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BFD Expert Voices - Private Credit

BFD Expert Voices

Cash-flow management firm Settle has secured up to $145 million in a new credit facility from Silicon Valley Bank, the startup tells Ryan exclusively.

Driving the news: The funds will be used to expand its ability to offer working capital to consumer brands and e-commerce businesses.

How it works: Settle provides a suite of cashflow-management tools, including bill pay, invoice tracking and accounts payable management, that are optimized to help e-commerce brands manage their finances.

Crucially, the startup also offers financing options to those businesses to bridge the gap between inventory purchases and product sales.

To date, the company has originated more than $1 billion of working capital loans.

Between the lines: The additional credit facility will let Settle expand the amount of financing it can offer and enable it to pursue larger customers.

"The last thing I want to do is work with someone that we got pretty early on and started scaling with them, then saying, 'We can't support you anymore,'" Settle CEO Alek Koenig says.

"This is key, so that we can go a little bit more upmarket with our more significant customers," he adds.

The company did not offer specifics on the size of financing it supports.

The intrigue: Although Settle began talking with SVB before its collapse, the deal was finalized in June — i.e., after the bank's sale to First Citizens Bank.

"At the time, we were just like, 'Well, this isn't going to happen, but we're so close to the finish line, let's just give it a shot,'" Koenig says. "It turns out, they were still 100% aligned and able to do it."

Of note: The new financing comes on top of a $280 million revolving credit facility from Citibank and Atalaya that Settle secured last year.

Settle has also raised $100 million in equity financing from investors that include Ribbit Capital, Kleiner Perkins, Caffeinated Capital, Stripes, Better Tomorrow Ventures, Founders Fund, SciFi Ventures, Citi Ventures and Activant Capital.

1 big thing: Settle books a $145M credit deal from SVB

Illustration of piggy bank with sunglasses. Dollar bills sticking out of the piggy bank.

Accelerant, an insurtech that offers underwriting software, is weighing an IPO or additional private share sale next year, CEO Jeff Radke told Reuters.

Why it's the BFD: Insurance companies have been among the most willing to test the IPO waters this year.

Background: Focused on specialty insurance, Accelerant last raised $150 million in December at a $2.4 billion valuation.

Its investors include Eldridge, Barings, Marshall Wace and Altamont Capital Partners.

The big picture: Radke’s comments come as risk has become a rising concern for insurers, with climate change-induced weather events throwing underwriting models out of whack.

At the same time, “Other firms in the industry have been looking to capitalize on rising prices for commercial insurance and reinsurance to attract new investors,” Reuters notes.

State of play: Skyware Specialty debuted as the year's first IPO, raising $134 million in January.

Fidelis followed in June, raising $210 million.

Now Hamilton Insurance Group is also said to be weighing an IPO, as is insurance broker Acrisure.

Accelerant mulling an IPO

2. The BFD: Accelerant mulls an IPO

Illustration of a $100 bill accelerating to warp speed

✂️ Sequoia cuts one-third of its talent team (Forbes)

Sequoia let go of seven employees in operations on Friday amid a broader restructuring. The move comes as some other venture investors, including Y Combinator and Anthemis, have pulled back.

🔎 JPMorgan's Greek fintech buy draws regulatory scrutiny (The Information)

JPMorgan agreed to buy 49% of Viva Wallet for $800 million last year. The acquisition has been under heavy scrutiny by regulators across Europe. The company has allegedly fired or pushed out compliance employees who had raised concerns about the business.

A number of regional banks reported earnings last week, and they lowered forecasts for loan growth or talked about building up capital levels by restricting share buybacks. 

⚖️ Blow for Flutterwave as court declines request to withdraw case (TechCrunch)

Kenya's Assets Recovery Agency last year froze $3 million belonging to Flutterwave, Hupesi Solutions and Adguru Technology over concerns of money laundering and fraud. Kenya's third-highest court has struck down an attempt to withdraw the case. 

3. Credit score

Illustration of a referee's hand holding a whistle and a red card that says "credit score."

Looking for more deal insights? Search the Axios Pro Deals Tracker beta.

• Mynd, an Oakland, California-based real estate investing company, raised $30m. Existing investor Invesco Real Estate led. https://axios.link/44EEGoZ

• Lumi, an Australian lender to small and mid-size enterprises, raised $15m. Investors included Harel Insurance and Finance Group, the Josh Liberman Investment Group, Arbel, Perennial and Stellan Capital. https://axios.link/3KdZSdn

• Giraffe, an impact investing platform for employees, raised $10.5m in seed funding led by Group 11, with participation from Altair Capital and angels. giraffe.us

• Sk3w Technologies, a Hoboken, New Jersey-based exchange auditing and data access company, raised $7m in Series A funding. Investors included Tower Research Ventures, IMC, and Citadel Securities. sk3w.net

• eflow Global, a UK-based regtech for financial institutions, raised £7m in Series A funding. Finch Capital led and was joined by Atempo and ScaleUp Group partners. https://axios.link/43FCTyw

• Gimo, a Vietnamese earned wage access startup, secured $17.1m in a mix of equity and debt financing. TNB Aura led, with Genting Ventures, TKG Taekwang, George Kent, and AlteriQ Global, Integra Partners, Resolution Ventures, Blauwpark Partners, ThinkZone Ventures and Y Combinator also participating. https://axios.link/3K8S3FJ

• Immediate, a Birmingham, Alabama-based earned wage access company, raised $16m in equity and working capital. Castle Creek Launchpad led. https://axios.link/43VGOaR

• GBST, backed by Anchorage Capital, acquired Advice Intelligence, an Australian provider of financial planning software solution. www.adviceintelligence.com

• Medius acquired Expensya, a Tunisian expense management software company backed by Endeavor Global, ISAI and Bpifrance. https://axios.link/3Y6PVUy

4. Deals!

• Tom Gould joined Finery Markets as the company's director of strategic partnerships. https://axios.link/3rK70aX

• Dan Macklin, a Sofi co-founder, joined student loan company Summer as president. www.meetsummer.com

• Sean Minnihan, previously with Nomura, joined Oppenheimer & Co. as head of financial technology investment banking. https://axios.link/44CEg2v

• Brian Muse-McKenney is joining Episode Six as its first chief revenue officer. episodesix.com

• Peng Yang, Ant Group senior vice president, has been named president of the company's international business group. https://axios.link/44Wm5Ez

5. It's personnel

🤷 Situational awareness: The app formerly known as Twitter might become a fintech?

🏃🏻‍♀️ @Lucinda managed to do a run for the first time after injuring her ankle a few months ago. 

⚾ @Ryan is bummed out by the Phillies' recent rough stretch.  

Thanks to George Moriarty and Rob Reinalda for today's edits.

And thanks to you for reading. Please tell your fintech friends about this newsletter. They can sign up here. 

July 25, 2023

1 big thing: Settle books a $145M credit deal from SVB