
0.00%
$0.00
$3.90
264.15
$4.20
0.8805 0.8805
0.00%
$0.00
$4.20
262.05
$3.99
0.8735 0.8800
-0.74%
$2.22
$6.21
262.05
$3.99
0.8735 0.8800
-0.74%
$2.22
$6.21
260.82
$5.00
0.8694 0.8801
-1.22%
$3.65
$8.65
260.82
$5.00
0.8694 0.8801
-1.22%
$3.65
$8.65
260.82
$8.00
0.8694 0.8801
-1.22%
$3.65 $11.65
260.82
$8.00
0.8694 0.8801
-1.22%
$3.65 $11.65
257.94
$4.99
0.8598 0.8804
-2.34%
$7.02 $12.01
260.82
$10.00
0.8694 0.8801
-1.22%
$3.65 $13.65
260.82
$10.00
0.8694 0.8801
-1.22%
$3.65 $13.65
259.69
$10.39
0.8656 0.8816
-1.81%
$5.44 $15.83
260.79
$12.00
0.8693 0.8931
-2.66%
$7.99 $19.99
250.62
$5.00
0.8354 0.8799
-5.06%
$15.17 $20.17
255.05
$10.00
0.8502 0.8804
-3.43%
$10.30 $20.30
257.94
$15.99
0.8598 0.8804
-2.34%
$7.02 $23.01
257.94
$15.99
0.8598 0.8804
-2.34%
$7.02 $23.01
251.03
$10.00
0.8367 0.8799
-4.91%
$14.73 $24.73
260.55
$21.00
0.8685 0.8805
-1.36%
$4.09 $25.09
260.55
$21.00
0.8685 0.8805
-1.36%
$4.09 $25.09
251.03
$20.00
0.8367 0.8799
-4.91%
$14.73 $34.73
251.03
$20.00
0.8367 0.8799
-4.91%
$14.73 $34.73
250.62
$20.00
0.8354 0.8799
-5.06%
$15.17 $35.17
250.62
$20.00
0.8354 0.8799
-5.06%
$15.17 $35.17
250.62
$20.00
0.8354 0.8799
-5.06%
$15.17 $35.17
250.62
$20.00
0.8354 0.8799
-5.06%
$15.17 $35.17
248.39
$24.00
0.8279 0.8799
-5.91%
$17.73 $41.73
250.62
$27.00
0.8354 0.8799
-5.06%
$15.17 $42.17
250.62
$27.00
0.8354 0.8799
-5.06%
$15.17 $42.17
248.21
$24.00
0.8273 0.8809
-6.08%
$18.25 $42.25
Pricing Wrap-Up
Overtime, we believe that competition in all the channels will continue to pick up as
consumers continue to become more and more aware of pricing differentials due to the easy
ability to compare the various offerings. We estimate that the winner of this game will be
the money transfer company that can most effectively manage the staggering compliance
costs across the most efficient platform. We believe FX spreads will be the first casualty of
this battle followed by continued competition on the transaction fee. While the traditional
players carry sizeable economies of scale advantages right now, the startups have the
benefit of technology minded human capital and significant investment by venture capital
and private equity.
XOOM The First

Upstart To Go Public
And Get Taken Out
XOOM is a Silicon Valley based international money transfer company that was founded
in 2001 by Kevin Hartz (one of the original investors in PayPal). XOOM successfully raised
funds several times with the backing of Sequoia Capital, New Enterprise Associates, SVB
August 2015
Capital and Fidelity Ventures, among others, before going public 2/15/13. On 7/1/2015,
PayPal announced it would pay $25/share for XOOM a 32% premium over the 3 month
weighted average stock price, which put XOOMs enterprise value at $890M. XOOM
expands PayPals service into 37 additional channels, notably Mexico, India, the
Philippines, China and Brazil and offers a sizable cross-selling opportunity with PayPals
68M U.S. users. We believe this shows the trend towards investment in FinTech as well as
money transfer in particular. We highlight XOOM because we believe it showcases the
overall potential for at least some of the companies listed in this report. Recall, XOOM was
created to attack the heavily entrenched, incumbent players in the money transfer market,
such as MGI/WU and to a lesser extent EEFT. XOOMs original strategy was to offer a
more convenient way to transfer funds via online and mobile platforms. XOOM targeted
its products specifically at the immigrant community and offered several options for cash
delivery at significantly discounted prices to MGI/WU. Additionally XOOM leveraged its
online and mobile platforms to drive transactions which grew 27.8% and 50.9% for 2014
and 2013 respectively vs. MGI (+2%/13%), WU (+5.2%/4.9%) and EEFT (+38.6%, 14.7%;
WMT2WMT launch May 2014).
Alibaba Affiliate
Moves To P2P
Payments
On 7/8/2015, Ant Financial, an affiliate of Alibaba, announced that it was upgrading its
mobile wallet Alipay Wallet to include additional capabilities for money transfer. While
Alibaba is not a startup by any means, it is a massive company focused on the largest
country in the world, China, with its 1.3B people and 79% bank account penetration.
Additionally, we highlight that China is the #2 send destination in the world with ~$64B in
money transferred into China in 2014. We believe we will likely continue to see this type of
foray into money transfer by the established companies due to the size of the overall
market.
Internet Titans Make

Move Into Money
Transfer
Similar to the move made by Alibaba with its use of Ant Financial to enter the money
transfer market, we see similar trends developing here in the U.S. with names such as
Google, Facebook and Twitter looking to combine their already robust online platforms
with a money transfer offering. We believe that these social media/internet companies are
looking to leverage the fact that users are already active on the networking sites to
communicate and are simply adding money transfer as an additional value added service.
Google: Google now offers users the ability to send money via its g-mail service in
conjunction with its wallet offering. We highlight that all users are required to do is set up a
Google wallet account and he/she can then send money to anyone via attaching money to a
g-mail message. The receiving person is required to set up a Google Wallet account but
there is no fee. We note the service is currently only available in the U.S. but we anticipate
that as Google continues to refine the service it could expand internationally. We also
highlight that sending and requesting money from individuals is free.
Facebook: Facebook has entered the money transfer market by allowing users to
send/receive money directly through Facebook messaging. Notably, Facebooks offering is
very convenient as Facebook already has a very broad user base, many of which have
already loaded debit card information into the site in order to pay for things such as games.
Facebooks service is only available in the U.S. but we would not be surprised to see an
international offering as Facebook continues to refine the service.
Twitter: Twitter has also stepped into the world of money transfer. While Facebook and
Google are allowing users to send money similar to how the user would send a picture or a
file, Twitter is partnering with banks and enabling anyone with a twitter handle and a bank
account the ability to send money. The major difference between the services is that the
Twitter offering is public for your twitter followers to see, where the Google and Facebook
August 2015
options remain private and between the sender/receiver. While details are relatively sparse
on the total mechanics of the service, users direct message the bank providing the service
with a specifically formatted message. The bank then provides the sender with a pin
number which the sender provides to the recipient and the bank alternatively sends a tweet
to the recipient which allows the bank to collect the pin from the recipient as well as any
other necessary bank information. While there is no definitive list of partner banks that will
send money on twitter we note that BCPE bank in France and ICICI Bank in India are
involved.
EEFTs XE Strategy
EEFT recently announced the acquisition of XE. XE runs the websites XE.com (top 500
website globally) and x-rates.com which combined to provide for ~1.6B page views
annually across 200M annual unique users, of which, ~49% are looking to do a money
transfer transaction. We believe that EEFT plans to use HiFXs simple platform (~65% of
transactions do not require human interaction) to drive better conversion rates with the XE
user base. We highlight that management expects to grow revenues to $22M from $10M in
XEs second year of operations (assumes no benefit from better conversion). XEs 3rd party
vendor contract for money transfer expires in 12 months at which point we anticipate EEFT
will begin making changes to drive higher conversion.
Why All The Money

Transfer Startups?
Of all the parts of the FinTech sector, one could argue that money transfer has seen some of
the most competition and pressure from start-ups. We believe that there are 5 major reasons
for this:
1. Huge market
2. Slow moving, sizable and established players
3. Lack of price transparency
4. Changing global demographics
5. Scalability of mobile/internet strategy
1.) Huge Market Opportunity
The global money transfer market is vast. The World Bank estimates that the total
amount of money sent around the world in 2014 was $583B with projected growth
rates of 0.40%, 4.1% and 4.3% during 2015, 2016 and 2017, respectively. With
numbers this large, the companies operating in the industry only need to capture a
small percentage of this to generate relatively significant revenues. We note that World
Bank estimates the cost to remit $200 is ~7.7%. While this rate has been declining, it
still puts the total revenue opportunity at $45.1B, $46.9B and $49.0B, respectively for
2015, 2016 and 2017 using the World Banks projected remittance levels. We believe
that the startups like the odds of developing a platform that could stand to capture/take
away some of this pie from the established players which would be a meaningful (and
lucrative) win for the startup.
2.) Slow Moving, Sizable And Established Players
WU and MGI are perfect examples of the type of financial institutions that FinTech
companies want to compete against. We note WU/MGI dominate much of the
international market with 15% and 5%, respectively, and an even greater share in the
U.S. with ~40%-50% combined. We do note, the U.S. market share may have
decreased somewhat due to EEFTs launch of the white label product at WMT but we
believe it is relatively close. While we agree in part the traditional players hold
significant barriers to entry created by the regulatory environment and agent locations,
we wonder if technology and changing consumer demands (more mobile/less brick and
mortar) will erode the value of some of these prior advantages. Additionally, we do
August 2015
believe that the startups estimate there is potential for a new technology platform to
more efficiently create scale across the business. This new platform could potentially
provide for similar bottom line results despite a lower potential fee environment.
Lastly, we estimate that the human capital and relatively entrepreneurial nature of
these small start-ups may provide a competitive advantage due to the rapidly changing
technology surrounding the service.
3.) Lack Of Price Transparency
Throughout its history, the proliferation of the internet has made it easier to find deals
on everything. However, due to the quasi-duopolies in the money transfer market
created by WU/MGI and the slow moving banks, this shift has yet to fully develop in
the money transfer market. Specifically, we highlight the tiered pricing structure seen
within the traditional players transaction fee and the FX spread on international
transfers. We believe that the startups are entering the market to compete specifically
on transparency of pricing. TransferWise is one of the most aggressive showing a low
transaction fee (based on size of send) with no FX bid offer spread being earned.
TransferWise also shows the consumer the FX rate being applied to the transaction
which matches the pricing seen in foreign currency markets on data systems such as
FactSet. We note most of the traditional players exchange rates were significantly
lower than the exchange rates offered in the market. We believe the startups are
looking to take market share by offering a lower and more transparent fee structure
and driving lower total economics to take market share.
4.) Changing Global Demographics
The worlds population is young and massive. According to the U.S. Census Bureau,
approximately 50.2% of the global population is between the ages of new born and 30.
This represents 3.6B people who are likely very comfortable with technology, especially
if those cohort members were born in the developed world where mobile technology
has been relatively advanced for most of the individuals lives. In more simple terms,
there are about as many people in the world today under 30 as there were people from
any age range in 1970. As such, the potential market for money transfer companies is
massive.
Smartphone penetration continues within global population. A June 2014 study by
eMarketer estimated that by the end of 2015 there would be 2.04B smartphone users in
the world or 28% of the total population. We believe that as the phones continue to get
more and more connected overtime there will be overwhelming consumer demand for
the mobile platform. While WU, MGI and to some extent EEFT (Ria) have a bit of an
advantage due to scale in the agent model, we believe that the deck is more evenly
stacked as mobile continues to become more prevalent.
Internet penetration will continue to erode brick and mortar competitive advantage. As
weve already highlighted, the worlds population is young. We believe that this
population will grow up surrounded by technology and will be increasingly
comfortable interacting with a largely online world. We also highlight that as
technology continues to advance, we anticipate significant portions of the developing
world population to gain access to the online world. We note that according to the
World Bank, only 38 in 100 people in the World have internet access as of 2013. Using
the internet penetration rate applied to the corresponding population, we estimate that
there are 2.6B people in the top 10 most populated countries in the world who are not
internet users. We believe that this rising young cohort with expanding internet access
globally will continue to put further pressure on the traditional brick and mortar
model.
August 2015
Bank account penetration. Much of the new model of money transfer involves consumers
transferring money directly from one bank account to another. We believe that part of the
demographic tail wind that the start-ups are looking to exploit is the increasing penetration
of bank accounts into the global population. According to the World Bank, only 60.69% of
the population over the age of 15 is believed to have any type of account at a financial
institution as of 2014. Looking more specifically, if we apply the respective bank account
penetration rate to the corresponding populations of the top 10 countries, we believe there
remains 1.3B people yet to have a bank account in just those top 10 countries, let alone the
rest of the world. Again, this demographic tailwind fits nicely into the bank-to-bank
transfers being pursued by the start-ups.
Exhibit 34
INTERNET AND BANK ACCOUNT PENETRATION BY COUNTRY

Bank
Internet
Cellular
Account
Users
Subscription Penetrat
Population
Per 100 Unpenetrated s Per 100
ion
Unpenetrated
Country
2013
2013
2013
2014
China
1,357,380,000
45.8
735,699,960
88.7
63%
499,369,922
India
1,252,139,596
15.1
1,063,066,517
70.8
72%
347,383,217
United States
316,128,839
84.2
49,948,357
95.5
99%
3,379,259
Indonesia
249,865,631
15.8
210,336,888
125.4
53%
118,051,991
Brazil
200,361,925
51.6
96,975,172
135.3
49%
101,696,540
Pakistan
182,142,594
10.9
162,289,051
70.1
9%
166,285,007
Nigeria
173,615,345
38.0
107,641,514
73.3
3%
167,556,091
Bangladesh
156,594,962
6.5
146,416,289
74.4
82%
28,282,068
Russian Federation 143,499,861
61.4
55,390,946
152.8
61%
56,259,781
Japan
127,338,621
86.3
17,509,060
117.6
78%
27,573,956
Total
2,645,273,755
1,515,837,831
Source: Piper Jaffray, Company filings, World Bank, United Nations
5.) Scalability Of Mobile/Internet Strategy

As we have laid out above, the market is huge and there are a variety of positive factors
for fully online startup models. These items include increasing rates of internet usage,
further proliferation of smart cell phones and increasing access to bank accounts.
Under this scenario, the FinTech start-ups do not have to waste any effort or capital
building out a brick and mortar infrastructure and will focus on developing the best in
class online and mobile platform. While we do not want to undersell the difficulty of
this online/mobile platform development, we highlight that once the platform is built,
each additional transaction comes at a very high margin. The sheer size of this market
(even at a lower price point) makes the money transfer startup a potentially very
lucrative endeavor.
Enterprise Transfer
Offerings
In addition to the startup companies like TransferWise and Azimo, we also highlight that
more business focused money transfer organizations are starting as well. Specifically, we
highlight Currency Cloud which provides B2B transfer services (TransferWise is actually a
customer) via the cloud. They offer a variety of services to businesses to help manage
international payments and transfers. We also note that, EEFTs HiFX offers a similar
solution for businesses and high net worth clients that were looking to transfer larger $
amount transfers. We believe that there is likely a significant market for these types of
enterprise wide transfer platforms but we estimate that the level of technological disruption
is still below critical mass where the consumer side has already reached that point.
August 2015
Azimo

Ownership: e.ventures, Greycroft Partners, Frontier Investments Group, RI Digital
Ventures, Protean Risk, TA Ventures, KRW Schindler Private Ventures
Headquarters: London
Domain: https://azimo.com/en/
Company Description: Azimo is a 100% online money transfer company with over 193
send destinations. Azimo which allows customers to send money internationally via bank
account, 200K cash locations, home delivery and mobile wallets. Azimos strategy differs
slightly from TransferWise and some of the other online/mobile money transfer
competitors as its focus remains largely on lesser developed European countries versus bank
account to bank account transfers between more developed nations. We also note that
Azimo offers cash pickup options which differs from TransferWise which only offers bank
account transfers. We highlight the company raised $20M in a Series B issuance on June 15,
2015 which was funded by Frog Capital, MCI Investments, e.ventures, Greycroft Partners
and TA Ventures with a $100M valuation.
Co-Founder, Position: Michael Kent, CEO
Co-Founder, Position: Marek Wawro, CTO
Co-Founder, Position: Marta Krupinska, GM
Source:
https://azimo.com/en/about-us
https://www.crunchbase.com/organization/azimo/investors
Boom Financial

Ownership: Digicel, RRE Ventures
Headquarters: Palo Alto
Domain: http://useboom.com/us/en/
Company Description: Boom is a mobile platform with a brick and mortar option that
enables customers to transfer money, deposit checks and track purchases from their cell
phones from individual Boom accounts which are provided in conjunction with Booms
issuing partner Self Help Federal Credit Union. Boom allows customers to transfer money
within the U.S. amongst Boom account holders for free and also offers money transfer
services to Mexico and Haiti via Boom account or cash pickup for a tiered fee. We note
Boom also charges customers a variety of fees for having an account such as deposit fees,
ATM withdrawal, balance inquiry, international purchases, etc.
Founder, Position: Bill Barhydt, CEO
Source:
http://useboom.com/us/en/more/faq/
August 2015
PeerTransfer

Ownership: Spark Capital, Devonshire Investors, Bain Capital Ventures, Accel Partners,
QED Investors, Maveron, Kibo Ventures, Fundacion Jose Manuel Entrecanales, Boston
Seed Capital
Headquarters: Boston
Domain: https://www.peertransfer.com/
Company Description: PeerTransfer is a service that allows international students studying
in the U.S. to pay their tuition via a proprietary payments system. PeerTransfers target
market includes the ~750K students from over 200 countries attending school in the U.S.
The service is based on convenience, ease of use and security with partners such as Ellucian,
Nelnet Business Solutions, Oracle and Sallie Mae.
Founder: Iker Marcaide
CEO: Mike Massaro
Source:
https://www.peertransfer.com/management-team
https://www.crunchbase.com/organization/peertransfer
Remit2India
Founded: Unknown
Ownership: Privately held
Domain: http://www.remit2india.com/
Company Description: Online transfer company providing money transfer services from
several developed nations (U.S., U.K., Australia, Singapore, Canada, U.A.E., Germany,
Spain and two other European countries).
Source:
http://sendmoneytoindia.remit2india.com/usa-new-10paisaextra/index.asp?keyw=remit2india&gclid=CL2GuMSElcYCFYJEaQodwhUAQw
August 2015
Remitly

Ownership: Trilogy Partnership, Founders Co-op, Bezos Expeditions, Tomorrow Ventures
Headquarters: Seattle
Domain: https://www.remitly.com/
Company Description: Remitly is a U.S. based p2p transfer company operating in 45 states
with the ability to send money to India and the Philippines. We note that Remitlys strategy
has been to focus on the larger remittance markets and create a best in class product before
expanding to additional channels. This strategy is showcased by Remitlys extremely
smooth mobile app which allows sending money in under 5 minutes including download
times required to install the app. We highlight that customers are sending ~$300M annually
via the app and Remitly saw its customer base expand by 400% in 2014. Remitly charges
$0.00 for a basic transfer which takes 3 business days from a bank account or $3.99 for an
express transfer plus 3% on the amount transferred if using a credit/debit card. Lastly, we
note that after the XOOM acquisition Remitly is the only fully online, independent U.S.
money transfer company in operation currently.
Co-Founder, Position: Matt Oppenheimer, CEO
Co-Founder, Position: Josh Hug, Chief Product Officer
Co-Founder, Position: Shivaas Gulati, Engineer
Source:
https://www.remitly.com/home/the_team
https://www.crunchbase.com/organization/remitly
Regalii

Ownership: Capricorn Investment Group, Citizen.VC, Maverick Capital, Winklevoss
Capital among others
Headquarters: New York City
Domain: https://www.regalii.com
Company Description: Regalii is a startup focused on making remittances easier while
allowing the sender some level of control over how the money sent is spent. Regalii got its
start in the Dominican Republic where it set up agreements with various retailers whereby a
text from Regalii on a customers phone could be redeemed for a cash credit. This allowed
the sender to control how the money was being spent. From this point, Regalii developed
the ability for the sender to pay bills (such as utilities) electronically via its service. Regalii
believes that the international direct bill payment market is ~$1T internationally (vs. $583B
P2P remittance market). Regaliis platform processes thousands of daily payments across 8
countries with 37K partners.
CEO: Edrizio De La Cruz
COO: Juan Maldonado
Source:
https://www.regalii.com/company
https://www.crunchbase.com/organization/regalii
August 2015
Ripple Labs

Type:
Ownership: Andreessen Horowitz, Google Venture, IDG Capital Partners, Blockchain
Capital, RRE Ventures, Route 66 Ventures, Core Innovation Capital, Bitcoin Opportunity
Fund, China Rock Capital, AME Cloud Ventures, Seagate Technology, CME Group,
Venture 51, Camp One Ventures, Pantera Capital, Lightspeed Venture Partners, Vast
Ventures, FF Angel
Domain: https://www.ripplelabs.com/
Company Description: Ripple Labs has created Ripple Protocol, a decentralized and open
source global remittance network that enables free and instant transfers to merchants,
consumers, and developers in any currency including Bitcoin. The Ripple protocol is similar
to the HTTP and SMTP protocols which power websites and e-mails and allows gateways
across multiple networks to transfer funds. The result is essentially a decentralized database
showing all of the transactions in various currencies at very low transfer rates.
Founder: Chris Larsen
Source:
https://www.ripplelabs.com/
Skrill

Ownership: Acquired by Optimal Payments 3/23/15
Domain: https://www.skrill.com/en-us/about-us/
Company Description: Skrill is an online based payments and money transfer platform for
individuals and businesses. Skrill has 20M account holders and offers 41 settlement
currencies in 200 different countries. Skrill also has 100K merchants on its platform for
accepting payments.
CEO: David Sear
CFO: David Clarke
Source:
https://www.skrill.com/en-us/about-us/our-company/
https://www.crunchbase.com/organization/moneybookers
August 2015
Small World
Financial Services

Ownership: FF&P Private Equity, MMC Ventures
Headquarters: Madrid
Domain: http://www.smallworldfs.com/choice/usa/en-us
Small World Financial services is a money transfer and payments based business located in
Madrid, Spain. The company was founded in 2005 and offers clients several ways to
transfer and pick up money across international borders. The company offers 200K receive
locations and markets to competitive exchange rates.
Co-Founder, Position: Nick Day, Managing Director
Co-Founder, Position: Michael Kent
Co-Founder, Position: Frederick Knox
Co-Founder, Position: Kevin Neuschatz
Source:
http://www.smallworldfs.com/choice/usa/en-us
https://www.crunchbase.com/organization/small-world-financial-services-group
The Currency Cloud
Founded: January 2012

Ownership: Notion Capital, XAnge Private Equity, Silicon Valley Bank, Anthem Venture
Partners, Atlas Venture
Domain: https://www.currencycloud.com/
Company Description: Currency Cloud is a B2B platform for currency transactions which
processes ~$10B in international payments annually, has had over 150K unique end
customers use services, has over 125 platform customers and operates in 212 countries.
Currency Cloud offers monthly billing, mid-market FX rates and simplified fees. Fees
include a payment fee of $1.50 for a 1-3 business day transfer or a priority fee of $9.00 with
payments normally arriving in the same day. Currency Cloud also charges a 25 bps fee on
the transfer amount regardless of currency and destination. Customers include
Transferwise, MangoPay, XE, RM Capital and Centtrip, among others.
Founder, Position: Nigel Verdon, Chairman
CEO: Mike Laven
Source:
https://www.currencycloud.com/about/our-team
https://www.crunchbase.com/organization/the-currency-cloud
August 2015
Transferwise
Founded: January 2011

Ownership: Andreessen Horowitz, IA Ventures, Index Ventures, Valar, Virgin, Kima
Ventures, Seedcamp
Domain: www.transferwise.com
Company Description: TransferWise essentially is a currency broker that matches both
sides of a currency trade for a flat fee. We note that Transferwise co-founder Taavet
Hinrikus mentioned in a blog that TransferWise was transferring ~$778M a month
(~$9.3B) which rivals XOOM in total volume at ~$9B. In a simple example assume there is
a U.S. citizen living in France earning s and a French citizen living in the U.S. earning $s
that needs to send s back to family in France. TransferWises service connects these two
offsetting currency needs at the midmarket EUR/USD currency rate with the American
receiving the equivalent amount of $s in his U.S. domiciled account and the French citizen
receiving s in his/her French domiciled account. Transferwise does not actually accept any
of the cash and simply facilitates the transfer among the various accounts.
Co-Founder, Position: Kriso Krmann, CEO
Co-Founder, Position: Taavet Hinrikus, Executive Chairman
Source:
www.transferwise.com/about
Venmo

Ownership: Acquired by Braintree on August 16, 2012
Headquarters: New York City
Domain: https://venmo.com/
Company Description: Venmo is an online p2p transfer platform which allows users to
transfer money to other users via bank accounts and major debit cards for free (there is a
3% charge for credit cards). It is free to receive money on Venmo.
Co-Founder, Position: Andrew Kortina, CFO & Director
Co-Founder, Position: Iqram Magdon-Ismail, President
Source:
https://venmo.com/about/product/
https://venmo.com/team/
https://www.crunchbase.com/organization/venmo
August 2015
WeSwap

Ownership: EC1 Capital, IW Capital
Domain: https://www.weswap.com/en/
Company Description: WeSwap is an online currency transaction platform combined with
a prepaid MasterCard which enables users to change currency types with travelers with
offsetting currency needs for a 1.0%, 1.3% and 1.4% rate depending on speed of delivery of
the transfer. WeSwap focuses on travelers that have the need to swap into multiple currency
and simply provides the exchange for multiple travelers to connect thereby increasing the
chances for offsetting currency needs which eliminates middlemen.
Co-Founder, Position: Jared Jesner, CEO
Co-Founder, Position: David Hasenfeld, CFO
Source:
https://www.weswap.com/en/learn-more/
https://www.crunchbase.com/organization/weswap-com
WorldRemit

Ownership: Accel Partners, Technology Crossover Ventures
Domain: www.worldremit.com
Company Description: WorldRemit is a 100% online money transfer business that allows
users to send money from ~50 different countries into ~110 destination countries,
processing ~250K transactions a month. WorldRemit allows users to send money
internationally using a smartphone, tablet or computer and allows the users to send the
money directly to the recipients bank account, mobile wallets or for cash pickup.
WorldRemit remains very focused on sending money to developing world countries
including a focus on Africa. Notably, the company leverages mobile money services such as
M-Pesa which essentially turns a users mobile phone number into a bank account and
offers similar KYC checks. We note that there is a significantly higher penetration rate of
cell phones in the global population versus bank accounts which further expands
WorldRemits TAM. Additionally WorldRemit offers online mobile airtime popup with a
low and readily disclosed fee.
Founder, Position: Ismail Ahmed, CEO
Source:
www.worldremit.com/en/about-us/management-team
August 2015
# 4 : N E W P A YM E NT S I N N O V A T O R S
With nearly 150B electronic transactions facilitated globally by the three largest card
networks (Visa, MasterCard, American Express) in 2014, the payments and billing
technology industry is large and growing. In recent years, numerous new and innovative
business models have emerged in the payments space, largely targeting 1)
digital/ecommerce/mobile payments and 2) point-of-sale (POS) payment systems. Thus far,
most of the new payments entrants have bolted their technologies/business models onto the
existing payments ecosystem, expanding the reach of electronic payments to new merchants
in addition to increasing conversion rates by enhancing the consumer experience through
increased security and simplicity as well as added channels to reward customer loyalty.
Why Payments
Technology?
New entrants are aiming to simplify the complex world of payments for both the merchant
and the consumer by providing all-in-one solutions that enable various forms of payments
from NFC and EMV to debit, credit, and prepaid cards. Triggered by the adoption of new
payments technologies like NFC and EMV/chip security, coupled with a rapidly expanding
ecommerce business, the payments technology space is heating up. We note that there are
five major areas where new firms are aiming to prove innovative:
1.
Consumer simplicity: The demand for simplicity has increased as the technology
enabling it has improved over time. This is a key factor in determining the winners and
losers in payments over the next several years. Within the space, new firms are
competing not only on price, but on levels of simplicity and integration even down to
the number of clicks required to make a purchase. The winners will be the best at
implementing technology that increases the ease of doing business for both consumers
and merchants.
2.
Merchant conversion rates: Simplicity in payment is a key element in driving higher

conversion through an ecommerce platform. According to Klarna, the Swedish
ecommerce payment platform, 66% of laptop shoppers and 82% of smartphone
shoppers leave online shopping carts without checking out. According to a Fedex
report, 56% of internet retailers are aiming to improve poor shopping cart adoption
rates by simplifying the payment process. Internet retailers believe that increasing the
simplicity of payment is the most important factor in driving higher sales and better
conversion rates. The idea assumes that merchants will see more business and sales if
the steps for a consumer to finalize a purchase on the web are limited, frictionless and
simplified. As retailers are the companies who will choose to adopt these new emerging
technologies, this will prove to be an important growth barometer in the space.
3.
Transition toward mobility: According to Shopify (ticker: SHOP), the cloud-based

commerce platform, mobile commerce now accounts for over 50% of total ecommerce
traffic in 2014. This shift toward mobile commerce is also driving the evolution of the
traditional physical POS system to mobile and omnichannel platforms. This enables
retailers to move the physical point of sale away from the traditional countertop.
Innovators in the space must be able to equip retailers in their mobile business lines.
August 2015
How Do They Work?
4.
Heightened security: An increasingly important factor driving innovation in the

payment technology space is the need for secure transactions in our increasingly cashless economy. High profile data breaches have increased the demand and visibility of
security solutions. According to Lexis Nexis, merchants are losing approximately
$190B a year due to credit card fraud in the U.S. alone. With that many fraudulent
payment dollars on the line, the space is wide open for innovative startups that are able
to adapt to the constantly evolving payment security market. Startups that are able to
provide all-encompassing security solutions and remove the concern from a merchants
mind will prove to be successful.
5.
Loyalty: Consumer loyalty programs are playing an ever-increasing role in global

commerce and it isnt hard to image why. According to Connizant, a business
technology and consulting company, acquiring new customers can cost 5x more than
retaining existing customers. New payment channels will have to incorporate new and
innovative ways for the merchants to better understand their consumer by leveraging
the evolving ecosystems of mobile payments and big data analytics.
As this market is very fragmented and comprised of many niche startups, there is a large
variety of businesses and business models in operation today as well as a growing number
of new businesses currently being developed. We highlight below some of the new
payments entrants driving innovation in the digital/ecommerce/mobile payments and POS
payment systems. The company profiles of Boku, Dwolla, Klarna, and Square are used as
representatives of the broad payments industry across multiple geographies.
Direct Carrier Billing
Boku
What is Boku? Boku is a payments technology company which provides mobile-enhanced

ecommerce payments through direct carrier billing. Carrier billing allows individuals to buy
digital content by adding the cost of a purchase directly to their phone bill. Essentially,
Boku enables consumers to charge purchases from online, mobile-phone, smart TVs,
desktop, or gaming consoles directly onto their phone bill.
How does Boku work? When prompted for payment, the customer simply has to select the
Boku payment option, type in his/her phone number, and will receive an SMS message
confirming the transaction. The customer then responds with a y and the transaction is
completed. This is a safer payment method, as you are limiting only one transaction of your
actual credit card data to one single bill, and vastly simplifies the payment process. To use
Boku, merchants have to apply and sign on through Boku, and then users will be able to
choose that payment option when purchasing digital content although they are charged a
transaction size-based fee.
Key Benefits: There are 4 main benefits to using Boku: 1) Boku enables customers who do
not have credit cards to pay for purchases on any device, no bank accounts or registration
required 2) Boku removes user nervousness surrounding the sharing of card details online 3)
Boku is able to reach half of the worlds population via cell phones, which is way beyond
the traditional credit card base and 4) Bokus system simplifies the buying process, which in
turn increases merchant conversion rates.
Funding: Boku has risen over $70M from top VC funds such as Andreessen Horowitz,
Khosla Ventures, Index Ventures, and New Enterprise Associates among many more.
August 2015
Digital/Ecommerce/Mobile Payments Innovation

Dwolla
What is Dwolla? Dwolla is a free web-based software platform that enables users to send,
receive, and request funds from other users. Based in Iowa, the company has constructed its
own electronic payment network as an alternative to credit card networks and Automated
Clearing House (ACH) transfers. Essentially, they want to replace the credit card network
rails that power a majority of electronic payments by charging users a monthly fee of as low
as $25/month.
What are the advantages? There are two main advantages to Dwollas payments network
that separate it from its competitors. 1) Payments can be made instantaneously instead of
the 2-3 days or more that are associated with ACH. 2) Users avoid hefty fees charged by the
credit card companies, and instead pay only $0.25 per transaction, with payments under $10
being free. In fact, in Dwollas home state of Iowa, citizens can use Dwolla to pay taxes or
other fees online, which reduces costs from $5.45 to $0.40.
Challenges of taking on credit card networks and ACH payments: While taking on the
traditional payments ecosystem can be valuable to its users and all consumers, the value of
the underlying infrastructure and technology is as valuable as the number of users it has.
Credit card networks like Visa and MasterCard have spent many years and invested
significant capital in building their technology infrastructure and global network. For
Dwolla to succeed, it will need to build a scalable network and sign on enough users to
benefit from network effects.
Easy sign-on: Origninally, users had to sign on to Dwolla on the website by entering their
banking credentials and other personal information. However, Dwolla verifies users bank
or credit union accoutns using a third-party provider so that users dont even need to
provide routing or account numbers. Dwolla hopes this easy sign-on will help them gain
traction with users and continue to add value to its existing customer base.
What else can Dwolla do? Besides individual payments, Dwolla is also capable of
processing mass and recurring payments. These enable users and businesses alike to easily
collect or receive thousands of payments on an automated basis for events such as payroll
periods and subscriptions.
Who backs Dwolla? Dwolla has raised $30M from VC funds including Andreessen
Horowitz and Union Square Ventures among many others.
Klarna
What is Klarna? Klarna is a Swedish ecommerce payment platform provider that has raised
over $275M. Klarna offers merchants solutions that enable commerce on both desktop and
mobile devices. For merchants, it offers a vastly simplified and easy way to accept Visa,
MasterCard, Discover, and American Express.This catch-all business model makes it easier
for SMBs to get paid without having to set up and maintain multiple payment gateways
which facilitate the online transactions with the card networks. If the merchant selects
Klarna, merchants can allow Klarna to take care of the end-to-end payment process.
Offerings include one-touch buying for return customers, payment after receiving his/her
order, and increased security. A differentiating factor between Klarnas experience and
other streamlined checkout processes is that Klarna pays merchants first and takes on all
the risk of fraud and payment default themselves. Klarna takes care of the credit card
processing and verification process so that merchants dont have to in exchange for variable
setup and transaction fees.
August 2015
What is the process for a first time Klarna user? For customers, the experience starts when
they begin to checkout. If it is their first-time paying through Klarna, they will be prompted
to enter their name, email, and delivery address. They can then choose to pay after
receiving the order, or up to 14 days from the order date, and complete the process later.
When paying, customers are prompted to enter the credit or debit card number per usual
and the process is completed.
How big is Klarna? According to their website, Klarna serves more than 35M customers
and manages payments for 50k merchants, and processes more than 250k transactions per
day across 11 European countries.
Exhibit 35
KLARNA PURCHASE SCREEN
Source: Klarna, Piper Jaffray
Note on U.S. competitor Stripe: Stripe is as U.S. based company that provides a suite of
APIs that act as a payments gateway and make online payments easy for both the merchant
and the consumer. Klarna and Stripe will begin to compete for market share as Stripe has
recently announced an expansion into Northern Europe, which they believe will build on
their already large base in North America.
Similar to Klarna, Stripe wants to make the process as easy as possiblewhich means no
separate payment gateways that users have to navigate through. However, in addition to
the payments gateway that Stripe provides through their APIs, Stripe provides recurring
billing, data analytics, PCI compliant security, and the ability to integrate with everything
from email to merchants existing accounting systems. Stripe has been raising money and
expanding geographies into Europe, Australia and Japan and currently supports over 100
currencies, including Bitcoin. The competition between these two large and fast growing
companies will be a story to watch, as Stripe has received over $200M in funding and
backing from the likes of Elon Musk, Peter Theil, and Sequoia Capital.
August 2015
Point-of-Sale (POS) System Innovation:

Square
What is Square? Square is an electronic payments and point-of-sale company that has raised
nearly $600M since inception and enables small and medium sized businesses with the
ability to accept different forms of payment (credit, debit, etc.) in an efficient manner.
What are Squares products? Square offers merchants three products: a POS terminal stand,
a magstripe reader, and a contactless + chip card reader. The product that most are
familiar with is the magstripe reader, otherwise known as a Dongle, which attaches into the
headset jack of a merchants smartphone or tablet, and works with both iOS and Android
software. With the Dongle, Square is targetting micro-merchants such as food trucks that
need a way to accept mobile electronic payments. To begin using the Dongle, merchants
simply have to sign-up online or in-store and a dongle will be provided free of charge. After
signing up and receiving the reader, merchants need to download an app on the mobile
device that will be connected to the reader, which will manage and track payments and
inventory for the merchant. After proper installation and implementation, merchants can
easily swipe credit cards on the mobile Dongle accessory and can do business outside the
walls of a brick and mortar store with Square collecting a 2.75% fee of each transaction
which includes the credit card fee.
How is Square preparing for the EMV liability shift? With the October 1st deadline for the
EMV trasition looming, Square has released a complementary piece of hardware that
accepts both EMV and traditional cards, and is offereing it free to existing merchants or
merchants first implementing Squares technology. The new Dongle looks the same, is
compatible with the same devices, and accepts payments in the same way as the traditional
Dongle but can now accept EMV cards.
Exhibit 36
SQUARE PRODUCTS
Source: Square
August 2015
The Square Stand and contactless reader: Additionally, Squares two other products, the
POS stand and the contactless + chip reader are both designed to further allow the SMB
owner to accept any form of payment from any location. Priced at $99, the stand is just like
what it sounds, a POS hardware terminal enabling merchants to accept card payments,
send digital receipts, gather sales information and manage inventory. It transforms an iPad
(not included in the $99 price) into a POS system with a free app that runs the software.
The contactless + chip card reader (coming Fall 2015) is a free standing card reader that
accepts NFC and EMV payments. It wirelessly connects to a merchants iOS or Android
device, or Square Stand, and helps merchants prepare for both the October 1 switch to
EMV enabled cards and the increased technology requirements of accepting NFC payments
such as Apple Pay and Android Pay.
What are Squares services offerings? On top of their three main POS products, Square
offers a suite of solutions to complement the terminals. Free products include inventory
management, invoicing, data analytics, online store setup and a pre-ordering online system.
The rest come at an additional cost and include appointment scheduling, a CRM solution
and gift cards. These are all easily integrated through initial sign-up and improve the
overall payment and business software experience for merchants. Square products are easily
paired with applications such as QuickBooks and Bigcommerce which efficiently addresses
clients accounting and online store management needs.
What is Square Payroll? Square payroll is a payroll services solution for small businesses.
Fully integrated with their POS stand terminal, Square Payroll offers merchants digital
timecards for hourly staff as well as automatic salaried staff payroll. In addition to
employee payroll, it provides merchants with automated federal and state tax filing, and
easy employee onboarding that employees handle themselves. Priced at $20/month
+$5/month per employee paid, Square Payroll is a cost-effective solution for small
businesss payroll needs.
What is Square Cash? Square Cash is a payment enabling website and application that
allows individuals and businesses to send money through $Cashtags, which is a unique
identifier for an individual or business using Square Cash to other parties who are signed up
on the network. Users can send or accept payments via an app on their mobile device or on
their personalized Square Cash webpage. The service is 100% free when being used
between individuals, but costs 1.5% per transaction when used to accept payment for goods
and services for businesses.
Integrated business lines: When all business lines are combined, Square is an end-to-end
payment company that caters its services toward a wide-variety of SMBs, from entirely
mobile merchants who are best served by the card readers, to more traditional merchants
with permanent physical locations most likely to use the fully integrated Square Stand.
Square is the largest and most-well known startup in the POS terminal space, and has used
its size and reach to expand past the initial card reader into niche areas such as custom gift
cards issuance and an employee booking system for businesses. We note that although
Square is the biggest player in the space currently, competition is high with several different
technologies and business models attacking the same problem: inefficient payments.
Square files for IPO: It has been recently reported by the Wall Street Journal and other
media sources that Square has confidentially filed for an IPO under the JOBS Act. If this is
true, Square will be the latest FinTech startup to go public which is the ultimate goal for
many of these new and emerging companies.
August 2015
2Checkout

Type: Ecommerce
Ownership: Trident Capital, Chicago Growth Partners
Headquarters: Columbus, OH
Domain: https://www.2checkout.com/online-payment-processing
Company Description: 2Checkout is a global payment provider that makes it easy to accept
payments from anyone, anywhere. 2Checkout maximizes online sales conversions by giving
global buyers localized payment options. Trusted by over 50,000 merchants, 2Checkout
supports transactions in 196 countries through 8 payment methods, 26 currencies, and 15
languages, forming one of the leading processors of online transactions in the world. Their
full range of services includes global payments, hosted checkout, payment API, recurring
billing, fraud protection, and 2chekcout mobile.
CEO: Alan Homewood
CEO: Shawn Budde
Source:
https://www.crunchbase.com/organization/2checkout-com
https://www.2checkout.com/about
https://www.linkedin.com/company/2checkout.com
Adyen

Type: POS and Ecommerce
Ownership: Private
Headquarters: Amsterdam
Domain: https://www.adyen.com/home
Company Description: Adyen is a payments technology company which enables businesses
to accept payments on a single global platform in a variety of solutions, including physical
POS systems, tokenized mobile devices, and one-click ecommerce pages. They process
over 250 payment methods in around 200 currencies. They currently serve businesses such
as Facebook, Airbnb, Spotify, and Groupon.
President & CEO: Pieter van der Does
CTO: Arnout Schuijff
Source:
https://www.adyen.com/home
https://www.linkedin.com/company/adyen
https://www.crunchbase.com/organization/adyen
August 2015
Apriva

Type: POS
Ownership: Private
Headquarters: Scottsdale, AZ
Domain: http://www.apriva.com/
Company Description: Apriva is a wireless payment processing and secure mobile
communications company. Their solutions incorporate a variety of hardware, software,
network infrastructure, payment processors, financial institutions, and management tools
to offer a full suite of POS products. They also offer a suite of information security systems
designed to enable government agencies and companies alike to protect sensitive
information through the communication process.
CEO: Christopher Spinella
Chief Architect: Mike Klingen
Source:
http://www.apriva.com/pos
https://www.linkedin.com/company/apriva
https://www.crunchbase.com/organization/apriva
Bigcommerce

Type: Ecommerce
Ownership: American Express, Revolution LLC, General Catalyst Partners, Telstra
Ventures, SoftBank Capital
Domain: https://www.bigcommerce.com/
Company Description: Bigcommerce provides ecommerce software for online businesses.
Their solutions enable retailers to launch and maintain an ecommerce store platform
through hosted tools such as website, domain name, shopping cart, mobile-optimized store,
marketing tools, and a payment gateway.
CEO: Brent Bellm
CFO: Robert Alvarez
Source:
https://www.linkedin.com/company/bigcommerce
https://www.crunchbase.com/organization/bigcommerce
https://www.bigcommerce.com/features/
August 2015
Bill.com

Type: Billing
Ownership: Shasta Ventures, First Round, Fifth Third Bancorp, West Capital Advisors,
Commerce Ventures, American Express Ventures, Napier Park Global Capital Burch
Creative Capital, Bank of America, Silicon Valley bank
Domain: https://www.bill.com
Company Description: Bill.com is an on-demand A/P and A/R solution provider. They can
enable users to receiver, route, and pay invoices electronically. They currently process $19B
in payments per year by securely automating their back-office management.
CEO: Rene Lacerte
Source:
https://www.crunchbase.com/organization/bill-com
https://www.linkedin.com/company/bill.com
BillTrust

Type: Billing
Ownership: Bain Capital Ventures, Goldman Sachs, Edison Partners
Headquarters: Trenton, NJ
Domain: http://www.billtrust.com/
Company Description: BillTrust is a company that provides automated invoice to cash
solutions in the areas of invoice presentation, online payment portals, and cash
applications. BillTrust offers B2B and B2C solutions that are scalable for growing
businesses.
CEO: Flint Lane
Source:
https://www.crunchbase.com/organization/billtrust
http://www.billtrust.com/billing-solutions/
August 2015
Bindo

Type: Ecommerce
Ownership: Vayner/RSE, Metamorphic Ventures, East Ventures, Gary Vaynerchuk
Domain: https://www.bindo.com/
Company Description: Bindo is a mobile marketplace created so consumers can search local
stores inventory and order from their device directly. It works by having retailers sign on
board and Bindo supplies them with a variety of solutions including a POS register,
customer management, online storefront, data analytics, and client support. It offers easy
integration with services such as QuickBooks, Powa, and Xero to complement their full
suite of solutions.
Experience: Brad Lauster
Product and Engineering: Jason Ngan
Source:
https://www.crunchbase.com/organization/bindo
https://www.bindopos.com/
Bluefin Payment
Systems

Type: POS
Ownership: Goldman Sachs Specialty Lending Group
Domain: https://www.bluefin.com/
Company Description: Bluefin Payment Systems is a provider of secure payment technology
for independent software vendors and businesses specializing in technologies that safeguard
consumer data and risk. They offer integrated payment processing, mPOS, and omnichannel retail payments all protected by their point-to-point encryption. Bluefin currently
serves ~15,000 merchants.
CEO: John Perry
CFO: Michael Brady
Source:
https://www.crunchbase.com/organization/bluefin-payment-systems
https://www.linkedin.com/company/bluefin-payment-systems
August 2015
BlueSnap

Type: Ecommerce
Ownership: Great Hill Partners, Parthenon Capital Partners
Headquarters: Waltham, MA
Domain: http://home.bluesnap.com/ecommerce/
Company Description: BlueSnap is a payment gateway provider that enables ecommerce
merchants to grow their business internationally. They provide flexible integration options,
intelligent payment routing in addition to fraud prevention, subscription billing, and an
ecommerce tool. Their services are available to shoppers in 180 currencies.
CEO: Ralph Dangelmaier
CFO: Bill Sobo
Source:
https://www.crunchbase.com/organization/bluesnap
https://www.linkedin.com/company/bluesnap
http://home.bluesnap.com/ecommerce/why-bluesnap
Boku

Type: Direct Carrier Billing
Ownership: Andreessen Horowitz, Benchmark, DAG Ventures, Index Ventures, Khosla
Ventures, NEA
Domain: http://www.boku.com/about/
Company Description: Boku is a global payments network that operates through mobile
phone carrier billing. Essentially, Boku pairs with your service provider and the merchant,
and acts as the intermediary between the two to facilitate the payment. An easy example is
if a user wants to make an in-game purchase, they use their 1-tap payment technology that
charges their mobile phone bill instead of directly taking card information. They currently
pair with ten large merchants such as Facebook, EA games, Spotify, and Sony.
CEO: Jon Prideaux
CFO: Stuart Neal
Source:
https://www.crunchbase.com/organization/boku
https://www.linkedin.com/company/boku-inc
http://www.boku.com/
August 2015
CardFlight

Type: POS
Ownership: Entrepreneurs Roundtable Accelerator, Apostolos Apostolakis, FF Venture
Capital, Plug & Play Ventures, Payment Ventures, Great Oaks Venture Capital
Domain: https://cardflight.com/
Company Description: Cardlight offers applications that allow app developers to take
payments via iOS and Android apps. Essentially, their platform connects app developers
with payment processors using encrypted mag stripe reader and SDK/API. Currently, they
support payment processors FirstData, Chase, Global Payments, Braintree, Stripe, Vantiv,
Wordlpay, and TSYS.
CEO: Derek Webster
Source:
https://www.crunchbase.com/organization/cardflight
https://www.linkedin.com/company/cardflight
https://cardflight.com/
CashStar

Type: POS
Ownership: Intel Capital, FTV Ventures, Allen & Company, North Hill Ventures, Passport
Capital
Headquarters: Portland, ME
Domain: http://www.cashstar.com/
Company Description: CashStar has designed the first digital gifting and incentives
platform for business to instantly send consumers gift cards. They aim to help brands and
financial institutions retain clients by integrating marketing and reward programs.
CEO: Ben Kaplan
Source:
https://www.crunchbase.com/organization/cashstar
August 2015
Datacap Systems

Type: POS
Ownership: Private
Headquarters: Chalfont, PA
Domain: http://datacapsystems.com/
Company Description: Datacap Systems develops and markets integrated payment
solutions interfaces that enable cash register and business system providers to add electronic
payments to their systems. Its products include hardware and software-based payment
interfaces, software integration utilities, multi-merchant Windows client/server
applications, communications hardware and software, and Web accessible product
configuration servers. The company also offers integrated payment solutions for embedded
systems and PC based systems. Its products are interfaced to various business applications
in retail, restaurant, mail/telephone order, Internet, hospitality, quick service, retail
petroleum, parking, car wash, vending, auto rental, convenience, medical, and government
applications. The company offers its products through a network of dealers and systems
integrators.
President & CEO: Terry Zeigler
Source:
http://datacapsystems.com/
http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=38245742
Dwolla

Type: Network
Ownership: Village Ventures, Andreessen Horowitz, Union Square Ventures, CME Group,
SeventySix Capital, Paige Craig, Thrive Capital
Headquarters: Des Moines, IA
Domain: https://www.dwolla.com/
Company Description: Dwolla is a Des Moines, IA based start-up focused on providing an
alternative electronic payments network platform to enable business to accept and send
money transfers. Dwolla offers an open API that allows developers on the customer side to
better plug into Dwollas network which drives smoother interaction between the customer
and Dwollas platform as well as more robust potential uses. Dwolla also offers services to
consumers in the U.S. to transfer funds amongst friends for any variety of reasons.
CEO: Ben Milne
Source:
https://www.dwolla.com/about
https://www.crunchbase.com/organization/dwolla
August 2015
Edo Interactive

Type: Ecommerce
Ownership: Baird Capital, Nashville Capital Network, FCA Venture Partners, First Avenue
Partners, VantagePoint Capital, Correlation Ventures, Clayton Associates, Claritas Capital
Headquarters: Nashville, TN
Domain: http://www.edointeractive.com/
Company Description: EDO has created an online marketplace for retailers to post coupons
for redemption either online or in-store. Unlike the regular coupons you need to have
printed out with you, these coupons are automatically redeemable through your credit or
debit card, so all the buyer has to do is swipe the card. For the merchant, there are no setup
feeds, production costs, or distribution coststhey want to help drive sales. Furthermore,
because all of these coupons are digital, the data behind them unveils consumer spending
trends and that EDO delivers through scalable data-driven insight.
CEO: Souheil Badran
Founder and Vice Chairman: Ed Braswell
Source:
https://www.crunchbase.com/organization/edo-interactive
http://www.edointeractive.com/card-linked-offers/
Fortumo

Type: Direct Carrier Billings
Ownership: Intel Capital, Greycroft Partners
Headquarters: Estonia
Domain: https://fortumo.com/
Company Description: Fortumo is a payment processing company that leverages direct
carrier billing to enable payments from web, mobile, games, and in-app payments. Fortumo
currently accepts payments from users in every continent expect Antarctica, and charges a
% of the transaction.
CEO: Martin Koppel
Source:
https://fortumo.com/services/start
https://www.crunchbase.com/organization/fortumo#x
August 2015
GoCardless

Type: Billing
Ownership: Accel Partners, Balderton Capital, Y Combinator, SV Angel, Passion Capital,
ACE & Company, Start Fund
Domain: https://www.gocardless.com/
Company Description: GoCardless is an innovative payments service that allows businesses
to easily set up their payment network through direct debit. GoCardless provides an easyto-use dashboard where you can manage your payments, either by sending a link to the
payment interface or by embedding a button on your website. As these payments are made
via interbank direct debit, it is a lot cheaper and GoCardless charges 1% (up to a max of
2). In addition to their dashboard, companies can accept payments through some
accounting software providers that they have partnered with such as Xero and Sage. They
also offer an API for businesses that want to integrate GoCardless into their own website.
Founder: Hiroki Takeuchi
Source:
https://www.crunchbase.com/organization/gocardless
inDinero

Type: Billing
Ownership: 500 Startups, Base Ventures, Y Ventures, Camp One Ventures, Y Combinator,
Saas Capital, Streamlined Ventures, Coyote Ridge Ventures, Benjamin Ling
Domain: https://www.indinero.com/
Company Description: inDinero is a billing technology platform company that takes care of
accounting, tax and payroll needs for small business and larger enterprises. inDinero aims
to reinvent small business accounting, and provides a flat monthly pricing model and easy
to use software. Essentially, inDinero creates software to help small businesses track and
manage their finances.
CEO and Product Architect: Jessica Mah
CTO: Andy Su, CTO
Source:
https://www.crunchbase.com/organization/indinero
https://www.indinero.com/early-stage
August 2015
Intubus

Type: Ecommerce
Ownership: Private
Domain: https://www.intubus.com/
Company Description: Intubus is a digital products centered marketplace that aims to help
creators and brands effectively distribute/sell their digital products and share knowledge
with the ability to monetize their media on the marketplace.
President: Vitallii Soldatenko
Source:
https://www.intubus.com/?c=comm&a=info3&smd=about
https://www.linkedin.com/company/intubus
https://www.crunchbase.com/organization/intubus-inc
iZettle

Type: POS
Ownership: American Express, MasterCard, Zouk Capital, Intel Capital, Greylock
Partners, Santander Innoventures, Northzone, Dawn Capital, Creandum, Index Ventures,
Hasso Plattner Ventures
Headquarters: Stockholm
Domain: https://www.izettle.com/
Company Description: iZettle is a mobile payments provider that operates in Europe and
Latin America. They offer a POS solution that transforms smartphones and tablets into
cash registers. In addition, they also provide a product library platform that makes it easy
to keep track of all your sales. They have recently launched a free of charge chip and pin
reader along with NFC enabled card reader.
CEO: Jacob De Geer
COO: Magnus Nilsson
Source:
https://www.crunchbase.com/organization/izettle
https://www.izettle.com/service
August 2015
Klarna

Type: Ecommerce
Ownership: Sequoia Capital, General Atlantic, Atomico, Institutional Venture Partners
Headquarters: Stockholm, Sweden
Domain: https://www.klarna.com/us
Company Description: Klarna is a European ecommerce payments services technology
company. They were built to address the problem of shoppers failing to check out on
ecommerce platforms, specifically mobile, even after their goods were already in the cart.
Their solution includes a smoother buyer interface on ecommerce and mobile platforms,
and a closed-end transaction process to ensure security. They have recently rolled out a new
wrinkle that lets the consumer pay after receiving the good, where they assume the
consumer risk instead of the merchant.
CEO: Sebastian Siemiatkowski
Deputy CEO: Niklas Adalberth
Source:
https://www.crunchbase.com/organization/klarna
https://www.klarna.com/us
https://www.linkedin.com/company/klarna-ab
Lightspeed

Type: POS
Ownership: Accel Partners, iNovia Capital
Domain: http://www.lightspeedpos.com/
Company Description: Lightspeed is a cloud-based POS system for small business operating
in the restaurant and retail businesses. The physical POS itself leverages the mobility of
tablets/laptops which enables smaller merchants to easily manage their POS needs from
everyday tools. In addition, the cloud-based model gives merchants the ability to access
inventory, track sales, store data analytics, and launch an ecommerce platform all for a flat
monthly fee. Lightspeed charges fees based on the size of business ranging from $76/month$222/month.
CEO: Dax Dasilva
Source:
https://www.crunchbase.com/organization/lightspeed-retail
http://www.lightspeedpos.com/about-lightspeed-pos/
August 2015
MineralTree

Type: Billing
Ownership: First Data Corporation, .406 Ventures, Fidelity Growth Partners
Headquarters: Cambridge, MA
Domain: https://www.mineraltree.com/
Company Description: MineralTree is a company that provides streamlined accounts
payable and payment solutions though an automated payment process designed to help
small and medium business increase efficiency within their operational performance. By
leveraging the most popular accounting systems (Intacct, Microsoft Dynamics GP,
NetSuite, QuickBooks), MineralTrees accounting manager, invoice approval, and payment
approval applications are easily integrated into existing solutions for businesses.
President and CEO: BC Krishna, President and CEO
Source:
http://www.mineraltree.com/product/
Miura Systems

Type: POS
Ownership: DFJ Esprit
Headquarters: Stokenchurch, England
Domain: http://www.miurasystems.com/
Company Description: Miura is a provider of secure payments hardware and platforms.
They are a unique specialty provider of secure chip & pin payments hardware. Their
solutions range industries including retail, financial, government, and healthcare.
CEO: Ian Rutland
CFO: Crispin Quail
Source:
http://www.miurasystems.com/solutions/
https://www.crunchbase.com/organization/miura-systems
August 2015
Mozido

Type: POS
Ownership: Tiger Management Corporation, Wellington Management, Tomorrow
Ventures, MasterCard, H.R.H. Sheikh Nahyan
Domain: http://mozido.com/
Company Description: Mozido provides an integrated platform of cloud-based mobile
payment solutions that aim to unlock financial freedom for those who carry mobile phones
but do not have bank accounts. Mozidos mobile payments include bill pay, airtime top up,
national and international remittance, P2P payments, stored value accounts, and merchant
payments, all with PCI compliant security, data analytics, and loyalty programs built in.
They currently have operations in the US, Mexico, Central America, the Caribbean, Middle
East, Southeast Asia, and Africa.
President: Mike Love
CFO: Scott Ellyson
Source:
https://www.crunchbase.com/organization/mozido
http://www.mozido.com/about/about-mozido/
OoBi
Founded: 2015
Type: POS, Ecommerce & Marketplace Lending
Ownership: Private
Domain: N/A
Company Description: OoBi (Out Of Bank Interactions) is a secure mobile wallet with an
in-app marketplace for revolving consumer credit at the point-of-sale. Self-described as the
Uber app of the credit card industry, OoBis app platform offers in-app marketplace
lending which can offer lower interest rates than credit cards with the convenience of
financing at the point-of-sale. OoBi uses existing mobile wallet and card network
infrastructure (no new hardware or software required), enabling users to upload their
existing credit cards and payment options. OoBis mobile wallet offers a secure platform
that tokenizes transactions and automates each transactions card selection by selecting the
cheapest financing option available. OoBi claims that it can initially cut 2.5-3% off of the
average 15% average credit card interest rate. OoBis revenues are driven by origination
fees on card spending volumes from marketplace originated credit.
Co-Founder: Ed Manicka
Co-Founder: Manjunathan Padua
Co-Founder: Sankar MadhavaRao
Co-Founder: Bradley Berning
Source:
Brad Berning (contact information: brad@oobinet.com)
August 2015
Payfirma

Ownership: New Brunswick Investment Management Corporation, Great West Lifeco,
CIBC World Markets, Dundee Capital Markets
Headquarters: Vancouver, BC, Canada
Domain: https://www.payfirma.com/
Company Description: Payfirma enables merchants to take payments in a variety of ways,
from card readers that are compatible with mobile and desktop devices, to ecommerce
gateways, recurring billing, and data analytics. They are targeting SMBs who will benefit
from expanding their sales channels from the standard brick and mortar store.
CEO: Michael Gokturk
Source:
https://www.crunchbase.com/organization/payfirma-corporation
https://www.payfirma.com/platform/
PayItSimple

Type: POS
Ownership: Private
Domain: https://www.payitsimple.com/
Company Description: PayItSimple is a new way to finance purchases without setting up
any additional lending channels. Using your existing credit card, they are able to divide up
the payments into fixed installments at the POS. All you have to do is use a Visa or
MasterCard credit card, choose the number of installments, and then you pay 0% interest
on the installments.
CEO: Alon Feit
Source:
https://www.payitsimple.com/pay-on-your-terms/
https://www.crunchbase.com/organization/payitsimple
August 2015
Payleven

Type: POS
Ownership: New Enterprise Associates, HV Holtzbrinck Ventures, B5
Headquarters: Berlin, Germany
Domain: https://www.payleven.co.uk/
Company Description: Payleven is a payment processing company that offers a chip and pin
card reader than connects via Bluetooth to your smartphone or tablet, which runs on their
app. It is compatible with Apple and Android platforms. They also offer a merchant service
area where you can monitor sales, employees, and refund payments.
Co-Founder: Konstantin Wolff
Co-Founder: Rafael Otero
Source:
https://www.crunchbase.com/organization/payleven
https://payleven.co.uk/accept-payments/
PayNearMe

Ownership: True Ventures, August Capital, GSV Capital, Maveron, Khosla Ventures
Domain: http://paynearme.com/en/
Company Description: PayNearMe enables consumers to pay with cash for rent, utilities,
online purchases and more, at 17,000 retail store locations. PayNearMe is an electronic
cash-transaction network that enables customers to make cash payments, for a wide variety
of services, within their neighborhood at stores such as 7-Eleven, Family Dollar, and ACE
Cash Express instead of using a non-cash payment method. When the customer purchases a
good online, instead of using a cashless transaction, they receive a bar code on their mobile
device that they then scan at the designated location, and then pay with cash.
CEO: Danny Shader
Source:
https://www.linkedin.com/company/paynearme
https://www.crunchbase.com/organization/paynearme
http://paynearme.com/en/
August 2015
Payoneer

Type: Billing
Ownership: Nyca Partners, Greylock Partners, Ping An, Carmel Ventures, Susquehanna
Growth Equity, Vintage Venture Partners
Domain: http://www.payoneer.com/
Company Description: Payoneer is a global commerce solutions company that connects
business and professionals across borders with its innovative international payments
platform. Individuals can choose to receive money though a loaded prepaid card or direct
wire to their local bank account. With Payoneer, small businesses and professionals can
receive or withdraw funds via the Payoneer prepaid MasterCard card and online
marketplaces or businesses can send mass payout solutions globally. The Payoneer
platform reaches over 200 countries in 100+ currencies across the world to facilitate both
sides of payment transactions. Currently, the beneficiary is charged $3 per transaction.
Lastly, in addition to bank transfers and MasterCard cards, Payoneer also offers local
eWallets and international checks.
President: Yuval Tal, President
CEO: Scott Galit
Source:
https://www.crunchbase.com/organization/payoneer
http://www.payoneer.com/payment-services/en/howitworks.aspx
Paytm

Type: Digital/Mobile
Ownership: Private
Headquarters: India
Domain: https://paytm.com/
Company Description: As Indias largest mobile commerce platform with over 20M users,
Paytm is the consumer brand of Indias mobile internet company One97 Communications.
Paytm strives to enable people to access commerce from an increasingly mobile world, and
in addition equips customers with a secure online wallet called Paytm Cash.
CEO: Vijay Shekhar Sharma
Source:
https://www.crunchbase.com/organization/paytm
https://paytm.com/
August 2015
Powa Technologies

Type: POS
Ownership: Wellington Management, BayPond Partners
Headquarters: London, England, UK
Domain: http://www.powa.com/
Company Description: Powa Technologies is an end-to-end payment platform that offers
solutions for POS hardware, mobile payments facilitated through beacon technology, and
an ecommerce payment gateway. PowaTag, PowaPOS, and PowaWeb are designed to
enhance the customer experience by giving merchants a variety of online and offline
payment methods. In addition, Powa was recently enlisted by Vodafone to enable UK pay
as you go customers to top up the credit QR codes, although there is no other information
surrounding the deal.
CEO: Dan Wagner
Source:
http://www.powa.com/about/
https://www.crunchbase.com/organization/powa-technologies
Poynt

Type: POS
Ownership: Nyca Partners, Google Ventures, Webb Investment Network, Matrix Partners
Domain: https://www.getpoynt.com/
Company Description: Poynt is an all-in-one next generation mobile POS payment terminal
for retailers. It combines a dual touch screen device with an EMV enabled card reader, NFC
enabled reader, data analytics platform, and even a printer so it can be integrated with a
traditional cash register or a stand-alone POS device. They have partnered with
BigCommerce, Intuit, Chase Paymentech, and Vantiv among others to bring users a full
suite of complementary services.
CEO: Osama Bedier
Source:
https://www.crunchbase.com/organization/poynt-2
https://getpoynt.com/
August 2015
Revel Systems

Type: POS
Ownership: Welsh Carson, Anderson, & Stowe, Invest Northern Ireland, DCM,
DreamFunded, Rothenberg Ventures
Domain: http://www.revelsystems.com/
Company Description: Revel Systems is a company that provides mPOS solutions for the
restaurant and retail industries that runs entirely through an iPad. The applications include
employee logic, order taking, order details, payment processing, cook view, menu
configuration, inventory control, employee management, data analytics, and a CRM
feature. This application can be directly linked to Yelp or Foursquare sites to increase
customer engagement via social check-ins.
CEO: Lisa Falzone
CTO: Christopher Ciabarra
Source:
https://www.crunchbase.com/organization/revel-systems
SayPay Technologies

Type: Security
Ownership: Private
Headquarters: Pleasanton, CA
Domain: http://saypaytechnologies.com/
Company Description: SayPay Technologies is a payment solutions company that uses
voice biometric software to enable and authorize ecommerce, bill pay, check bank balances,
transfer funds, etc. Their technology is patent-pending and offers a more secure way to do
business online.
CEO: Steve Hoffman
Source:
http://saypaytechnologies.com/about/
August 2015
Sellfy

Type: Ecommerce
Ownership: Private
Headquarters: Latvia
Domain: https://www.sellfy.com/
Company Description: Sellfy provides an easy solution to sell digital products online via
their ecommerce platform. Content creators can upload their digital content, and
automatically get a product page to share. Sellfy hosts the product, handles the payments,
and delivers your products. In addition, you receive your payment instantly after the sale is
made.
CEO: Maris Dagis, CEO
CTO: Kristaps Alks
Source:
https://www.crunchbase.com/organization/sellfy
https://www.linkedin.com/company/sellfy
https://www.sellfy.com/
ShopKeep

Type: POS
Ownership: Tribeca Venture Partners, Contour Venture Partners, TTV Capital, Thayer
Street Partners, Canaan Partners
Domain: http://www.shopkeep.com/ipad-pos
Company Description: ShopKeeps POS SaaS technology essentially replaces the cash
register for small businesses. Designed for multiple industries, they provide a customizable
interface which allows the merchant to ring sales, process card transactions, print receipts
and manage inventory via the cloud. It comes in two segments: the iPad interface, where the
transaction is processed, and the webpage where the transaction data is available to
merchants. ShopKeep charges $49/month per register.
Founder: Jason Richelson
CEO: Norm Merritt
COO: David Olk
Source:
https://www.crunchbase.com/organization/shopkeep-com
http://www.shopkeep.com/ipad-pos
https://www.linkedin.com/company/shopkeep-pos
August 2015
SimplyTapp

Type: POS
Ownership: Verizon Ventures, Blue Sky Capital, Texas Venture labs, Mozido, Lightspeed
Venture partners
Domain: https://www.simplytapp.com/
Company Description: SimplyTapp is a POS company specializing in mobile NFC enabled
solutions. They create platforms that allow developers to use mobile devices as POS
terminals. They offer hosted solutions as well as full turnkey secure transactions.
CEO: Doug Yeager
President: Ted Fifelski
Source:
https://www.crunchbase.com/organization/simplytapp
https://www.linkedin.com/company/simplytapp-
Spreedly

Type: Security
Ownership: Emerge
Headquarters: Durham, NC
Domain: https://www.spreedly.com/
Company Description: Spreedly is a cloud-based credit card security provider that vaults
and tokenizes credit card information and allows marchants to work with multiple
payment gateways. They want to dramatically reduce a merchants PCI compliance scope
and be able to work with new innovative payment types.
CEO: Justin Benson
CTO: Nathaniel Talbott
Source:
https://www.crunchbase.com/organization/spreedly
https://spreedly.com/features
August 2015
Square

Ownership: Sequoia Capital, Richard Branson, Visa, Citi Ventures, Goldman Sachs,
Morgan Stanley, JP Morgan & Chase, GGV Capital, Tiger Technology Global Management, Marissa Mayer, Khosla Ventures, Government of Singapore Investment Corp.
Domain: https://squareup.com/
Company Description: Square is a full-service point-of-sale tool designed to give every
business the ability to accept credit cards. They offer a suite of products including the card
reader to sales and inventory tracking. They charge 2.75% per transaction for Visa,
MasterCard, and American Express. On Friday July 24, it was reported that Square filed
for an IPO privately under the JOBS Act. This will be a story to watch in the coming weeks
and months as one of the largest FinTech players looks to take the next step towards
becoming a public company.
CEO: Jack Dorsey
Source:
https://squareup.com/about
https://www.crunchbase.com/organization/square
https://www.linkedin.com/company/square-
Stripe

Type: Ecommerce
Ownership: Heavybit Industries, Elon Musk, Peter Thiel, Aaron Levie, Khosla Ventures,
Andreessen Horowitz, Sequoia Capital
Domain: http://stripe.com/
Company Description: Stripe is an ecommerce payment platform provider that enables
online merchants to easily accept payments both on desktop and mobile devices. They
provide a suite of APIs that enable Stripe Checkout, which is easily customizable and gives
merchants the ability to design the interface while Stripe takes care of processing and
compliance. Their additional services include flexible billing periods, coupons, trials,
unlimited subscription options, web-hooks, data & reporting, and recurring billingall of
which dramatically simplify the payment process for merchants and customers.
CEO: Patrick Collison
President: John Collison
Source:
https://www.crunchbase.com/organization/stripe
https://stripe.com/us/features
August 2015
Subledger

Type: Billing
Ownership: Private
Headquarters: Latvia
Domain: http://www.subledger.com/
Company Description: Subledger is a payments company that produces a set of APIs that
enables developers to develop accounting functions within apps. Self-described as Google
Analytics for money, Subledger lets you add code snippets to their applications.
Finance & Administration: Riki Crusha
Source:
https://www.crunchbase.com/organization/subledger
http://subledger.com/#team
SumUp

Type: POS
Ownership: Venture Incubator, BBVA Ventures, TA Ventures, Shortcut Ventures,
Life.SREDA, Groupon, Tengelmann Ventures, b-to-v Partners AG
Domain: https://www.sumup.uk/
Company Description: Sumup is a mobile POS company that allows merchants to accept
credit and debit using their smartphones or tablets. They offer a solution that provides a
mPOS Chip & Pin payment acceptance terminal that is built upon turnkey EMV
technology, terminal hardware, and mobile applications. SumUp has operations in 14
countries including the UK, Germany, Russia, and Brazil.
CEO: Daniel Klein, CEO
CSO: Marc-Alexander Christ, CSO
COO: Petter Made, COO
CCO: Jan Deepen, CCO
CMO: Stefan Jeschonnek, CMO
Source:
https://www.crunchbase.com/organization/sumup
https://sumup.co.uk/product/pin
August 2015
SupportPay

Type: Billing
Ownership: Salesforce Ventures, Aspect Ventures, Broadway Angels, TA Ventures, Draper
Associates, RPM Ventures, TEC Ventures, T5 Capital
Headquarters: Santa Clara, CA
Domain: http://www.supportpay.com/
Company Description: SupportPay is an online platform enabling automated child support
payments which allows parents to share expenses and transfer money across the platform.
They streamline the process so you do not have to manage payment documents and end
potential conflict. Although it is best to use with both parents, the platform is still available
to manage individual parental expenses.
CEO: Sheri Atwood, CEO
Source:
https://www.crunchbase.com/organization/supportpay
http://www.supportpay.com/products/
Swipely

Type: POS
Ownership: Index Ventures, Shasta Ventures, Greylock Partners, First Round, Pritzker
Group Venture Capital, SV Angel, Lowercase Capital
Headquarters: Providence, RI
Domain: https://www.swipely.com/
Company Description: Swipely is a company which provides merchants with a way to
better understand their customers with detailed and valuable POS, sales, and customer data
all in one place. With their software, merchants are able to track spend, visits, and
preferences of their customers by leveraging the payment network in order to understand
what impacts customer behavior and how to drive sales through loyalty.
CEO: Angus Davis, CEO
Source:
https://www.crunchbase.com/organization/swipely
https://www.swipely.com/features/
August 2015
TabbedOut

Type: POS
Ownership: New Enterprise Associates, NEA, Morgan Creek Capital Management,
Wellington Management, Trellis Partners, Angel Syndicate, Raven Venture partners,
Heartland Payment Systems
Domain: http://www.tabbedout.com/
Company Description: TabbedOut is a free app that lets customers open, view, and pay bar
and restaurant tabs through their mobile phone. The app integrates easily with most POS
systems, and adds value through enhanced security (dont have to present card) and
increased simplicity. In addition to providing the same fast checkout as ApplePay or
Android Pay, TabbedOut provides the merchant with custom analytics and loyalty
tracking.
CEO: Alexander Broeker
CTO: Tom Bernhardt
Source:
https://www.crunchbase.com/organization/tabbedout
http://www.tabbedout.com/
https://www.linkedin.com/company/tabbedout
Taulia

Type: Billing
Ownership: Zouk Capital, BBVA Ventures, SEB Private Equity, Lakestar, Trinity Ventures,
TELUS Ventures, Matrix Partners, DAG Ventures, EDBI, QuestMark Partners
Domain: http://www.taulia.com/en/
Company Description: Taulia allows users to automate and maximize supplier discounts
while making the supply chain a smoother process. They accomplish this through cloudbased invoice, payment, and dynamic discounting management solutions.
CEO: Bertram Meyer, CEO
Source:
https://www.crunchbase.com/organization/taulia
http://www.taulia.com/en/products
August 2015
Trustly Group

Type: Ecommerce
Ownership: BDC Venture Capital
Headquarters: Stockholm
Domain: https://trustly.com/en/
Company Description: Trustly is a payments technology company that creates and markets
ecommerce payments solutions that enable banking payments. Their solutions are tailored
for both B2C and C2C payments. As of today, they have operations in Sweden, Finland,
Denmark, and Spain.
CEO: Carl Wilson
CTO: Joel Jacobsson
CPO: Lukas Gratte
Source:
https://www.crunchbase.com/organization/trustly-group
https://trustly.com/en/about/
Vend

Type: Ecommerce
Ownership: Point Nine Capital, Valar Ventures, Square Peg Capital
Headquarters: Auckland, New Zealand
Domain: https://www.vendhq.com/
Company Description: Vend is a web-based POS and retail management system that is
designed to accept any type of payment including credit and debit cards as well as iZettle
and PayPal. Vend provides its customers with both an in-store POS system and an
ecommerce solution in addition to product and inventory management, reporting, and store
management features. Vend easily integrates into accounting software providers including
Xero and QuickBooks.
CEO: Vaughan Rowsell
Source:
https://www.crunchbase.com/organization/vendhq
https://www.vendhq.com/about-us
August 2015
WePay

Type: Ecommerce
Ownership: Y Combinator, SV, Angel, Ignition Partners, Highland Capital Partners,
August Capital, Webb Investment Network, FTV Capital
Domain: https://www.wepay.com/
Company Description: WePay is a payments company that creates platforms for online
marketplaces, crowdfunding sites, and SMBs so they can both improve customer
experiences and be better equipped to accept payments online. In addition, they take on all
of the necessary compliance and risk management so business owners dont have to.
CEO: Bill Clerico
Source:
https://www.wepay.com/wepay-connect
https://www.crunchbase.com/organization/wepay
Zuora

Type: Billing
Ownership: BlackRock, Index Ventures, Wellington Management, Vulcan Capital, Tenaya
Capital, Passport Capital, Top Tier Capital Partners, Northgate Capital, New World
Capital, Shasta Ventures, Redpoint Ventures, Benchmark, Greylock Partners
Domain: https://www.zuora.com/
Company Description: Zuora is a subscription billing company that is designed to take
advantage of the broader shift towards subscription and service based economy. They aim
to help merchants monetize existing relationships through their easily managed Z-business
segments made up of z-commerce, z-billing, and z-finance which provide an end-to-end
subscription business managed software platform that connects directly into merchants
existing accounting software.
CEO: Tien Tzou
Source:
https://www.crunchbase.com/organization/zuora
August 2015
# 5 : C O R P O RA T E S ER V I C E S
The corporate services industry is wide-ranging in scope, with companies entering the space
providing solutions such as data analytics, trading platforms, HR services, and fraud
prevention. Given the breadth of the industry, we believe the infusion of technology into the
space will open up new doors for innovative startups to change the way corporate services
are provided.
What is a corporate service? A corporate service in the context of financial technology is
one which enables small-to-medium businesses as well as enterprise level institutions to
improve operational performance. Whether it is in enhanced efficiency, tighter security, or
increased access to information, new corporate services are changing the way institutions
operate. An early example of a service can be traced back to 1985 when the first version of
Microsoft Excel was launched. More recently, the implementations of data services such as
Bloomberg, FactSet, and Thomson Reuters serve as examples that have also seen significant
adoption. Wide-ranging in nature, there is no single way to encapsulate the vast array of
ways corporate service technologies can enable institutions to run more efficiently and
better serve their clients.
What can they do? Today more than ever before, technology is acting as an enabler for
many different segments of the business community. For small businesses, automated HR
technology solutions are allowing them to run with fewer overhead costs. For the entire
payments industry, fraud detection and prevention technologies are aiming to lessen the
costs for insecure payment transactions. For the larger investment banks, technology is
improving the inefficient and illiquid fixed income trading market. And for everyone, data
analytics, or big data, provides a new tool with new ways to peer into both companies
and the greater markets as a whole. We believe that the vast size of the market for these
technologies provides ample opportunity for nimble startups to pick their target market and
gain traction in the emerging corporate services tech industry.
Why Corporate
Service Tech?
As corporate services are increasingly broad in their applications, institutions are leveraging
the technological innovation of startups to increase efficiency, security, and operational
capabilities. We believe there are four main drivers for growth in the industry: Leveraging
technology for increased efficiency, increasing demand for heightened security, regulation
within the financial industry, and the expanding possibilities that big data can bring.
1.
Efficiency: With intense competition comes a large appetite for technology that enables
businesses to run lean business models. The movement towards leveraging technology
to enhance efficiency within corporations is strongpushing firms to automate what
can be automated and evolve with financial technology to remain competitive.
2.
Security: With the recent high-profile security breaches, firms are scurrying to
strengthen their security. As FBI Director James Comey said, There are two kinds of
companies in the United States, those who know they have been hacked, and those that
dont know they have been hacked. As a result of seeing the damage security breaches
can cause, there is strong demand for the technologically advanced security solutions
that can protect businesses from cyber-attacks that the new FinTech companies
provide.
August 2015
3.
Regulation: Since the financial crisis of 2008, regulation has become a prominent issue
within the entire financial services industry. With heightened regulatory pressures come
increased compliance and all the costs associated with maintaining proper compliance.
These increased costs are mostly burdened on the SMBs that do not have the resources
to spend on additional HR personnel. As the regulatory environment continues to
evolve, automated and computerized software is a tool that firms can use to
automatically keep up with the constantly changing regulations and limit the time
spent on HR.
4.
Drive for Data: According to the Council on Foreign Relations, as recently as 2000 only
of the worlds stored information was digital. Using the internet as an enabler, big
data is changing the way we as a society make decisions. As the desire to quantify
information increases the use of big data will continue to grow within all aspects of
business. With that, the drive for innovative technologies that advance the capabilities
of big data will increase as we continue to become a data dependent society.
How Do They Work?
Due to the wide-range of possible solutions these firms are targeting, it is important to
really understand how some of the larger players are addressing their respective niches.
Although Ayasdi, Kensho, and Fundbox are not exhaustive examples of the entire space,
they paint a representative picture of how firms are leveraging technology to solve specific
issues within corporate services.
Algomi
What is Algomi? Algomi has created a network that enables market participants to securely
and intelligently harness data to increase efficiency and transparency within the fixedincome trading market.
What problem is it solving? Since 2008 and the regulatory changes that have followed, sellside investment banks are no longer holding the trading inventory that they once used to
facilitate trades for their clients. Instead, they are acting more as a distributor by buying
and selling individual blocks of securities as opposed to having them warehoused within the
firm to be able to fulfill a clients order. This has created a lack of transparency within the
market, as buy-side firms are blind as to who would be best able to fulfill their order.
What does Algomi do? For the banks, Algomis Honeycomb network has created a realtime network to their internal and external clients. Using their own data, Honeycomb
allows banks to identify trade opportunities and encourages internal collaboration. For
investors, the Honeycomb network provides insight and data into which bank would be
best able to facilitate their trade at the right time. This enables the investor to deal
discretely and in size via voice trading.
How does it work? By providing software to the sell-side it allows buy-side subscribers to
look into the trading history of the different firms to essentially see which type of product
each firm trades. Algomi plugs into each banks trading systems to utilize their internal
data, as well as external aggregators and sources to predict which client will need what
product at a point in time. This data is then shared internally within the bank as well as to
buy-side subscribers that get to use this information to see how to best execute their
prospective trade. Algomi is essentially providing smart marketing to the fixed-income
trading market, which then combats illiquidity and increases transparency.
August 2015
Exhibit 37
ALGOMI TRADING DASHBOARD
Source: Algomi
Ayasdi
What is Ayasdi? Ayasdi is a company that was founded after a decade of research at
Stanford focusing on Topological Data Analysis (TDA) combined with machine learning
algorithms. This highly advanced technique Ayasdi refers to as Machine Intelligence and
is the backbone of their main product, the Ayasdi Core.
What does Ayasdi actually do? Starting with large data sets, the Ayasdi Core applies
statistics, geometry and machine learning to analyze thousands of subtle nuances in the
data to find and explain all the significant patterns hidden within the data. Using topology,
which is a branch of mathematics concerned with the study of geometric properties and
spatial relations unaffected by the continuous change of shape or size of figures. In other
words, Ayasdi is able to map the hidden connections in massive datasets. Think about a
social graph of LinkedIn connections, where maps show the relationships between us and
our connections. Ayasdi will create a similar map, but instead of LinkedIn connections it
could create a map of data related to breast cancer data.
What are the implications of this technology? The implications of this revolutionary new
way to see into massive data sets has unlimited implications. Whether it is giving cancer
researchers more insight into patterns of breast cancer, business executives seeing more into
how to both optimize their companys operation and into the massive global financial
markets, or helping security analysts unlock the largest challenges concerning national
security, Ayasdi is revolutionizing the world of big data and unlocking the patterns hidden
within.
August 2015
Exhibit 38
AYASDI MAP EXAMPLE
Source: Ayasdi
Who currently uses Ayasdi? Ayasdis current customers are some of the worlds leading
organizations, including Citi Bank, Merck, Lockheed Martin, Mount Sinai, US State
Department, US Department of Homeland Security, GE, Siemens, and Credit Suisse among
others. In addition, Ayasdi has collaborators on the leading edge of research across a
variety of fields, and these institutions include Columbia University, Stanford University,
Harvard Medical School, The Food and Drug Administration, and the Miami Heat
basketball organization.
Implementation within financial institutions: Within financial institutions, there are 3 main
segments where Ayasdi operates: customer insights, market insights, and risk insights.
Customer insights include taking customer segmentation to a whole new level. As an
example, Ayasdi can dive into complex data to determine whether an investor is risk
averse based on past trading history. Market insights include forecasting liquidity and
asset allocation strategies for the buy-side. Lastly, risk insights enable large institutions to
better forecast revenues from both an operations perspective and in terms of helping firms
pass regulatory/compliance rules.
Who backs Ayasdi? Ayasdi has raised over ~$100M from leading VC funds such as Khosla
Ventures, Kleiner Perkins Caufield & Byers, GE Ventures, Institutional Venture Partners,
and Citi Ventures just to name a few.
Fundbox
What is Fundbox? Fundbox is a small business solution designed to fill in the gaps of small
businesses cash flow patterns. Fundbox does this by clearing outstanding invoices so that
small business can have full certainty at all times regarding their cash flow.
August 2015
How does it work? According to their website, it takes about 20 seconds to create a free
account. You then link your already-in-place accounting application to your new Fundbox
account, choose the invoices you want to clear, and receive payment in your bank account
in 1-3 business days. Fundbox is able to clear all 30, 60, or 90 day invoices for a variable fee.
For a $1k, a three month invoice, fees range from $52-$72. For a $14k invoice, fees range
from $720-$1,020
Who do they partner with? For accounting software, they partner with the largest providers
such as Intuits QuickBooks, Xero, FreshBooks, Harvest, and Wave.
Who backs Fundbox? Fundbox has raised nearly $60M in 2 rounds from backers such as
Khosla Ventures, SVAngel, LionBird, Blumberg Capital, General Catalyst partners, and
Vikram Pandit.
Exhibit 39
FUNDBOX DASHBOARD
Source: Fundbox, Piper Jaffray
Kensho
What is Kensho? Kensho is a data analytics company that aims to create a Google-like
search to stock picking that is backed by firms such as Google Ventures, Goldman Sachs,
CNBC, New Enterprise Partners, and Accel Partners.
How does it work? Their global data platform searches through more than 90,000 actions
such as price history, policy changes, economic reports, and political events to determine
their impact on financial assets.
What kind of questions can users ask? For the end users, they simply have to ask questions
such as which asset classes have performed best after the Federal Reserve raises rates? and
it will give you an answer based on the data it has scraped and analyzed. Per a Forbes
article, Kensho could even answer questions like Which cement stocks go up the most
when a Category 3 hurricane hits Florida? The answerTexas Industries.
August 2015
What is the end product? The answer comes in an easy to use visual that can be changed
based on parameters such as time frame or companies in the study. In addition, the
software, which they have named Warren (after Mr. Buffet himself,) can be turned on
autopilot to find price disparities that breakout of historical norms completely on its own.
As Daniel Nadler, the CEO and founder says, We could all get hit by a bus, and it would
continue to find price disparities.
Who uses it? This tool may turn out to be the future of how investors analyze historical
data, and its already seeing adoption from firms such as CNBC and Goldman Sachs who
both use Kensho and hold minority stakes in the company. Goldman Sachs has forged a
unique partnership that included a launch of Kenshos data analytics platform across the
firm. Additionally, CNBC has added a segment called Kensho Stat Box where CNBC
incorporates Warrens platform to help predict things such as what the Iran nuclear deal
could mean for the oil market. It enables financial firms to complete research in seconds
what may have taken analysts hours of pouring over data and charts.
August 2015
Advyzon

Ownership: Private
Headquarters: Denver, CO
Domain: http://main.yhlsoft.com/main/index.html
Company Description: Advyzon is a SaaS platform that helps financial advisors to better
service their clients. Advyzon is a scalable cloud-based service that includes CRM,
portfolio, performance reporting, monitoring, investment planning, and business
intelligence.
Founder, Position: Hailin Li, CEO
Source:
http://main.yhlsoft.com/main/index.html
https://www.linkedin.com/company/yhlsoft-inc-
Algomi

Ownership: Lakestar
Domain: http://www.algomi.com/
Company Description: Algomi was founded to address the issues specific to the fixed
income trading environment as a result of the ever-changing landscape of capital, leverage,
and liquidity requirements. Algomis Honeycomb technology enables investors to identify
well qualified dealers to facilitate trades in the illiquid market without disturbing the
current market conditions. As of May 19, 2015, 50 buy-side firms had joined Algomi with
10 banks installed.
Co-Founder, Position: Usman Khan, CTO
Co-Founder, Position: Robert Howes, COO
Source:
http://www.algomi.com/#team
https://www.crunchbase.com/organization/algomi-ltd
http://finovate.com/algomi-launches-honeycomb/
August 2015
Ayasdi

Ownership: Khosla Ventures, Institutional Venture Partners, Citi Ventures, GE Ventures,
Draper Nexus Ventures, Centerview Capital Technology, Kleiner Perkins Caufield & Byers
Headquarters: Menlo Park, CA
Domain: http://www.ayasdi.com/
Company Description: Founded after a decade of research at Stanford, Ayasdis advanced
analytics solution combines machine learning with Topological Data Analysis enabling uses
to extract subtle insights from their data. Ayasdi Core is an advanced analytics software
application that enables businesses to make sense of large, complex datasets. Their
customers include GE, Citigroup, and Mount Sinai Hospital.
Co-Founder, Position: Gunnar Carlsson
Source:
https://www.linkedin.com/company/ayasdi
http://www.ayasdi.com/product/core/
https://www.crunchbase.com/organization/ayasdi
BlueVine

Ownership: Tribeca Venture Partners, Contour Venture Partners, TTV Capital, Thayer
Street Partners, Canaan Partners
Domain: http://www.bluevine.com
Company Description: BlueVine is a leading online provider of working capital financing to
small businesses. The company was founded with a simple goal of helping small businesses
overcome their short-term cash flow challenges. Specifically, BlueVine bridges the cash gap
which happens due to slow paying customers by enabling businesses to sell their unpaid
invoices. With BlueVine there's no need to wait for net 30 or even 60 receivables ever again.
The company provides a quick, simple and 100% online solution. Funds are typically
available within 1 business day, with BlueVine providing 85% of the invoice amount
upfront and the rest, less fees of ~1%, when an invoice is paid. BlueVine offers credit lines
between $5,000 and $100,000.
Co-Founder, CEO: Eyal Lifshitz
Co-Founder, CTO: Nir Flar
Source:
https://www.crunchbase.com/organization/bluevine
https://www.bluevine.com/how-it-works/
August 2015
Digital Reasoning

Ownership: Goldman Sachs, Credit Suisse, In-Q-Tel, Nashville Capital Network
Headquarters: Arlington, VA
Domain: http://www.digitalreasoning.com/
Company Description: Digital Reasoning is pioneering a way for machines to detect
various behavioral patterns within electronic communications indicative of suspicious
activity. Their software analyzes chat room messages and emails within financial
institutions to detect insider trading and other unlawful behavior by leveraging natural
Language Processing and Machine Learning. Key to their technology is the belief that all
technology needs to learn and evolve over time, which is what sets Digital Reasoning apart
from the crowd, and makes it applicable to other situations outside of financial institutions
including healthcare and national defense.
Founder: Tim Estes, CEO
Source:
https://www.crunchbase.com/organization/digital-reasoning-systems
ebankIT

Ownership: Private
Domain: http://www.ebankit.com/en
Company Description: ebankIT is an Omni channel banking software provider of solutions
for big data, modeling, and deep analytics to help large and medium-sized banks better
understand their customers. Offering everything from internet and mobile banking to
Google-glass and TV banking, ebankIT offers a full suite of retail banking software to
better connect banks with their clients.
Co-Founder, Position: Renato Oliveira
Source:
http://www.ebankit.com/en/about-us/
https://www.linkedin.com/company/ebankit
August 2015
Expensify

Ownership: Coyote Ridge Ventures, Barracuda networks, Baseline Ventures, Redpoint
Ventures, SV Angel, Hillsven Capital, Point Judith Capital, Travis Kalanick
Domain: https://www.expensify.com/
Company Description: Expensify is a startup that provides an online expense management
service for businesses. It imports expenses and receipts from credit cards and emails, in
addition to the mobile app where you can take pictures of receipts. Their SmartScan
technology reads receipts and automatically creates expenses.
Co-Founder, Position: David Barrett
Co-Founder, Position: Witold Stankiewicz
Source:
http://use.expensify.com/
https://www.crunchbase.com/organization/expensify-com
Feedzai

Ownership: Sapphire Ventures, Data Collective, Novabase Capital, Oak HC/FT, Esprito
Santo Ventures
Headquarters: San Mateo, CA
Domain: https://www.feedzai.com/
Company Description: Feedzai is a company whose fraud prevention technology uses big
data to predict and detect fraud within the massive global payments industry. According to
Feedzai, their machine learning models detect fraud up to 30% earlier than traditional
methods. They offer solutions for acquirers, issuers, retailers, and ecommerce facilitators.
Co-Founder, Position: Nuno Sebastio
Source:
https://www.crunchbase.com/organization/feedzai
https://www.feedzai.com/home/about-feedzai/
https://www.linkedin.com/company/feedzai
August 2015
Finsphere

Ownership: Bezos Expeditions, Shasta Ventures, Mohn Davidow Ventures, Frazier
Technology Ventures, Vodafone Ventures
Headquarters: Bellevue, WA
Domain: http://www.finsphere.com/
Company Description: Finsphere uses mobile phones as a proxy for an individuals identity.
They utilize patented analytic platforms and applications. Their mobile location acquisition
technology assesses fraud risk of a transaction based in part on the proximity of an
individuals mobile phone to the location of the transaction.
Co-Founder, Position: Mike Buhrmann
Source:
https://www.crunchbase.com/organization/finsphere
http://www.finsphere.com/company/vision
FINTRX by Capital
Hedge

Ownership: Private
Headquarters: Boston, MA
Domain: http://www.capitalhedge.net/
Company Description: Capital Hedge is a SaaS firm who provides data and research to
investment management family office clients and fund managers though their innovative
FINTRX platform. FINTRX is a leading family office intelligence tool and asset-raising
CRM solution for the alternative investment industry. FINTRXs cloud-based data
research, capital raising tools, CRM technology, distribution list creation, and sending
capabilities simplify the asset raising process.
Co-Founder, Position: Russ DArgento, President
Source:
http://www.capitalhedge.net/#!what-is-fintrx/crh3
https://www.linkedin.com/company/capital-hedge-investor-network
http://www.marketwired.com/press-release/venovate-partners-with-capital-hedge-bringquality-alternative-investments-mid-sized-1992738.htm
August 2015
Fundbox

Ownership: Khosla Ventures, SV Angel, General Catalyst partners, Nyca Investment
partners, LionBird
Domain: https://fundbox.com/
Company Description: Fundbox has created a solution for SMBs to manage their current
and future cash flow by giving them the option to clear unpaid invoices early and receive
payment in weekly installments. After sign up, the SMB simply has to choose which
invoices it wants to clear early, and will receive payments in weekly installments. Fees are
charged based on the length and size of the repayment, which fees on a $1k invoice range
from $52-$72.
Co-Founder, Position: Eyal Shinar, CEO
Co-Founder, Position: Yuval Ariav, CTO
Co-Founder, Position: Tomer Michaeli
Source:
https://fundbox.com/how-it-works
https://www.crunchbase.com/organization/fundbox
Kensho

Ownership: Goldman Sachs, Google Ventures, XFund, Devonshire Investors, Accel
Partners, General Catalyst Partners, New Enterprise Associates, Work-Bench
Domain: https://www.kensho.com/
Company Description: Kensho uses Google-inspired technology to give quantitative
statistical analysis to investors. Heres how it works: You simply type in a question (as if it
were a search engine), like Which Apple suppliers share price goes up the most when the
company releases a new iPad? The software dubbed Warren after, Mr. Buffet himself,
will then scan over 90,000 actions to find quantitative answers to more than 65M question
combinations. This new and innovative analytical tool may allow investment professionals
to accurately dive into historical price movements as easily as the common internet search.
Co-Founder, Position: John Fawcett, CEO
Co-Founder, Position: Jean Bredeche, CTO
Source:
https://www.crunchbase.com/organization/kensho-technologies
https://www.linkedin.com/company/kensh-technologies
http://www.forbes.com/sites/stevenbertoni/2014/05/07/can-kensho-bring-google-stylesearch-to-stock-picking/
August 2015
Kusiri

Ownership: Pivotal Innovations, XCeed, DNL Worldwide, Tech City Stars, Dassault
Systemes, level 39, Drebbel
Domain: http://www.kusiri.com/
Company Description: Kusiri is a scalable forensic data searching company that provides
institutions with real time, deep, and fast access to data and data monitoring in order to
protect against fraud, stay ahead of compliance, and transform risk mitigation. It also
allows you to build your own interface with its flexible API. The automatic real-time data
collection allows businesses to focus on running their business instead of updating past files
with new informationthis leads to increased efficiency along with productivity, both of
which lead to a better business.
Co-Founder, Position: David White, Chairman
Source:
http://www.kusiri.com/home
https://www.linkedin.com/company/kusiri
https://www.crunchbase.com/organization/kusiri
Lootsie

Ownership: Private
Headquarters: Culver City, CA
Domain: http://www.lootsie.com/
Company Description: Lootsie is a mobile rewards platform for brands and developers to
increase customer loyalty. Its platform rewards users that hold loyalty points earned by
reaching achievements within apps. It provides white-label and turn-key solutions for
marketing and loyalty systems that are easily customizable and simple to handle on the
front end.
Co-Founder, Position: Marc Mitchell, CEO
Co-Founder, Position: Brandon Werber, President
Source:
https://www.crunchbase.com/organization/lootsie
http://www.lootsie.com/documentation/
August 2015
Market Prophit

Ownership: Private
Domain: http://www.marketprophit.com/
Company Description: Market Prophit uses statistical analysis software to quantitatively
rank financial bloggers based on their track record of the performance of stock market
commentary. The company also analyzes conversations on social media and generates realtime sentiment and buzz metrics for equities, currencies, and commodities.
Position: Igor Gonta, CEO
Source:
https://www.crunchbase.com/organization/market-prophit
Meniga

Ownership: Crealogix, velocity Venture Capital, Frumtak Investment Fund
Headquarters: Reykjavik
Domain: http://www.meniga.com/
Company Description: Meniga provides two different solutions, Market Match and Market
Watch. Market Match is a data analytics engine that aggregates transaction data for
personal financial management. This is essentially a transaction-driven marketing platform
for institutions and a PFM solution for individuals. Market Watch is a real-time market
analytics platform that provides insight in consumer behavior and market trends for
financial institutions and retailers alike. Together, Meniga is a European market leader in
PFM and online banking solutions.
Co-Founder, Position: Georg Ludviksson
Source:
https://www.crunchbase.com/organization/meniga
http://meniga.com/meniga-pfm-solution-2/
miiCard

Ownership: IQ Capital Partners, Par Equity, New Wave Ventures, SixThirty-FinTech
Accelerator
Headquarters: Edinburgh
Domain: http://www.miicard.com/
Company Description: miiCard is a global identity as a service solution that proves a
persons identity 100% online. It leverages the individuals financial account viability and
bank security to prove identity to the level of a passport. Accepting miiCard removes fraud
and increases new customer conversion by insuring security.
Co-Founder, Position: James Varga, CEO
Source:
https://www.crunchbase.com/organization/miicard
https://www.linkedin.com/company/miicard
http://www.miicard.com/for/individuals/how-it-works
August 2015
Money.net

Ownership: Private
Domain: http://www.money.net/
Company Description: Money.net is a market data platform that allows users to monitor
the market and analyze investments using real-time data. This includes US equities, options,
international equities, foreign exchange, bond, and commodity futures as well as an excel
API and a technical charting system all for a flat $95 per month. Money.nets CEO is the
former head of Commodities at Bloomberg who aims for the company to be a better
product than Bloomberg at one-twentieth the cost.
Co-Founder, Position: Morgan Downey, CEO
Source:
http://www.businessinsider.com/20-startups-out-to-create-a-new-world-order-on-wallstreet-2015-7
https://www.money.net/about
Namely

Ownership: Sequoia Capital, Bullpen Capital, Matrix Partners, Greenspring Associates,
Lerer Hippeau Ventures, True Ventures, Vayner/RSE
Domain: http://www.namely.com/
Company Description: Namely is a cloud-based HR platform that offers a suite of tools
including modern HRIS, payroll, benefits, cascading goals, and performance management.
In addition, its easy-to-use dashboard and software is easily integrated with other
complementary HR tools such as Bonusly and Greenhouse.
Co-Founder, Position: Matt Straz
Source:
https://www.crunchbase.com/organization/namely
http://www.namely.com/tour/
Nomis Solutions

Ownership: Square 1 Bank, Red Rock Ventures, Silicon valley Bank, August Capital, Bain
Capital Ventures
Headquarters: San Bruno, CA
Domain: http://www.nomissolutions.com/
Company Description: Essentially, Nomis Solutions is a software company whose solutions
are used to set prices, interest rates, and fees on the products that consumers buy from
banks. This is done through synthesizing data from various sources and filtering out the
noise. They take a customer-centric approach to price optimization, which allows them to
intimately understand their clients and allows them to offer the best product at the optimal
price.
Co-Founder, Position: Robert Phillips
Source: https://www.crunchbase.com/organization/nomis-solutions
August 2015
OpenGamma

Ownership: Accel Partners, Euclid Opportunities, Firstmark Capital, ICAP
Domain: http://www.opengamma.com/
Company Description: OpenGamma is a financial data and analytics company that aims to
improve capital efficiency in the new world of derivatives clearing with respect to
margining and measuring market risk. The OpenGamma Platform enables firms to
optimize their businesses in the evolving OTC markets, improving capital efficiency and
balance sheet management. It provides tools for multi-CCP margin calculations, what-if
analysis and stress testing, and real-time, cross-asset risk and trading analytics across
customized risk scenarios and industry-standard metrics. The platform includes features
with real-time capabilities.
Co-Founder, Position: Kirk Wylie, Chief Innovation Officer
Source:
http://www.opengamma.com/
https://www.linkedin.com/company/opengamma
https://www.crunchbase.com/organization/opengamma
Orchard Platform

Ownership: Spark Capital, Canaan Partners, QED Investors, Brooklyn Bridge Ventures,
Conversion Capital, Social Leverage, Vikram Pandit, John Mack
Domain: https://www.orchardplatform.com/
Company Description: Orchard Platform is an infrastructure provider within the new and
growing marketplace lending market. Orchard works to support operation efficiency in
connecting money managers to the over 450 new loan originators in order to facilitate
transactions and make a market. The companys aim is to make the marketplace lending
market to grow into a viable investment and financial marketplace by enabling managers to
allocate capital with best practices, portfolio benchmarking, modeling, order management,
reporting, and data analytics.
Co-Founder, Position: Matt Burton, CEO
Co-Founder, Position: Jonathan Kelfer, CTO
Co-Founder, Position: Angela Ceresnie, CFO
Source:
https://www.crunchbase.com/organization/orchard
https://orchardplatform.com/company/team/
August 2015
Quantopian

Ownership: Khosla Ventures, Wicklow Capital, Spark Capital, Bessemer Venture Partners
Domain: https://www.quantopian.com/
Company Description: Quantopian is an algorithmic trading platform built to be used in
your browser. Essentially, the company is bringing quantitative finance to the individual
investor. It provides the platform and tools to build and back-test your own algorithms. In
addition, if your algorithm meets a certain set of criteria, the company will give you capital
to invest and you take a slice of the profitsthis is the first crowd-sourced hedge fund.
Co-Founder, Position: John Fawcett, CEO
Co-Founder, Position: Jean Bredeche, CTO
Source:
https://www.quantopian.com/about
https://www.crunchbase.com/organization/quantopian
https://www.linkedin.com/company/quantopian
SecureKey

Ownership: Visa, MasterCard, Intel Capital, BlueSky Capital, Rogers Ventures, Discover
Financial Services, Telus Ventures, Rogers Venture Partners
Headquarters: Toronto, Canada
Domain: http://www.securekey.com/
Company Description: SecureKey is a company that provides identity and authentication
platforms for organizations that deliver online consumer services such as ecommerce or bill
pay. It allows other companies to build or subscribe to an identity network that acts as a
connection between the user and the organization. SecureKey offers two products,
bridge.net Exchange that enables the creation of identity ecosystems of identity providers
and subscribing services. Briidge.net Connect is the user platform that allows them to
authenticate across all service channels on their own devices.
Founder, Position: David House, Chairman
Position: Charles Walton, CEO
Source:
https://www.crunchbase.com/organization/securekey-technologies
http://securekey.com/about-securekey/board-of-directors/
August 2015
Symphony

Ownership: Citadel, Blackrock, Merrill Lynch, BNY Mellon, Citibank, Goldman Sachs,
Deutsche Bank, Credit Suisse, Jefferies Group, JP Morgan, Morgan Stanley, Maverick
Capital, Wells Fargo
Domain: http://www.symphony.com/
Company Description: Symphony is moving to take on Bloomberg as Wall Streets most
popular messaging tool. They offer open messaging and a workflow platform that enables
users to communicate and collaborate by bolstering productivity. Symphony combines
encrypted email and messaging into one secure environment.
CEO: David Gurle
CTO: Mike Harmon
Source:
http://symphony.com/secure-email-providers/
https://www.crunchbase.com/organization/symphony-3
Trulioo

Ownership: Tenfore Holdings, BDC Venture Capital, Blumberg Capital
Headquarters: Vancouver
Domain: https://www.trulioo.com/
Company Description: Trulioo is an ID verification company that uses its GlobalGateway
electronic identity verification service to build a framework of trust online. It specifically
aims to help businesses comply with anti-money laundering and Know your customer
identity verification needs, which open up new revenue channels for businesses.
Co-Founder, Position: Stephen Ufford, CEO
Co-Founder, Position: Tanis Jorge, COO
Source:
https://www.crunchbase.com/organization/trulioo
https://www.trulioo.com/product/identity-verification/
August 2015
YCharts

Ownership: Morningstar, Amicus Capital, 12A Fund, Hyde Park Angels, Reed Elsevier
Ventures, Social Leverage
Domain: http://www.ycharts.com/
Company Description: YCharts is a financial data terminal that is meant to be taken away
from your desk and available wherever you go. They provide a large data set of financial
and economic data, and tools to interpret that data. YCharts is catered to financial planners
who need access to powerful data without the cost of the traditional players, think
Bloomberg and FactSet. YCharts offers plans ranging from $40/month to $300/month.
Co-Founder, Position: Shawn Carpenter, CEO
Co-Founder, Position: Ara Anjargolian
Source:
https://www.crunchbase.com/organization/ycharts
http://www.ycharts.com/about/what_we_do
Zenefits

Ownership: Andreessen Horowitz, Khosla Ventures, Fidelity Investments, Insight Venture
Partners, Institutional Venture Partners, Jared Leto, Maverick Capital, SV Angel,
Headquarters: Vancouver
Domain: http://www.zenefits.com/
Company Description: Zenefits is a HR platform that allows companies to integrate
payroll, health insurance, and all other HR functions into one easy-to-use dashboard.
Zenefits automatically updates databases and eliminates paperwork all your HR services
online, and offers you quotes for services that you dont already have. Zenefits is also 100%
free, and was named 2014s hottest startup by Forbes.
Co-Founder, Position: Parker Conrad, CEO
Source:
https://www.crunchbase.com/organization/zenefits
http://www.zenefits.com/payroll-software-online
August 2015
Zen Payroll

Ownership: Google Capital, Emergence Capital Partners, General Catalyst Partners, Glynn
Capital Management, Altimeter Capital, Ribbit Capital
Headquarters: San Francisco
Domain: https://zenpayroll.com/
Company Description: ZenPayroll is a web enabled payroll services company that features
solutions such as automatic tax filings, automatic payroll, and automatic new hire
reporting among others. It also integrates easily with accounting software such as Xero or
QuickBooks and time tracking software such as TSheets in addition to HR services,
expense management, and benefits administration. Essentially, ZenPayroll automates the
back-office for small businesses.
Co-Founder, Position: Joshua Reeves, CEO
Co-Founder, Position: Edward Kim, CTO
Co-Founder, Position: Tomer London, CPO
Source:
https://www.crunchbase.com/organization/zenpayroll
https://zenpayroll.com/
https://www.linkedin.com/company/zenpayroll
August 2015
# 6 : C R O W D F U N D IN G
Crowdfunding has become a new avenue and tool for entrepreneurs and investors alike to
expand the channels of investable assets and bring to life an idea, charity, or new business
concept that like-minded individuals believe in. Crowdfunding platforms have the potential
to increase entrepreneurship by expanding the audience of investors into new sources of
funding that have similar ideas and a desire to support a cause. While still growing rapidly,
we believe crowdfunding will serve as a powerful channel for capital to entrepreneurs and
communities alike as investors recognize the opportunity to invest in like-minded ideas and
their communities.
What is
Crowdfunding?
Crowdfunding is the practice of funding a project or venture by raising funds from a large
number of people typically through an online platform. Crowdfunding serves
entrepreneurs, startups and small businesses that are in the funding gap between backing
from friends/family/venture capital and mainstream financing/institutional capital. We
believe crowdfunding can be broken down into four general categories: 1) Rewards/Perks,
2) Charitable/Donations, 3) Debt/Lending, and 4) Equity investment-based platforms. This
section focuses on equity-based crowdfunding, but also highlights other key crowdfunding
platforms in the rewards and charity models. Debt crowdfunding, like those performed on
marketplace lending platforms like Lending Club, operate similarly to the other two types
and are covered in the Marketplace Lending section of this report
Crowdfunding
Platforms Enable
Investors To Reach
Untapped Markets
We believe that crowdfunding models offer new businesses, especially entrepreneurs and
start-up level companies, a new channel through which to secure equity and debt funding as
an alternative to angel investments, venture capital, private equity, and traditional debt and
banking products. The concept of crowdfunding has gained particular traction in the
United States following the passage of the Jumpstart Our Business Startups (JOBS) Act in
2012, enabling new ways for investors to fund startup businesses. Globally, crowdsourcing
has gained steam particularly in Europe (especially the United Kingdom) as well as Asia. As
crowdfunding has evolved, crowdfunding platforms have also evolved to target the specific
niches of the individuals seeking funds. Some crowdfunding sites specialize in nonprofits or
certain product niches; others might focus on startup equity ownership or even artists.
August 2015
Exhibit 40
CROWDFUNDING PLATFORM EXAMPLES

Type
Definition
Rewards / Perks
Equity
Entrepreneurs pre-sell a product

or service to launch a business
concept without incurring debt or
sacrificing equity/shares.
Charitable / Donation
Investors receive shares of a

company in exchange for the
money pledged.
Collective effort by individuals to

help charitable causes for
organizations or individuals.
Company
Examples
Crowdfunding Basics
The crowdfunding model is driven by 1) the initiator that proposes the project/idea to be
funded, 2) individuals or groups that support the project/idea by funding it, and 3) the
platform that facilitates the transaction by bringing all parties together. Reward and
donation-based crowdfunding platforms like Kickstarter, Indiegogo, and GoFundMe
enable companies and individuals to raise capital in exchange for rewards or perks
depending on the nature of the campaign. Equity crowdfunding platforms like
Crowdfunder and Fundrise enable entrepreneurs and startups to raise capital in exchange
for equity in the company or even real estate.
Crowdfunding platforms generally earn revenue from a success fee based on a percentage of
the funded project or campaign, up to 5%+ on some platforms. Platforms also charge a
payment processing fee typically between 3% and 5% to cover the cost of accepting
payments from credit cards, etc. If a crowdfunding campaign is not successful, platforms
generally do not charge any fees. Most platforms track and measure their success ratio for
funding campaigns.
Exhibit 41
SAMPLE CROWDFUNDING PLATFORM ECONOMICS

Revenue
Source
Paid By
Fees
Kickstarter: Example Fees

Payment Processing
Funding Fee
Fee
Campaign
Campaign
5% of total funds
raised
3% + $0.20 per pledge
Note: If funding is not successful, no fees are charged.

Sources: Kickstarter, Piper Jaffray
August 2015
Market Size &

Opportunity
According to research by crowdfunding advisory group Massolution and industry research

group crowdsourcing.org, crowdfunding globally generated $16.2B in funding transactions
in 2014 and is estimated to reach up to $34.4B in 2015. Part of this growth is explained by
the strong growth of crowd-based marketplace lending platforms, accounting for ~$11B of
those global funds raised in 2014.
Exhibit 42
GLOBAL CROWDFUNDING PLATFORMS $ VOLUME RAISED (IN $

BILLIONS)
Sources: Crowdsourcing.org, Massolution, Piper Jaffray
According to the Massolution/Crowdsourcing.org report, North America accounted for

~$9.5B of crowdfunding funds raised in 2014. We assume that total crowdfunding
investments grow at a healthy 41% CAGR from 2014 to 2017 and forecast crowdfunding
dollar volumes raised in North America to grow to ~$26B by 2017. We assume that
crowdfunding growth rates remain healthy, but lower relative to marketplace lending
growth in consumer and small business loans due to the overall perceived risk of startups
and a less-diverse investor base. We also assume that North American growth rates are
relatively slower when compared to emerging platforms in Asia and Europe that are
growing faster.
August 2015
Exhibit 43
NORTH AMERICA CROWDFUNDING PLATFORM $ VOLUME RAISED

FORECAST (IN $ BILLIONS)
Sources: Crowdsourcing.org, Massolution, Piper Jaffray
Rest of world. We believe crowdfunding platforms have had particular growth success in
worldwide markets including Asia, Europe, and Latin America. In particular, developing
markets stand to benefit from crowdfunding as the ability to invest in local communities
becomes easier and more democratized through efficient crowdfunding platforms.
According to a report by The World Bank and the Information for Development Program
(infoDev) published in 2013, crowdfunding platforms in developing countries may reach an
estimated $90-96B funded globally per year by 2025. According to the report, the greatest
potential lies in China, which accounts for up to ~$50B of the total, with the rest of East
Asia, Central Europe, and Latin America/Caribbean also representing significant
opportunity.
Equity
Crowdfunding: A
New Avenue To
Invest In Startups
Equity crowdfunding enables startups and small businesses to raise capital through online
platforms from individual investors in exchange for shares of ownership in the company.
Startups and small businesses (SMB) often face challenges in securing capital to expand
their businesses. Many startups and SMBs often reach out to angel investors, venture
capitalists, community bank lenders, or even family and friends for capital. Equity
crowdfunding provides a new avenue for capital-raising, making it easier for smaller
companies to facilitate capital-raising from willing investors.
Recently enacted SEC equity crowdfunding regulations (known as Regulation A+) are
encouraging for startups and small businesses seeking funding. Until recently only
accredited investors (someone that makes over $200,000 in annual income or has a net
worth of over $1m) such as angel investors or VCs could invest in private startups through
crowdfunding platforms. Now, nonaccredited investors can participate in certain
thresholds of equity crowdfunding as well and benefit from the potential returns that the
investments can offer. This has diversified and increased the channels through which
startups can receive capital funding.
August 2015
Exhibit 44
EQUITY CROWDFUNDING GROWTH BY QUARTER (IN $ MILLIONS)
Sources: Crowdnetic, CrowdWatch, Piper Jaffray
Investors find equity crowdfunding attractive as platforms enable private equity-like

transactions on a much smaller scale, but offer returns that may exceed stock or fixed
income market returns. However, with greater returns comes higher risk as startup
investments are notoriously risky with the vast majority failing leaving investors
potentially left with nothing. Equity crowdfunding investments are further complicated by
the potentially difficult exit opportunities, given illiquid markets.
The Basic Mechanics
Of Equity
Crowdfunding
Equity based crowdfunding allows for entrepreneurs to raise funds by offering shares to
investors. The investor receives unlisted shares of the company, usually in its early stages, in
exchange for the money invested. Equity crowdfunding websites like Angel.ME provide a
platform through which a startup can present itself to potential investors. Startups typically
disclose their business plan, selected financial information, and the desired use of funds on
these platforms, enabling investors to search and research different investment
opportunities. Similar to other crowdfunding platforms, equity crowdfunding platforms
earn revenue by charging a success fee if the project is funded (as much as 5%+) as well as a
payment processing fee in some cases to cover the cost of transferring funds through
mediums like credit cards, etc. Many platforms do not charge startups any fee if their
campaign is not successful, and the committed investment dollars are returned to investors.
Recent Regulatory
Changes Serve As A
Catalyst: Reg A+
Recent SEC rules adopted in March 2015 came into effect in June and have made it easier
for companies to secure capital funding through equity crowdfunding, assuming they are
compliant with a specific set of laws and standards. According to Title IV of the 2012
Jumpstart Our Business Start-up (JOBS) Act, Regulation A+ enables companies to raise up
to $50m from unaccredited investors, which make up ~98% of the total investor base. The
new, SEC approved system allows for companies to test the waters of an equity sale by
gathering investment interest in a business after having a securities attorney perform due
diligence. If interest in the company is well received, a list of potential investors is compiled
(equity is not sold during the campaign) and a licensed broker dealer can sell the equity to
those investors.
August 2015
Exhibit 45
LIFECYCLE OF AN SEC REGULATION A+ CAPITAL RAISE

Step 1
Getting
Ready
Consult with a
specialized securities
attorney (or related
advisor) about
prepping company's
structure and
organization.
Step 2
Testing
the Waters
Publicize the potential
offering (for instance
through social media)
to collect expressions
of interest (nonbinding).
Step 3
Filing with
the SEC
Step 4
Conducting
the Offering
Step 5
Filing Ongoing
Reports
Select the type of

offering (Tier 1 or 2) for
the capital raise and
submit materials
through the SEC's
EDGAR online filing
system.
Once the filing has been

qualified by the SEC,
work with a licensed
broker-dealer to offer
the securities to
accredited and nonaccredited investors.
Depending on the type

of offering (Type 1 or 2),
continue filing ongoing
reports with the SEC
including financial and
current event reports.
Source: Piper Jaffray, SEC. Forbes
According to SEC Regulation A+, there are two tiers for small companies able to employ
crowdfunding as a capital-raising mechanism:
Tier 1 - For offerings of securities of up to $20M in a 12-month period, with not

more than $6M in offers by selling security-holders that are affiliates of the issuer
Tier 2 - For offerings of securities of up to $50M in a 12-month period, with not
more than $15M in offers by selling security-holders that are affiliates of the issuer
Both Tiers have similar requirements but Tier 2 investment requires further disclosure. It is
important to note that between the disclosure requirements, legal and administrative costs a
Regulation A+ equity capital raise may not be well suited for early stage startups but rather
for later-stage companies. A benefit from the rule is that businesses can take indications of
interest before committing to the time and expenses of a securities filing offering.
Importantly, non-accredited equity crowdfunding investors may not be able to sell their
shares if the selling shareholder accounts for more than 30% of the total dollar amount
offered in the Reg A+ offering. Shareholders who are not affiliates and have held their
shares for at least one year will generally be able to sell their shares under SEC Rule 144
without the need for any registration.
The new crowdfunding rules are designed to make it easier for startups and small
businesses to seek funding while also providing strong protection to investors. We believe
Regulation A+ creates significant opportunity for equity crowdfunding as investments are
no longer limited to accredited investors, increasing and diversifying the pool of potential
capital that a startup or small business can raise to expand its operations.
Crowdfunding
Market
Opportunities
Rather than replacing traditional banking and lending institutions, we believe equity
crowdfunding will become a useful tool for entrepreneurs and investors alike to expand the
channels of investable assets. The scope of equity crowdfunding is sizeable, yet limited
given that many institutional investors will not like the risk vs. reward of many of these
illiquid investments. The types of companies that will seek investments under Regulation
A+ from unaccredited investors may not be the same type of company that would typically
go public or be an acquisition candidate. The added complexity of limited exit
opportunities makes many of these risky startups less attractive for institutional investors
used to the traditional buyout or IPO monetization event.
However, we believe there is attractive potential as local investors (accredited or
unaccredited) focus on equity crowdfunded investments within their communities. Equity
August 2015
crowdfunding could serve as the vehicle through which local investors support and take
ownership in their community, benefiting from the rewards of a successful local enterprise.
Local startups like restaurants, gyms or local manufacturing could benefit from community
investor support and ownership. As such, we believe there is significant opportunity for
equity crowdfunding as a vehicle for capital raising in todays economy.
Challenges & Risks
To Crowdfunding
Platforms
While the advent of new equity crowdfunding platforms has created new avenues for
capital raising and investing, there are a number of factors and risks that should be
considered by both parties involved. Particularly, unaccredited investors may not fully
understand all of the risks and liabilities associated with ownership of small, volatile
startups. We highlight some of the key risks and challenges below:
Unclear exit opportunities for investors and businesses: Many of the businesses
requiring equity crowdfunding may not ever have the same exit opportunities as
other types of businesses. As such, investment returns may be more sporadic and
unpredictable. Startups and small businesses will need to prove that they have a
viable exit opportunity for investors that require a monetization event.
Illiquid market could make valuation and selling/transferring shares difficult:

Equity crowdfunding platforms facilitate an investment; however, a readily
available and liquid secondary market for equity crowdfunded investments by nonaccredited investors may not be available (though they may emerge as time passes).
Whereas traditional venture capital or private equity has sought buyout or IPO
exits, these types of investments may not see those kinds of opportunities.
Cost for startups may still be prohibitive: While relatively easier than a traditional
Initial Public Offering (IPO), equity crowdfunding can be expensive given the costs
to incorporate, legal fees, audit fees, and administrative fees. Many small startups
and small businesses may not be able to fund this kind of transaction, making
other forms of capital more attractive like marketplace loans or traditional
crowdfunding where the product or service is offered to investors.
Timing of funding may not be fast enough: The timeline for receiving funds
through equity crowdfunding could take several weeks if not months; small
businesses looking for fast funding may prefer to seek debt through an online
marketplace lender like Lending Club or OnDeck Marketplace. Online lending
marketplaces can typically fund loans in a couple of days, making the timing of the
funds received faster.
Less regulatory scrutiny could enable fraudulent fundraising: While rules and
regulations have been established under Reg. A+, time will tell if fewer
requirements lends to higher occurrences of fraudulent equity crowdfunding.
Traditional crowdfunding is also subject to fraud as individuals or donors put up
cash/donations for a project or idea that was never intended to come to fruition.
August 2015
Angel.Me

Type: Equity
Ownership: Private
Headquarters: Belgium
Domain: https://www.angel.me/
Company Description: Angel.me combines crowdfunding for startups, access to capital and
support services for entrepreneurs and innovators. The company offers a crowdfunding
platform where entrepreneurs can get access to seed capital and supporting services. Once a
project is submitted to the angel.me platform, it is screened by the team for compliance
with angel.mes terms and conditions. If the project has enough potential to get financing
through crowdfunding, the project is then featured online. When the targeted amount has
been funded, the funds are transferred to the entrepreneur and the project is considered as
fully funded. Angel.mes online platform, which is publicly accessible, offers entrepreneurs
a cost-effective and market-oriented method of attracting seed capital.
Founder: Bart Becks
Source:
https://www.angel.me/timeline/
https://www.crunchbase.com/organization/angel-me
AngelList

Type: Equity
Ownership: Private
Domain: https://www.angel.co
Company Description: AngelList is a community of startups and investors who make fundraising efficient. AngelList offers an online forum where startup founders can not only post
their ideas but also interact with investors for equity financing opportunities. Startups can
create a detailed profile on AngelList and pitch investors as well as financial firms.
AngelList itself handles the entire regulatory paperwork and charges a fee only when a
start-up is acquired or goes public.
Founder, CEO: Naval Ravikant
Co-Founder: Babak Nivi
Source:
https://www.crunchbase.com/organization/angellist
https://angel.co/
August 2015
AngelsDen

Type: Equity
Ownership: Private
Domain: http://www.angelsden.com/
Company Description: Angels Den matches growing businesses and entrepreneurs with
experienced angel investors to provide the investment and mentoring they need to grow
further and succeed. The crowdfunding platform enables angel investors and experienced
business people to invest in pre-vetted SMEs. Investors often play an active role in the
business, providing the initial funding, expertise and contacts to drive growth. Once an
anchor investor is on board, Angels Den can open funding to other angels and the crowd,
who have the security of investing alongside an experienced angel investor. As a result of
their approach, more than 94% of Angels Den funded deals are still trading. Since 2007,
Angels Den has helped more than 170 businesses raise investment from our crowd of
12,000 angel investors.
Founder, Position: Bill Morrow, CEO
Founder: Lois Cook
Source:
https://www.crunchbase.com/organization/angels-den
https://www.angelsden.com/guide/
appbackr

Type: Rewards
Ownership: Private
Domain: https://www.appbackr.com/
Company Description: appbackr is dedicated to advancing the mobile app industry by
creating a wholesale digital marketplace. By applying the time-honored wholesale model to
the digital age, the company solves common funding and distribution problems of
application developers. Appbackrs wholesale digital marketplace enables app developers to
find backrs who can help fund applications and drive sales. In its marketplace, a
developer receives payment from a backr for a designated number of app copies, done
through PayPal. When the purchased copies are downloaded in retail app stores, the
developer receives an additional payment and the backrs profit. appbackr collects a
commission fee based on a combination of factors including the stage of development and
price of the app sold in a retail app store.
Co-Founder, CEO: Trevor Cornwell
Source:
https://www.crunchbase.com/organization/appbackr
http://www.appbackr.com/about
August 2015
AppsFunder

Type: Rewards
Ownership: Private
Headquarters: Belgium
Domain: https://www.appsfunder.com/
Company Description: AppsFunder is an equity crowdfunding platform designed
specifically for apps. The site allows developers to pitch their great idea for the newest app,
and then screens on four categories: innovation, technology, business potential, and team.
Additionally, it makes publishing his/her new app on either Google Play or Apple Appstore
easy and the user is then able to track sales of the app to facilitate the payback payments to
the apps funders. AppsFunder uses PayPal for accepting pledges and grants refunds for
unsuccessful campaigns.
Founder: Herman Van Loo
Source:
http://www.appsfunder.com/us/how-it-works
https://www.crunchbase.com/organization/appsfunder
Bolstr

Type: Rewards
Ownership: Montage Ventures, Wilson Sonsini Goodrich & Rosati, Kapor Capital,
Merrick Ventures, DRW Venture partners
Domain: http://www.bolstr.com
Company Description: Bolstr is an equity funding marketplace wherein new consumer,
retail, and manufacturing businesses can raise capital from investors. What sets Bolstr apart
from many of its competitors is the fact that instead of having businesses give up equity, it
uses a Revenue Share Investment Structure whereby the monthly paybacks are proportional
to gross sales volume so that firms are never squeezed during seasonal sales cycles.
Co-Founder: Larry Baker
Co-Founder: Charlie Tribbett
Source:
https://bolstr.com/how-it-works
https://www.crunchbase.com/organization/bolstr
August 2015
Causes

Type: Charitable
Ownership: Brigade
Domain: https://www.causes.com
Company Description: Causes is an online campaigning platform that has raised more than
$48M for charities, 34M signatures for campaigns, and organized more than 1,000
awareness campaigns since launching in 2007. Users can create events to raise awareness,
advocate, or fundraise on the site for a variety of causes. In addition, it allows users to build
profiles to show other users exactly which causes they care about.
Co-Founder, Executive Board Member: Joe Green
Co-Founder, VP Engineering: Jimmy Kittiyachavalit
Source:
https://www.causes.com/team
https://www.crunchbase.com/organization/causes
CircleUp

Type: Equity
Ownership: Private
Domain: http://www.circleup.com/
Company Description: CircleUp is an online private company investment platform.
CircleUp provides accredited investors free access to direct investments in high-growth
consumer product and retail private companies that were previously difficult to identify and
access. For retail and consumer product entrepreneurs, they offer an efficient way to access
a network of sophisticated investors as well as value-added partners. Typical investments
on CircleUp are food, personal care, pet product, apparel or retail/restaurant companies
with >$500K in revenue and are looking to raise $100,000 to $2.0M in growth equity. A
highly selective percentage of companies that apply are listed on its site. Its investor base
includes retail and consumer product industry experts, venture capital, private equity, and
other financial professionals, business leaders, angel investors and others interested in
expanding its investment portfolios with private company investments. Investors can
review a curated list of private company investments, ask questions to the management
team, request product samples, and complete their private company investment online
through CircleUp. Companies pay a commission to CircleUp if the investment round closes
successfully.
Founder, CEO: Ryan Caldbeck
Founder, COO: Rory Eakin
Source:
https://www.crunchbase.com/organization/circleup
https://circleup.com/discovery/
August 2015
Crowdcube

Type: Equity
Ownership: Private
Domain: http://www.crowdcube.com/
Company Description: Crowdcube is an online crowdfunding service that enables
individuals to invest or loan small amounts in small companies in return for equity or an
annual return. It provides a platform for entrepreneurs of startups and growing businesses
to connect with potential investors, using the web-based notion of crowdfunding wherein
a community of like-minded people pool their money and knowledge together to back an
idea, business, or person. The U.K. Government-backed London Co-Investment Fund
(LCIF) now invests through Crowdcube in technology, digital, and science businesses based
in London. Investors have raised more than 80M for 250+ businesses since inception, with
Crowdcubes investor community reaching 180,000+.
Co-Founder, CEO: Darren Westlake
Co-Founder, CMO: Luke Lang
Source:
https://www.crunchbase.com/organization/crowdcube
https://www.crowdcube.com/faqs/
Crowdfunder

Type: Equity
Ownership: Private
Domain: https://www.crowdfunder.com
Company Description: Crowdfunder is a leading equity crowdfunding platform,
whose mission is to bring early stage financing to entrepreneurs and VC-backed deals to
accredited investors. It is where entrepreneurs can tell their story and raise investments
from a community of institutional and individual accredited investors. Crowdfunder has
developed a simple subscription model, where entrepreneurs can activate a Deal and start
taking commitments online from accredited investors; they do not take a percentage of total
money raised.
Co-Founder, CEO: Chance Barnett
Source:
https://www.crunchbase.com/organization/crowdfunder
https://www.crowdfunder.com/blog/about-crowdfunder/
August 2015
Crowdrise

Type: Charitable
Ownership: Private
Domain: http://www.crowdrise.com/
Company Description: Crowdrise is an online platform for individuals to set up P2P
fundraising, also described by co-founder Edward Norton as the Facebook for peoples
personal philanthropic agendas. As individuals make donations to the cause of their choice
using Crowdrise as the facilitator, Crowdrise charges transaction fees of 3%. Currently, the
site is used by The Red Cross, UNICEF, Boston marathon, Ironman, and 1.5M more
individuals.
Co-Founder, Position: Jeffro Wolfe
Co-Founder: Edward Norton
Co-Founder: Robert Wolfe
Source:
https://www.crowdrise.com/online-fundraising
https://www.crunchbase.com/organization/crowdrise
EarlyShares

Type: Equity
Ownership: Private
Headquarters: Miami, FL
Domain: https://www.earlyshares.com/
Company Description: EarlyShares is a leading online platform for private investing and
capital raising. EarlyShares connects individual investors to a curated selection of vetted,
return-driven investment offerings. On EarlyShares secure, compliant platform, accredited
investors gain direct access to opportunities in growth companies, real estate projects, and
investment funds. Issuers who qualify are selected to post their deals to the EarlyShares
platform, where investors can browse open opportunities and gain transparent access to the
information they need to make informed investment decisions.
Co-Founder, CEO: Joanna Schwartz
Co-Founder, CSO: Heather Lopes
Source:
https://www.crunchbase.com/organization/earlyshares
http://www.earlyshares.com/learn-more/about/overview
August 2015
EquityNet

Type: Equity
Ownership: Private
Headquarters: Fayetteville, AR
Domain: https://www.equitynet.com/
Company Description: EquityNet is a recognized pioneer in crowdfunding and has
operated one of the largest business crowdfunding platforms since 2005. The multipatented EquityNet platform includes more than 100,000 individual entrepreneurs and
investors, incubators, government support entities, and other members of the
entrepreneurial community. EquityNet provides access to thousands of investors and has
helped entrepreneurs across North America raise over $290M in equity, debt, and royaltybased capital. By combining their patented analytics, large proprietary business
benchmarking database, and market-leading standardization, EquityNet achieves a
superior experience for investors and a higher funding success rate for entrepreneurs.
EquityNet's patented Enterprise Analyzer technology enables entrepreneurs to analyze and
optimize their business plan before they engage investors. Investors and business supporters
in turn use EquityNet's advanced technology to efficiently screen and analyze businesses to
fund and support entrepreneurs.
President, CEO: Judd Hollas
COO: Amos Richards
Source:
https://www.crunchbase.com/organization/equitynet
https://www.equitynet.com/how-it-works.aspx
Experiment

Type: Charitable
Ownership: Private
Headquarters:
Domain: https://www.experiment.com/
Company Description: Experiment is an online platform for discovering, funding, and
sharing scientific research. Experiment enables scientists to raise funding for research
outside of the typical grant programs, by inviting backers into the process. After a new
project is shared on the platform, Experiments team rigorously reviews the projects based
on: researchers identity, project legitimacy, and if the project is capable of meeting the set
goals. According to the companys site, its funding has successfully led to more than 20
published papers. It currently charges 8% for funded projects in addition to payment
processing fees.
Co-Founder: Denny Luan
Co-Founder: Cindy Wu
Source:
https://experiment.com/how-it-works
https://www.crunchbase.com/organization/experiment
August 2015
FirstGiving

Type: Charitable
Ownership: Private
Domain: https://www.firstgiving.com/
Company Description: First Giving partners with nonprofits to help them execute and
monitor online fundraising campaigns. Its online platform has raised more than $1B from
13M donors that have given to at least one of the 8k nonprofits that use FirstGiving. In
addition to simply raising funds, FirstGiving allows fundraisers to gather data and reports
through Microsoft Excel to monitor the funds they have raised.
CEO: Karsten Robbins
Source:
https://www.crunchbase.com/organization/first-giving
http://info.firstgiving.com/about-us/overview/
Fundable

Type: Equity
Ownership: Private
Headquarters: Powell, OH
Domain: http://www.fundable.com/
Company Description: Fundable is a crowdfunding platform that allows startup companies
to raise money from a large base of investors in return for either rewards or equity.
Rewards consist of product pre-orders, unique gifts, or other incentives. Fundable uses an
all or nothing model wherein the company must meet its goal to successfully collect
funds. On the rewards model, Fundable charges a merchant processing fee of 3.5%
+$0.30/transaction. In addition, it charges $179/month to fundraise on its site.
Founder, CEO: Wil Schroter
Source:
https://www.crunchbase.com/organization/fundable-com#x
http://www.fundable.com/faq/how-fundable-works
August 2015
FundAnything

Type: Charitable
Ownership: Private
Headquarters: Park City, UT
Domain: https://www.fundanything.com/en
Company Description: FundAnything is a crowdfunding platform that helps facilitate P2P
financial support for any cause. The free service allows users to tell their story and goals
before using the sites other members to fund their goals. The service offers reward-based
funding as well as charitable giving. FundAnything charges a 9% fee on the contributions
collected, but it gives 4% back (for a total fee of 5%) if the goal is reached. Additionally,
payment processing costs an additional 3%/transaction.
Co-Founder: Scott Tilson
Co-Founder: Bill Zanker
Source:
https://www.crunchbase.com/organization/pleasefund
http://fundanything.com/en/how
FundersClub

Type: Equity
Ownership: Private
Domain: https://www.fundersclub.com/
Company Description: FundersClub is an online venture capital firm that enables its
members and accredited investors to invest alongside the top VC firms such as Khosla
Ventures and Y Combinator. Accredited investors simply have to review the different funds
to invest in startups such as Coinbase and Instacart. Minimum investments are typically
around $3k, or 8-30 times smaller than the typical angel investment.
Co-Founder, CEO: Alexander Mittal
Co-Founder, President: Boris Silver
Source:
https://support.fundersclub.com/hc/en-us/sections/200635447-FAQ
https://www.crunchbase.com/organization/fundersclub
August 2015
Funding Tree

Type: Equity
Ownership: Private
Domain: https://www.fundingtree.com/.uk
Company Description: Tree is the UK's first fully regulated crowdfunding and peer-to-peer
lending platform. Its platform helps investors earn great returns and businesses of any age
raise money to grow. The minimum investment is set at 50. The Funding Tree debt and
equity crowdfunding model enables investors to build hugely diverse portfolios comprising
either interest rate returns or business shares - or both. Additionally, the dual model enables
businesses to seek funding with them regardless of where they are in their lifecycle: from
start-ups seeking equity investment to get an idea off the ground, to growing businesses
requiring a loan to increase production, to established business looking to make a crowdfinanced acquisition.
Co-Founder, CEO: Dillen Iyavoo
Co-Founder: George Anastasi
Source:
https://www.crunchbase.com/organization/funding-tree-2
https://www.fundingtree.co.uk/crowd-funding-faq
FundRazr

Ownership: Private
Headquarters: Vancouver, Canada
Domain: https://www.fundrazr.com/
Company Description: FundRazr is a crowdfunding service provider that allows any person
or group to raise money for charitable, entrepreneurial, political, or simply personal
reasons. FundRazr accepts payments through multiple systems such as PayPal, credit cards,
and WePay. It offers charitable and reward methods, and campaigns are free to create.
FundRazr charges 5% on the money it collects as well as the payment processing fee of
2.9% + C$0.30.
Founder, CEO: Daryl Hatton
Source:
https://fundrazr.com/pages/learn-more
https://www.crunchbase.com/organization/fundrazr
August 2015
FundRise

Type: Equity
Ownership: Private
Headquarters: Washington DC
Domain: http://www.fundrise.com
Company Description: Fundrise is the leading online real estate investment crowdfunding
platform. Starting in 2010, Fundrise was the first company to take commercial real estate
public online and offer true equity ownership in local properties. Fundrise offers real estate
investments for both accredited and unaccredited investors, and allows real estate
companies to build their investment network and raise investment online through a full
service, web-based platform. Fundrise reduces the costs associated with traditional real
estate investment by cutting out unnecessary middlemen and making the process more
efficient. This innovative new model makes the process of investing in real estate simple
and more cost-effective, ultimately driving higher returns for investors. Fundrise focuses on
working with the best real estate companies in major metro markets, providing attractive
investment opportunities across the country.
Co-Founder, CEO: Benjamin Miller
Co-Founder, President: Daniel Miller
Source:
https://www.crunchbase.com/organization/fundrise
GiveForward

Type: Charitable
Ownership: Pritzker Group Venture Capital, Techstarts Chicago, First Round, Fire Starter
Fund, Founder Collective, Social Leverage
Domain: http://www.giveforward.com/
Company Description: GiveForward is a social crowdfunding sight for P2P payments.
Targeting toward individuals rather than non-profits, users are able to create a fundraising
page for someone they know who needs help covering medical costs, as an example. The
page Team Capitan can then spread the word through email, Facebook, and other social
media to gain support from family and friends. The funds raised can be dispersed on a
customizable time schedule. GiveForward charges 5% of the funds raised plus the 2.9%
+$0.30 transaction fees.
Co-Founder: Ethan Austin
Co-Founder: Desiree Vargas Wrigley
Source:
https://www.crunchbase.com/organization/giveforward
http://www.giveforward.com/learn
August 2015
GoFundMe

Type: Charitable
Ownership: Accel Partners, Greylock Partners, Iconiq Capital, Technology Crossover
Ventures, Meritech Capital Partners, Stripes Group
Headquarters: Pleasanton, CA
Domain: http://www.gofundme.com/
Company Description: GoFundMe is a crowdfunding platform that enables people to raise
money for different life events. In order to use GoFundMes platform, individuals simply
have to sign in to create a campaign, set a funding goal, share through their built-in
connections to Facebook and Twitter, and accept the funds through check or bank transfer.
Additionally, campaigners can post updates and send thank-you notes from the main
dashboard. Regarding pricing, GoFundMe charges a 5% fee on the money collected in
addition to a processing fee that varies country by country (USA is 2.9% +$0.30).
Co-Founder, CEO: Brad Damphousse
Co-Founder, CTO: Andrew Ballester
Source:
https://www.crunchbase.com/organization/gofundme
http://www.gofundme.com/tour/
Gust

Type: Equity
Ownership: Private
Domain: https://www.gust.com/
Company Description: Gust is a global platform for entrepreneurs to collaborate with
investors to fund new ventures. Gust enables skilled entrepreneurs to collaborate with the
smartest investors by virtually supporting all aspects of the investment relationship, from
initial pitch to successful exit. Gust is endorsed by the world's leading business angel and
venture capital associations, and powers more than 1,000 investment organizations in 75
countries. More than 300,000 start-ups have already used the platform to connect and
collaborate with more than 50,000 individual accredited investors. The company was
founded in 2004 under the name Angelsoft and is privately held. Gust is based in New
York, New York, with a European office in London, UK.
Founder, CEO: David Rose
COO: Rich LaFauci
Source:
https://www.crunchbase.com/organization/gust
https://gust.com/
August 2015
Healthios Xchange

Type: Equity
Ownership: Private
Domain: http://www.healthiosxchange.com/
Company Description: The HealthiosXchange is the premiere investment marketplace
dedicated exclusively to the global healthcare industry. Employing crowd funding as the
cornerstone of a new paradigm in healthcare investing, the HealthiosXchange offers direct
access to the broadest investment opportunities on a "Fee Free, Carry Free" basis in the
most trusted online environment. Combining full-spectrum social media with a FINRAcompliant transaction interface, the H/X brings 100,000 accredited investors together with
7,000 institutions, 5,000 emerging growth companies, 700 not-for-profits, and 2,000
strategic buyers to invest in the most compelling Emerging Growth Companies in the
world. The HealthiosXchange is an affiliate of Healthios Capital Markets investment bank,
a FINRA-regulated broker dealer based in Chicago, with offices in Boston, London,
Geneva, and Bangkok.
Chairman, CEO: David Loucks
Co-Founder: Frederick Reichenbach
Source:
http://www.healthiosxchange.com/pages/who-we-are
HoneyFund

Type: Charitable
Ownership: Private
Headquarters: Sebastopol, CA
Domain: http://www.honeyfund.com/
Company Description: HoneyFund is a Honeymoon Registry that couples can use to raise
fund for their honeymoon or other personal needs in lieu of taking wedding gifts. Similar to
other sites, campaigns simply create a page and start sharing with their family and friends
to begin fundraising. As of April 2015, the site had raised over $250M for nearly 400,000
couples seeking money to raise money. Payments are either processed offline or through
PayPal or WePay, which charge 2.8% fees.
Co-Founder: Sara Margulis
Co-Founder: Josh Margulis
Source:
http://www.honeyfund.com/honeymoon-registry#faq
August 2015
iFunding

Type: Equity
Ownership: Private
Domain: https://www.ifunding.com/
Company Description: iFunding is a real estate crowdfunding investment platform
company based in New York. Its technology brings together real estate investors and
reputable borrowers (Developers, Property Owners, etc.), so that they can mutually benefit
from a more efficient solution to investing in and raising money for real estate. Creating an
iFunding investor account is free and enables access to invest in real estate that is pre-vetted
by the iFunding team. Investors benefit from low minimums, starting at $5,000, compared
to $50,000 - $100,000 for traditional real estate investments.
Co-Founder: William Skelley
Co-Founder: Sohin Shah
Source:
https://www.crunchbase.com/organization/ifunding
https://www.ifunding.co/how-it-works-investors.php
Indiegogo

Type: Charitable
Ownership: Private
Domain: https://www.indiegogo.com/
Company Description: Indiegogo is a global crowdfunding platform that has had
campaigns launch from every country around the world. With campaigns ranging from
Alternative Radio station funding to a Scottish Independence political campaign, the site
supports all types of causes that need funding. Indiegogo offers two pricing models: flexible
and fixed. With the flexible funding model, clients keep the funds raised no matter what.
The opposite is true for the fixed modelclients can receive funds only if they meet or
exceed their initial goal. Fees include the standard processing fee of 3-5%, a $25 wire
transfer fee for non-US campaigns, a 4% platform fee, and up to another 5% fee if
campaigners do not reach their goal under the flexible model.
Co-Founder: Slava Rubin
Co-Founder: Eric Schell
Co-Founder: Danae Ringelmann
Source:
https://support.indiegogo.com/hc/en-us/articles/204456408-Fees-Pricing
https://www.crunchbase.com/organization/indie-gogo
August 2015
Invested.in

Type: Equity
Ownership: Private
Headquarters: Santa Monica, CA
Domain: https://www.investin.com/
Company Description: Invested.in is a leading provider of crowdfunding software solutions
to enterprise-level institutions. Its technology powers sites for companies like Coca-Cola as
well as entrepreneurs and non-profits. A main difference between this crowdfunding as a
service model and the standard fundraising platform is that these companies get their own
fully customizable and white-label websites that have the ability to scale with the business.
In addition to fundraising, Invested.in offers marketing and product development services
as well.
Co-Founder, President: Alon Goren
Co-Founder, CTO: Yadid Ramot
Source:
https://www.crunchbase.com/organization/invested-in
http://invested.in/about-us
InvestingZone

Ownership: Private
Domain: https://www.investingzone.com/
Company Description: InvestingZone is an equity crowdfunding platform allowing users to
invest in exciting, high-potential companies. Aimed at unlisted companies and professional
investors, the InvestingZone platform enables and stimulates entrepreneurship by
connecting investors to early stage companies that are in need of financing to help them
develop and grow. They provide a secure environment for companies raising investment to
manage shareholders, obtain shareholder votes, and perform investor relations and
network with internal and external stakeholder communities. Investors can build and
manage portfolios, vote online, track investment performance, make follow-on investments
and network using the platform messaging service directly with companies and
shareholders.
Co-Founder, CEO: Jean Miller
Co-Founder: Richard Brockbank
Source:
https://www.crunchbase.com/organization/investingzone
https://www.investingzone.com/
August 2015
KickStarter

Type: Reward
Ownership: Private
Headquarters: Brooklyn, NY
Domain: https://www.kickstarter.com/
Company Description: KickStarter is a funding platform for creative projects, ranging from
film and games to music, art, and technology. KickStarter campaigns are dedicated to a
concrete project goal, such as finishing an album or making a creative new film. The
funding platform is all or nothing, and can either be charitable or reward-based. Kickstarter
charges a 5% platform fee on top of the standard 3-5% payment processing fee. In 2014
alone, 3.3M people pledged $500M to fund over 22,000 projects.
Co-Founder, CEO: Yancey Strickler
Co-Founder, Chairman: Perry Chen
Co-Founder, Head of Design: Charles Adler
Source:
https://www.crunchbase.com/organization/kickstarter
https://www.kickstarter.com/help/faq/kickstarter+basics?ref=footer
MicroVentures

Type: Equity
Ownership: Private
Domain: https://www.microventures.com/
Company Description: MicroVentures is an equity crowdfunding platform that offers
investments to accredited investors in early stage companies. It is a FINRA registered
broker-dealer and the first to take a portfolio company to a successful exit. The process
begins when a company agrees to listing on the site, then MicroVentures performs
institutional-level due diligence on the company. In addition, it will individually value the
company to negotiate on investors behalf with the startups so their clients get the best
value.
Co-Founder, CEO: Bill Clark
Source:
https://www.crunchbase.com/organization/microventure-marketplace
https://microventures.com/about
August 2015
OneVest

Type: Equity
Ownership: Private
Domain: http://www.onevest.com/
Company Description: Onevest is one of the leading startup crowdfunding investing
platforms connecting early stage tech companies with accredited investors. The company's
mission is to democratize access to capital and investment opportunities in anticipation to
JOBS Act Title III, which will allow non-accredited investors to participate in private
offerings. This will effectively increase the target audience from 8m accredited investors in
US today to virtually anyone, on a $140B estimated market.
Co-Founder, CEO: Tanya Prive
Co-Founder, Chairman: Alejandro Cremades
Source:
https://www.crunchbase.com/organization/onevest
https://onevest.com/how-onevest-works
Patreon

Type: Rewards
Ownership: Stanford University, Index Ventures, Thrive Capital, SV Angel, Joshua Reeves,
Freestyle Capital, Atlas Venture, Rothenberg Ventures, Y Combinator
Domain: https://www.patreon.com/
Company Description: Patreon is a company that provides a fundraising platform for
content creators and their backers. Patreon enables fans and sponsors to tip artists and
creators for their work. It works by having funders set up a tip amount for each time the
creator releases new content. Lets say a comic writer publishes a comic book: he/she would
then be tipped immediately by his/her backers on Patreon. The site allows funders to set a
monthly maximum to make sure they stand under budget as well. The funding can either be
simply a donation or in exchange for special perks or rewards such as early song releases.
Co-Founder: Jack Conte
Co-Founder: Sam Yam
Source:
https://www.patreon.com/about
https://www.crunchbase.com/organization/patreon
August 2015
Prodigy Network

Type: Equity
Ownership: Private
Domain: http://www.prodigynetwork.com/
Company Description: Prodigy Networks crowd-investing model was developed as an
innovative way to give smaller investors access to large real estate assets. Prodigy gives
individuals the opportunity to invest as little as $10,000 in commercial real estate
investments that were previously available only to a handful of institutions and ultra-high
net worth individuals. They are headquartered in New York City and have offices in
Miami, Florida, Bogota, Colombia, and Montevideo, Uruguay.
CEO: Rodrigo Nio
COO: Bill Garcia
Source:
https://www.crunchbase.com/organization/prodigy
https://www.prodigynetwork.com/en/howitworks.aspx
Quirky

Type: Rewards
Ownership: Andreessen Horowitz, Norwest Venture Partners, Contour Venture Partners,
General Electric, Village Ventures, FreshTracks Capital, Kleiner Perkins Caufield & Byers,
RRE Ventures
Domain: http://www.quirky.com/
Company Description: Quirky is a company that provides a new type of socially developed
products. Inventors and product influencers come together on the site to build products that
can later be marketed to large retailers. Any of Quirkys members can submit ideas, help
other inventors ideas, or help determine which products Quirky will design, manufacture,
and sell. If the product is created and sold by Quirky, the inventor(s) will earn royalties
based on product sales.
Co-Founder, CEO: Ben Kaufman
Source:
https://www.crunchbase.com/organization/quirky
http://www.quirky.com/how-it-works
August 2015
Razoo

Type: Charitable
Ownership: Private
Headquarters: Washington DC
Domain: http://www.razoo.com/
Company Description: Razoo is a company that enables individuals to donate, raise funds,
and collaborate for charities and non-profits. Their platform allows people to set up a
fundraiser for a nonprofit of their choice, a personal fundraiser for yourself or someone
else, raise money as a team, or simply help spread the word about a good cause. In
addition, Razoo can help facilitate the setting up of giving days, which have raised over
$400M in more than 75 giving days. Razoo collects fees on the funds raised that differ
significantly based on the individual situation.
CEO: Tom Matthews
Source:
https://www.crunchbase.com/organization/razoo
Second Market

Type: Equity
Ownership: Private
Domain: https://www.secondmarket.com/
Company Description: SecondMarket simplifies private securities transactions. Its online
portal enables private companies and investment funds to customize, control, and
seamlessly execute primary and secondary transactions. SecondMarkets software solutions
facilitate the execution of private securities transactions, whether it be a primary capital
raise, private company secondary, or an M&A deal. Its solutions brings efficiency and
transparency to the transaction process, eliminating errors and saving companies, funds,
and attorneys time and money.
CEO: Bill Siegel
CTO: Michael Davis
Source:
https://www.crunchbase.com/organization/secondmarket
https://www.secondmarket.com/about
August 2015
SeedInvest

Type: Equity
Ownership: Private
Domain: http://www.seedinvest.com/
Company Description: SeedInvest is a startup investing platform that provides its members
access to vetted investments without charging fees or carried interest. SeedInvest actively
partners with investors such as Spark Capital and Index Ventures to promote transparency
and create a seamless experience for all parties involved. The typical company that will be
featured is looking to raise $100k-$5M in either seed, A, or bridge rounds that have at least
a prototype and a proof of concept. As of June 2015, both accredited and non-accredited
investors can make equity crowdfunded investments in private companies.
Co-Founder, Position: Ryan Feit
Founder: Homan Lee
Source:
https://www.seedinvest.com/faqs
https://www.crunchbase.com/organization/seedinvest
Seedrs

Type: Equity
Ownership: Private
Domain: http://www.seedrs.com/
Company Description: Seedrs is the leading European equity crowdfunding platform. It
allows anyone in Europe to invest as little as /10 into businesses they believe in. Seedrs
allows entrepreneurial European businesses -- from seed-stage to publicly-traded -- to raise
capital from friends, family, angels, institutions, and the crowds. More than 2M per
month is invested through Seedrs on average, and the company completes more deals per
month than any other European equity crowdfunding platform. Seedrs is a full-service
equity crowdfunding platform, offering document handling, admin, payments for investors
and businesses, ongoing investor relations and cross border/multi-currency support. Seedrs
is authorized and regulated by the UK Financial Conduct Authority. Seedrs plans to expand
its platform to the United States in the near future.
Co-Founder, CEO: Jeff Lynn
Co-Founder, COO, President: Carlos Silva
Source:
https://www.crunchbase.com/organization/seedrs
August 2015
SharesPost

Type: Equity
Ownership: Citrus Ventures, RightVentures
Domain: https://www.sharespost.com/
Company Description: SharesPost has created one of the largest, most active networks of
shareholders, investors, issuers and entrepreneurs by offering products and services for latestage, venture-backed private growth companies. With more than $2B in closed
transactions, SharesPost provides clients with access to information and liquidity.
SharesPost has established a joint venture with NASDAQ OMX Group to create NASDAQ
Private Market, the next-generation online platform to manage private securities
transactions. Whether a company seeks to optimize an eventual IPO or remain private
permanently, NASDAQ Private Market provides comprehensive capital market support to
meet its needs.
Founder, CEO, Chairman: Greg Brogger
Managing Director: Jennifer Phillips
Source:
https://www.crunchbase.com/organization/sharespost
StartEngine

Type: Equity
Ownership: Private
Domain: https://www.startengine.com/
Company Description: StartEngine is an online platform that allows companies to raise
capital by exchanging capital for shares or equity. Rather than asking friends, family and
fans to donate money to help individuals, StartEngine enables individuals to raise capital by
offering investment opportunities in the individuals company. StartEngines crowdfunding
platform operates under Title IV, or Reg A+. These rules allow privately held companies to
accept investments from both accredited and unaccredited investors. StartEngine takes a
modest administration fee of $20 per investor for facilitating the transaction which is
consistent regardless of the individual investment amount or the overall raise and is paid by
the company raising capital, not the investor. StartEngine also reserves warrants to
purchase stock in an amount equal to the total administration fees at the offering price
listed on StartEngine.
Partner: Ron Miller
Partner: Howard Marks
Source:
https://www.crunchbase.com/organization/startengine
August 2015
Wefunder

Type: Equity
Ownership: Private
Domain: http://www.wefunder.com/
Company Description: Wefunder is a crowd investing platform that offers capital-raising
services. Wefunder features the best new companies that are tackling important problems,
and introduces them to investors who help them with advice, connections, and investment.
Its software also automates the tedious parts of fundraising - contract signing, escrow
accounts, payment transfer, and automatic reminders. There is no cost to create a profile on
Wefunder, though a nominal admin fee between $1,000 and $3,000 is charged upon the
successful close of a funding transaction. To date, more than 42,000 startup investors have
funded 90 startups with over $11.5m.
CEO: Nick Tommarello
President: Mike Norman
Source:
https://www.crunchbase.com/organization/wefunder
https://wefunder.com/faq/common_questions
YouCaring

Type: Charitable
Ownership: Private
Domain: http://www.youcaring.com/
Company Description: Youcaring is a leader in crowdfunding for personal and charitable
causes. It works similarly to the other crowdfunding platforms in that it helps individuals
build pages for causes they want to fund and then shares that page with their network.
What separates Youcaring from the pack is its fee structure: Youcaring charges no fees for
its services, so the only fee collected is the processing fee, and the campaigns receive the
funds immediately once they are donated.
Co-Founder: Naomi Badu
Co-Founder: Brock Ketcher
Co-Founder: Luke Miner
Source:
https://www.crunchbase.com/organization/youcaring
http://www.youcaring.com/crowd-funding
August 2015
A P P E N DI X
Exhibit 46
COVERAGE UNIVERSE
Company
Diversified Financial Services & Technology Coverage Universe

Target Price
Target Price Justification
Symbol
Rating
V
MA
AXP
FLT
WEX
OW
OW
N
N
N
Financial Technology - Payment Neworks

27x CY16E EPS of $3.13
$85.00
27x 2016E EPS of $3.99
$108.00
14.0x 2016E EPS of $5.80
$81.00
21x adjusted 2016E EPS
$153.00
19.00x our 2016E adjusted EPS of $5.50
$104.50
Alliance Data Systems

Vantiv, Inc.*
Global Payments*
VeriFone Systems
Euronet Worldwide
Blackhawk Network Holdings
Heartland Payments*
Cardtronics
Green Dot
ADS
VNTV
GPN
PAY
EEFT
HAWK
HPY
CATM
GDOT
N
N
N
N
OW
N
OW
OW
OW
$295.00
$45.00
$116.00
$38.50
$75.00
$45.50
$75.00
$41.00
$24.00
Financial Engines
Charles Schwab^
TD Ameritrade^
Wisdom Tree^
Mitek Systems
Higher One
FNGN
SCHW
AMTD
WETF
MITK
ONE
N
OW
N
OW
N
OW
$45.00
$39.00
$43.00
$28.00
$5.00
$5.00
Visa*
MasterCard*
American Express
FleetCor
WEX Inc.
Financial Technology - Payments

17.1x 2016E Core EPS of $17.30
13.5x 2016E EV/EBITDA
13.5x CY16 EV/EBITDA Estimates
17.6x FY16E Non-GAAP EPS of $2.20
11.1x 2016E adj. EV/EBITDA of $355.2 ($123M in cash, 54.0M s/o)
17.5x FY16E adj. EPS of $2.60
13.0x 2016E EV/EBITDA (assumes $243M EBITDA, $520M debt, $134M cash & 37M s/o)
7.5x EV / 2016E adj. EBITDA of $327.2M (assumes $599M net debt and 45.7M s/o)
14.5x 2016E adj. EPS of $1.45 assumes $2.64 unencum. cash/share and 56.5M shares outstanding
Financial Technology - Other

1.43% 2016 AUM of $146.6B+ $5.92 cash/share and 53.6M shares outstanding
Based on 22x our '16E EPS
Based on 21x our calendar '16E EPS
Based on 5% 2Q16E AUM of $76.4B (136.9M s/o).
5.0x FY16E revenue of $27.2M assuming 31.6M shares outstanding
11.75x 2016E ad. EPS of $0.43
Money Transfer
Western Union
MoneyGram
WU
MGI
N
N
$18.50
$9.50
Encore Capital
ECPG
OW
$51.00
8.2x 2016E EV/EBITDA, assumes $2.095B net debt and 519.8M shares outstanding
6.5x 2016E EV/EBITDA assuming $909M net debt and 62.1M shares outstanding
Consumer Finance
8.8x 2016E EPS of $5.83
Mortgage/Real Estate Related

FNF
OW
$46.00
16x 2016E Title segment EPS + 15x BKFS 2016E EV/EBITDA
Realogy Holdings Corp*

RLGY
First American*
FAF
Black Knight Financial Services*
BKFS
CoreLogic*
CLGX
New Residential Investment*
NRZ
Ocwen Financial
OCN
PennyMac Mortgage Investment*
PMT
PennyMac Financial Services*
PFSI
Fidelity National Financial Ventures* FNFV
Altisource Residential
RESI
Altisource Portfolio Solutions
ASPS
OW
N
OW
OW
N
OW
N
OW
N
OW
OW
$57.00
$43.00
$35.00
$48.00
$17.00
$14.00
$17.50
$23.00
$16.00
$22.50
$46.50
12x CY16E EV/EBITDA based on $920M EBITDA, $3.2B Net Debt, $506M NPV of net oper losses & 147M shares
Fidelity National Financial*
15x 2016E adjusted EPS of $2.85

15x 2016E EV/EBITDA
13x 2016E D&A segment EBITDA + 10.5x 2016E TPS segment EBITDA
11.5% Dividend Yield on our '16 Dividend Estimate of $2.00
17.5x 2016E EPS of $0.80
0.85x 2015E book value of $20.54
9.0x 2016E EPS of $2.50
0.88x 2016E Economic Value of $18.70
1.0x book value of $22.46/share
9.5x 2016E adj EPS of $4.90

Bold text: Micheal Grondahl Coverage; *Jason Deleeuw Coverage; ^Jason Weyeneth Coverage
Sources: Piper Jaffray
August 2015
Important Research Disclosures

Notes: The boxes on the Rating and Price Target History chart above indicate the date of the Research Note, the rating, and the price target.
Each box represents a date on which an analyst made a change to a rating or price target, except for the first box, which may only represent the
first Note written during the past three years.
Legend:
I: Initiating Coverage
R: Resuming Coverage
T: Transferring Coverage
D: Discontinuing Coverage
S: Suspending Coverage
OW: Overweight
N: Neutral
UW: Underweight
NA: Not Available
UR: Under Review
Distribution of Ratings/IB Services
Piper Jaffray
IB Serv./Past 12 Mos.
Rating
Count
Percent
Count
Percent
BUY [OW]
418
59.21
98
23.44
HOLD [N]
270
38.24
12
4.44
18
2.55
0.00
SELL [UW]
Note: Distribution of Ratings/IB Services shows the number of companies currently in each rating category from which Piper Jaffray and its
affiliates received compensation for investment banking services within the past 12 months. FINRA rules require disclosure of which ratings
most closely correspond with "buy," "hold," and "sell" recommendations. Piper Jaffray ratings are not the equivalent of buy, hold or sell, but
instead represent recommended relative weightings. Nevertheless, Overweight corresponds most closely with buy, Neutral with hold and
Underweight with sell. See Stock Rating definitions below.
Analyst Certification Michael J. Grondahl, Sr Research Analyst

Analyst Certification Dain A. Haukos, Research Analyst
Analyst Certification Jason S. Deleeuw, CFA, Sr Research Analyst
Analyst Certification Eric M. Robinson, Research Analyst
The views expressed in this report accurately reflect my personal views about the subject company and the subject security. In addition, no part of my
compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this report.
Affiliate disclosures: This report has been prepared by Piper Jaffray & Co. and/or its affiliate Piper Jaffray Ltd., both of which are subsidiaries of
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Financial Conduct Authority, and is located at 88 Wood Street, 13th Floor, London EC2V 7RS. Disclosures in this section and in the Other Important
Information section referencing Piper Jaffray include all affiliated entities unless otherwise specified.
Piper Jaffray research analysts receive compensation that is based, in part, on overall firm revenues, which include investment banking revenues.
Complete disclosure information, price charts and ratings distributions on companies covered by Piper Jaffray Equity Research can be found on the Piper
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Piper Jaffray was making a market in the securities of American Express Company at the time this research report was published. Piper
Jaffray will buy and sell American Express Company securities on a principal basis.
Piper Jaffray was making a market in the securities of Euronet Worldwide, Inc. at the time this research report was published. Piper Jaffray
will buy and sell Euronet Worldwide, Inc. securities on a principal basis.
August 2015
Piper Jaffray was making a market in the securities of Financial Engines, Inc. at the time this research report was published. Piper Jaffray
will buy and sell Financial Engines, Inc. securities on a principal basis.
Piper Jaffray usually provides bids and offers for the securities of Heartland Payment Systems, Inc. and will, from time to time, buy and
sell Heartland Payment Systems, Inc. securities on a principal basis.
Piper Jaffray usually provides bids and offers for the securities of MasterCard Incorporated and will, from time to time, buy and sell
MasterCard Incorporated securities on a principal basis.
Piper Jaffray was making a market in the securities of MoneyGram International, Inc. at the time this research report was published. Piper
Jaffray will buy and sell MoneyGram International, Inc. securities on a principal basis.
Piper Jaffray was making a market in the securities of Visa Inc. at the time this research report was published. Piper Jaffray will buy and
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Piper Jaffray was making a market in the securities of Western Union Co. at the time this research report was published. Piper Jaffray will
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Underweight (UW): Anticipated to underperform relative to the median of the group of stocks covered by the analyst.
August 2015
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PiperJaffrayCompanies OverviewOfTheEvolvingFinTechLandscape Aug 23 2015

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Overview of the Evolving FinTech

Senior Research Analyst

Senior Research Analyst

We have identified six Financial Technology (FinTech) categories in which we believe

2 | Overview Of The Evolving FinTech Landscape

Piper Jaffray Investment Research

Fintech Innovation ............................................................................................................... 2

Fintech Private Companies ............................................................................................ 5

Piper Jaffray Investment Research Overview Of The Evolving FinTech Landscape | 3

Small Business Marketplace Lending Growth Forecast ............................................... 20

4 | Overview Of The Evolving FinTech Landscape

Piper Jaffray Investment Research

FINTECH PRIVATE COMPANIES

Bluefin Payment Systems

China Rapid Finance

Small World Financial Servies

The Currency Cloud

Source: Piper Jaffray

Piper Jaffray Investment Research Overview Of The Evolving FinTech Landscape | 5

RECENT FINTECH TRANSACTIONS

Source: Piper Jaffray, Company Filings, Company Websites

6 | Overview Of The Evolving FinTech Landscape

Piper Jaffray Investment Research

Top Venture Capital

Recent M&A/ IPO

NOTABLE FINTECH INVESTORS IN THE LAST YEAR

Corporate - Business management software

3 Vista Equity Partners

Corporate - SMB tax management software

Corporate - Prepaid/ financial payments

7 Capital One Financial

Corporate - Diversified financial services

Corporate - Commercial management

Source: Piper Jaffray, Company Filings

Piper Jaffray Investment Research Overview Of The Evolving FinTech Landscape | 7

8 | Overview Of The Evolving FinTech Landscape

Piper Jaffray Investment Research

Improving technology and open application programming interface (API). Over

Piper Jaffray Investment Research Overview Of The Evolving FinTech Landscape | 9

American Express: American Express (AXP, covered by Mike Grondahl) has

Series Investment Investment Description

Source: Piper Jaffray, Company Filings

10 | Overview Of The Evolving FinTech Landscape

Piper Jaffray Investment Research

TYPICAL MARKETPLACE LENDING PLATFORM DYNAMICS

Sources: Company Data, Piper Jaffray

Piper Jaffray Investment Research Overview Of The Evolving FinTech Landscape | 11

Some of the key marketplace lending differentiators include:

the technology/underwriting platforms that match borrowers and investors,

COMPARISON OF DIFFERENT TYPES OF MARKETPLACE LENDERS

Retail, Accredited &

Sources: Company Data, Piper Jaffray

12 | Overview Of The Evolving FinTech Landscape

Piper Jaffray Investment Research

We highlight below a couple examples of a marketplace lending transaction from Lending

EXAMPLE OF A TYPICAL LENDING CLUB MARKETPLACE TRANSACTION

Approved loan requests

Once a loan is fully funded

After the loan is issued, LC

LC manages and services

Sources: Company Data (Lending Club), Piper Jaffray

EXAMPLE OF A TYPICAL PROSPER MARKETPLACE TRANSACTION

Borrower creates a loan

Investors have 14 days to