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Loop, a startup operating a payments platform for the shipping and logistics industry, has raised $30 million in total funding, Ryan writes.

Why it matters: The company is bringing a modern payments technology stack to an industry still heavily reliant on physical paperwork.

What it does: Loop operates a payments platform that brings more transparency to shippers, carriers, and third-party logistics (3PL) firms, while helping them get paid more quickly.

The company digitizes operations through APIs that ingest data from logistics firms’ existing systems.

Using natural language processing and computer vision, it then automates document capture, invoice management, and compliance into a single platform.

Between the lines: Loop claims that, by digitizing logistics operations, it can reduce invoice errors from 20% to near zero and reduce the clearing time for invoices from 50 days to 3 days.

The company takes a small percentage of all transactions that go through its platform and says it has processed over $1 billion in payment volume in the past year.

What’s next: Loop could provide working capital or advances based on invoices not yet paid.

Of note: Loop was founded by engineers, payments experts and data scientists from Uber Freight and Flexport, and funding was spread across two rounds before coming out of stealth.

Its seed round was led by 8VC and Susa Ventures, while Founders Fund led its Series A financing.

Other investors include Expa, FourMore Capital, Lineage Ventures, Flexport, Nichole Wischoff, 9Yards Capital, McVest Co, Saltwater, Mark Pincus and OEL Ventures.

1 big thing: Modern payments for an old school industry

Illustration of a giant freight ship leaving a wake in the shape of a dollar sign.

Bakkt announced Thursday that it has agreed to acquire Apex Crypto in a deal that could be worth up to $200 million, Ryan writes.

Why it matters: The acquisition will enable Bakkt to expand its offerings beyond its consumer business to serve more fintechs, trading apps and neo-banks.

Details: Bakkt is acquiring the crypto custody and clearing business from Apex Fintech Solutions and has agreed to pay $55 million in cash at the close of the deal.

Bakkt will be on the hook for an additional $45 million in stock if Apex Crypto hits certain financial targets in the fourth quarter of 2022, as well as $100 million in stock and seller notes if the unit reaches certain targets through 2025.

The deal is expected to close in the first half of 2023.

Between the lines: According to the announcement, Apex Crypto serves more than 30 fintechs and their customers.

As part of the deal, the unit will continue to offer custody and clearing services to Apex Fintech's clients under a commercial agreement.

2. The BFD: Bakkt to acquire Apex Crypto

Illustration of a pattern of hands trading tokens.

Crypto political giving falls, right before midterm elections (Bloomberg)

Campaign-finance filings with the FEC show political spending from crypto executives slowed significantly during the final stretch of the midterm election races.

Crypto has given around $5 million or less each month since July, with September’s $3.9 million representing a 63% drop from $10.4 million in June.

Cathie Wood bets Elon Musk will turn Twitter into a ‘super app’ (CNBC)

“He’s thinking about a super app like WeChat Pay,” the Ark Invest founder said at Web Summit. Wood said Ark invested in Twitter as part of Musk’s $44 billion deal to take the company private.

Robinhood beats estimates, stock pops at the open (Yahoo)

Transaction-based revenue dropped 22% to $208 million but that was offset by lighter expenses and the company beat expectations, with shares popping 10% at one point this morning. 

Crypto fund-of-funds Protocol Ventures is shutting down (Bloomberg)

Protocol plans to close and return cash to investors by year-end or the first quarter of 2023, Bloomberg reports. Investors in Protocol’s fund of hedge funds may have lost as much as 90% over the past year.

Stripe CEO pens letter to employees regarding job cuts (Stripe) 

Patrick Collison writes about the "hardest change" the company has made, laying out a 14% headcount drop and taking responsibility, along with his co-founder and brother, John, for the decision. 

3. Credit score

Illustration of positive and negative trend lines coming out of center point.

• Zest AI, an automated underwriting startup, raised $50m in funding led by Insight Partners and CMFG Ventures, with participation from CU Direct, Curql, Suncoast Credit Union, Golden1 Credit Union, Hawaii USA Federal Credit Union and NorthGate Capital. https://axios.link/3fsauZV

• Fintecture, a French B2B payments digitization startup, raised €26m in Series A funding from Target Global, Eurazeo, RTP Global, Samaipata, Allianz Trade and Société Générale. https://axios.link/3Ta7nni

• Dropit, a London-based retailer inventory unification platform, raised $25m in Series C funding. Vault Investments led and was joined by Tiga Investments, Axentia, Sugarbee and ex-Macy’s CEO Terry Lundgren. https://axios.link/3DxWMwy 

• WalletConnect, a web3 communications protocol, raised $12.5m from Shopify, Coinbase Ventures, ConsenSys, Circle Ventures, Polygon, Uniswap Labs Ventures, Union Square Ventures, 1kx, HashKey and Foresight Ventures. https://axios.link/3U3guHy 

• InterPrice Technologies, a New York-based capital markets funding platform, raised $7.3m in Series A funding led by Nasdaq Ventures and DRW Venture Capital, with participation from Bowery Capital. https://axios.link/3DXgiEf

• Perpetual (ASX: PPT). an Australian wealth manager, rejected a A$1.7b takeover offer from EQT Barings Private Equity and Regal Partners. https://axios.link/3ftVzOH 

• Robinhood will not close its acquisition of U.K.-based crypto startup Ziglu this quarter, CFO Jason Warnick said on the company's third-quarter earnings call. https://axios.link/3WpUjNk

4. Deals of the day

• Edison Partners, a growth equity investment firm, appointed Rush Baker as head of investor relations and Casey Myers as head of Edison Edge. www.edisonpartners.com

• Coinbase’s chief product officer, Surojit Chatterjee, stepped down on Oct. 28 as part of a reorganization, according to an SEC filing. https://axios.link/3FGVNwG

• Online banking startup Chime is laying off around 150 people, or 12% of its 1,300-person workforce, The Information reports. https://axios.link/3Wt01xI

• Real estate technology firm Opendoor is letting go of about 550 people, or 18% of the company, CEO Eric Wu announced in a blog post. https://axios.link/3h8tSM0

• NFT startup Dapper Labs laid off 22% of staff, or about 135 employees. https://axios.link/3Ww4oYX

5. It's personnel

Situational awareness: Today's the day! Join us for an exclusive, live conversation with eToro U.S. CEO Lule Demmissie @ 1pm ET. RSVP here. 

✏️ Thanks to Michael Flaherty for editing and Carlos Cunha for copy editing this newsletter.

And thank you for reading Axios Pro Fintech Deals! Please ask your friends, colleagues, and 3PLs to sign up!

November 03, 2022

1 big thing: Modern payments for an old school industry