Investors expect funding activity to rebound in 2024 following a year of uncertain macroeconomic conditions. 

In 2023, global fintech equity deals amounted to $39.2 billion, compared to $78.6 billion in 2022, recording a 50% year-over-year drop, according to a Jan. 18 State of Fintech report by CB Insights, a data intelligence company.

In Q4, only $8.5 billion was invested via equity deals in fintechs, down 21% YoY, the report stated, adding that fintech funding in the United States in the fourth quarter stood at $3.7 billion, down 13.9% YoY. 

Fintech funding has been sliding since Q3 2022, according to CB Insights, as high rates have affected venture capital activities. 

VC insight

However, Brian Kaas, president and managing director at TruStage Ventures, told Bank Automation News that in 2024: “We are expecting to see some increased activity on the venture side.” 

“The last two years created a very challenging environment with the rapidly rising interest rates and all of the volatility that came along with that,” which has impacted fintech funding adversely, Kaas said. 

According to the company’s website, in 2023, TruStage Ventures invested in the following fintechs: 

• Safety management software provider Salus Technologies; 
• Personal loan fintech Happy Money; and 
• Real-time lender Momnt. 

Recent raises

The following fintechs raised funds in the past month, despite facing macroeconomic headwinds and low funding activity. 

Overflow raises $20M in series B

Overflow, which operates a charity and donations platform, announced Feb. 7 that it raised $20 million in series B funding, led by Wesleyan Investment Foundation. 

The San Francisco-based Overflow connects donors with nongovernmental organizations (NGOs) and churches to facilitate charity giving in the form of crypto, stocks and cash, according to the company’s website.  

While the fintech revolution has helped many segments of society, the nonprofit and faith spaces have not been able to benefit, Chief Executive Vance Roush told BAN. 

“These funds will be going directly to our work to build out a comprehensive financial operating system for the faith space and beyond, including products that enable things like AI-generated recommendations for donor development based on unifying all of your financial data in one platform,” Roush said.  

“We are working to become a sort of Brex for churches, and we look forward to digging into the development of a full suite of products to superpower finance teams at these organizations.” 

ACH and card donations are still the most common, but non-cash assets, such as stocks and crypto, have “proven to be catalytic,” Roush said. 

Kashable raises $25.6M in series B

Kashable raised $25.6 million in a series B funding round led by Revolution Ventures and Moneta Ventures, according to a Jan. 18 release.  

Kashable aims to use the money to “accelerate the development of additional financial wellness services” and “grow its research and development technology team,” co-founder and Chief Executive Einat Steklov told BAN. 

The company provides easy access to credit to its clients’ employees and can integrate its offerings in a business’s operations so that employers can extend credit to employees, Steklov said. 

“We integrate seamlessly with employer Human Resource Information Systems (HRIS) and payroll systems — enabling quick access to affordable loans that are automatically repaid through payroll without much of a lift to the employers,” Steklov said. 

In 2023, the company recorded a 20% growth in loans originated and added 60,000 employees to the platform, Steklov said. 

The company has raised more than $121 million since its inception in 2013, according to Crunchbase. 

Finally nabs $10M in venture funding

Small- and medium-business financial management service provider finally raised $10 million in a venture round on Feb. 6, according to a company release. 

The Miami-based fintech provides services that include bookkeeping, expense management, bill payment and payroll on one platform.  

The company is also building an AI-driven ledger to help customers keep better track of their expenses and reduce labor associated with filing expense reports. 

The funds, raised from PeakSpan, will be used to expand finally’s customer base and services to grow operations, Felix Rodriguez, founder and chief executive of finally, said in the release. 

Since its inception in 2018, finally has raised $109 million in funding, according to Crunchbase. Its enterprise partners include Stripe, PayPal and Square. 

KlariVis raises $11M in series B funding

KlariVis, a data management technology company, nabbed $11 million in series B funding from Blueprint Equity, according to the company’s Jan. 11 release. 

KlariVis works with community banks with asset sizes of less than $10 billion to aggregate their data and provide one dashboard to monitor the financial health of the organization, Chief Executive Kim Snyder told BAN. 

The funding will be used to improve the product, incorporating new features that clients want and “move into the world of predictive analytics, and help banks really leverage their data in order to get to revenue opportunities,” Snyder said. 

The company is looking to generative AI to create predictive models to analyze customer transactions and behaviors to improve customer retention, Snyder said. 

The Roanoke, Va.-based company also aims to use the funds to grow its own customer base, Snyder said. KlariVis announced in a release that it signed its 100th financial institution customer in January. 

The $3.2 billion Bank of Tampa, $6 billion United Fidelity Bank and $1.8 billion FNCB Bank are KlariVis customers, according to the company’s website. 

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