All Access

Fintech Deals

Standard

Fintech Deals Alerts

Alert

Fintech Deals Thought Bubble

Thought Bubble

mustard

BFD Expert Voices - Private Credit

BFD Expert Voices

Bitstamp, among the oldest crypto exchanges on the market, is looking to raise $50 million, chief commercial officer and U.S. CEO Bobby Zagotta told Lucinda.

Why it matters: Now that FTX is out of the picture and Binance is battling legal issues, Bitstamp sees a chance for it to grow market share outside the U.S.

Driving the news: Bitstamp is in "active talks" to raise capital to boost its operations in Europe, Zagotta said on the sidelines of the Money20/20 conference in Las Vegas.

About 65% of the firm's revenue stems from the continent, which remains the company's priority — especially amid U.S. regulatory uncertainty over crypto.

"Europe is the most important market for us right now," he says. "We do think we can go faster."

The firm this year announced plans to exit Canada, and it stopped its crypto staking services in the U.S.

Details: Bitstamp has roughly 5 million global users and is focused on institutional investors.

Founded in 2011, it has been surpassed in recent years by later entrants like Binance and Coinbase in terms of trading volume.

Background: Zagotta said the talks had not reached the point of determining a valuation.

Belgium-based investment firm NXMH, which is backed by South Korea's NXC, acquired a majority stake in the company in 2018.

That deal valued the company around $400 million, says Zagotta.

Ripple bought a minority stake in the business this year, taking shares owned previously by Pantera.

1 big thing: Bitstamp seeks $50M for post-FTX expansion

Illustration of a pixelated coin sticking out of a pixelated wallet.

Boundless Rider, an insurtech focusing on motorcycle and other powersports riders, raised $4.25 million in new funding from Assurity Life Insurance and existing investors, the company tells Ryan exclusively.

Why it's the BFD: There are roughly 20 million powersports vehicles in the U.S., but the market remains underserved. 

How it works: Boundless Rider is a full-stack managing general agent (MGA), and manages everything including the collection of application data, underwriting, generating policy documents, claims and billing.

The company designed its insurance product specifically for owners of powersports vehicles — such as motorcycles, ATVs, UTVs, scooters and mopeds.

Zoom out: There are about 20 million powersports vehicles in the U.S., but typically they only account for 3% to 5% of an insurance carrier's book, says Boundless Rider CEO Blair Baldwin.

"If 95% of your business is this one thing ... you're going to invest all of your time and resources into the main [product]," he says. "Because of that, there's just been very little product innovation in the motorcycle and powersports space."

Zoom in: One development is a mobile app that Boundless Rider will use to collect trip and behavioral data.

Auto insurers have been experimenting with these data for over a decade, but it hasn't yet made its way to powersports coverage.

They're also developing a proprietary crash algorithm for the app that could connect to a call center for triage to reach 911 in the event of an accident.

In addition to adding Assurity to its cap table, Boundless Rider has partnered with the carrier to offer accidental death and dismemberment insurance to its policyholders.

"The folks that underwrite motorcycle insurance ... look at it from the lens of just property and casualty insurance and don't recognize the risk of life or disability that comes from these vehicles," Baldwin says. "Which is one of the reasons we felt it was really important to bring a life and health insurance carrier into the mix."

State of play: After getting its start in Texas, the company now also serves Arizona.

It has received approval and plans to launch in Ohio, Illinois, and Pennsylvania in the coming months.

Of note: Existing backer American Family Ventures led the round, which included investment from Belmont Capital.

Altogether, the company has raised $11 million since being founded in 2021.

2. The BFD: Powersports insurtech exclusive

⚖️ Gemini is suing Genesis in GBTC collateral dispute (Axios)

The exchange owned by Tyler and Cameron Winklevoss sued bankrupt lender and former partner Genesis, asking the court to determine the rightful owner of GBTC shares that are now worth some $1.6 billion, Axios Crypto's Crystal Kim writes.

Following the $40 billion Luna stablecoin crash, Kwon hopscotched across Asia and Europe to evade authorities. The WSJ details the search for Kwon by U.S. and South Korean authorities and his arrest at a Montenegro airport.

🗓️ Synapse has two months to find new bank partner (Forbes)

Evolve Bank and Trust cut ties with the Banking as a Service company, leaving Synapse with two months to find one or more FDIC-insured banks to act as its partner.

Synapse also allegedly has a $14 million hole in one of its accounts, caused in part by its having six FBO accounts for roughly 40 clients rather than one for each.

🏦 Elon Musk says X will replace your bank (The Verge)

X is working to get money transmission licenses across the US. Musk also seeks to secure other equisite licenses needed.

3. Credit score

Illustration of a Scrabble board with letter tiles spelling "credit."

Want more fintech deals? Check out the Axios Pro Deals Tracker beta.

• Monzo, a U.K.-based digital challenger bank, is in talks to sell a £300m stake at a £3.5b valuation, per Sky News. https://axios.link/3SeJ5vt

• AgentSync, a Denver-based provider of compliance software for insurers, raised $50m in Series B extension funding co-led by insiders Craft Ventures and Valor Equity Partners, per TechCrunch. https://axios.link/478jF6H

• Omnidian, a Seattle-based provider of asset management software for commercial and residential solar, raised $25m from Activate Capital, Wind Ventures, Avista Corp., Evergy Ventures, National Grid Partner, Congruent Ventures, Blue Bear Capital and HSBC. https://axios.link/49bWudF

• Railsr, the U.K.-based embedded finance startup, has struck a deal to raise $24m from existing investors, including D Squared Capital and Moneta Venture Capital, per Sky News. The new funding comes six months after Railsr was forced into insolvency.  https://axios.link/45QadE4

• Twinco Capital, a Spanish supply chain capital provider,  secured a debt facility of €50m from BBVA Spark. https://axios.link/3sarKcm

• Canaccord Genuity (TSX: CF) is considering a takeover bid for the wealth management arm of Close Brothers (LSE: CBRO), which is being auctioned in a Goldman Sachs-led process, per Reuters. https://axios.link/3FzKDII

• AU Small Finance Bank acquired Fincare Small Finance Bank, an Indian microfinancing bank, in an all-stock deal worth 44.11b rupees ($529.8m). https://axios.link/3MjKAo8

• Unita Capital, a wholly owned subsidiary of Thailand's Kasikornbank (aka K-Bank), agreed to acquire a 97% stake in the parent firm of local crypto exchange Satang for 3.7b Thai baht (~$102.8m). https://axios.link/3QdlU21

4. Deals!

• Saleem Arshad, a former Revolut India executive, joined Saudi Arabia fintech Hala as CTO. https://axios.link/3QzvKN4

5. It's personnel

Situational awareness: Sam Bankman-Fried is expected to testify again today.

🔪 @Ryan has been watching slasher films to celebrate Spooky Season.

📺 @Lucinda is watching "How to Get Away with Murder."

😱 @George has some concerns about what these people are watching ...

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.

October 30, 2023

1 big thing: Bitstamp seeks $50M for post-FTX expansion