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BFD Expert Voices - Private Credit

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Future, a climate-focused fintech, has raised $6.5 million in new funding and acquired a startup to expand its rewards platform, the company tells Ryan exclusively.

Details: The financing comes from a mix of new and existing investors and was raised in part to acquire Fan Rewards, a Boston-based rewards platform for fans of artists and influencers.

As part of the acquisition, Fan Rewards founders Kendall Tucker and Mike Garon will join Future as head of product and head of engineering, respectively.

Between the lines: The deal is designed to help Future attract more users to its rewards program, according to Future co-founder and CEO Jean-Louis Warnholz.

"A big piece of what we are building now is just creating an outrageously rewarding experience for our members," he says.

"The work Mike and Kendall had done at Fan Rewards was a perfect fit because they've identified novel and interesting ways to reward fans of digital creators."

Context: Future offers a debit card that rewards users when they make low-carbon, eco-friendly purchases — such as EV charging, public transportation, plant-based meat and secondhand clothes — as part of their everyday spending.

It offers 10% cash back on renewable-energy purchases, partners with eco-friendly brands to offer discounts on their goods, and operates a marketplace of sustainable goods with increased rewards.

It also provides tools to help users understand their carbon footprint and earn cash for reducing it.

Zoom in: Future developed a data-driven platform on the back end that digitally captures and verifies greener purchases across a variety of merchant codes.

"There is no payments platform that is purposefully designed to help decarbonize our economy," Warnholz says.

"To do that right, you have to have a data platform to incorporate carbon, not just as a signal in the payments data, but to be able to identify and reward green choices."

Of note: To date, Future has raised $11 million from investors that include Accomplice, Active Impact Investments, Climate Capital, Techstars, Baratunde Thurston, Raiz Capital and Urban Impact Ventures.

1 big thing: Investing in Future

Illustration of a credit card in the shape of the world

💰 Crypto leaders build $78 million war chest for 2024 (Axios)

Coinbase, a16z, the Winklevoss twins and others are pouring cash into super PACs aimed at growing the ranks of crypto-friendly lawmakers on Capitol Hill.

📈 Robinhood woos wealthier clients from bigger brokerages (WSJ)

The trading app said it had received about $1.1b in account transfers since Oct. 23, when it began offering a 1% match on transferred brokerage accounts. 

In the second and third quarters of this year, customers transferred about $350m and $375m, respectively, to Robinhood from other brokerages, according to company filings.

🏛️ SafeMoon files for bankruptcy after U.S. lawsuit (Bloomberg Law)

The crypto firm filed for bankruptcy in a Utah court on Thursday, a month after executives were accused by federal prosecutors of using millions of dollars of investor funds to buy luxury homes and sports cars.

💸 Why it's taking so long for Americans to get instant payments (WSJ)

Roughly five months after the Federal Reserve launched its instant-payments system, the number of lenders plugged into the network has risen to more than 300 from about 35. But Fed officials acknowledge it will still take years before instant payments become widely available. 

❌ Qredo's Ankex exchange shutters (CoinDesk)

The derivatives exchange, which was launched last year by custody firm Qredo and headed up by former Genesis Trading CEO Michael Moro, has closed its doors.

2. Credit score

Illustration of an exam answer sheet with the words "credit score" hand written in red ink.

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

• Tamara, a Saudi BNPL platform, raised $340m in a Series C financing round valuing it at $1b. SNB Capital and Sanabil Investments led and were joined by Shorooq Partners, Pinnacle Capital, Impulse and others. https://axios.link/47WidoW

• Smartpricing, an Italian hotel revenue management software maker, raised €13m in Series A funding led by Partech. https://axios.link/3RLxeEs

• Tap Protocol, a bitcoin ordinals-based development platform created by Trac Systems, raised $4.2m in a round led by Sora Ventures. https://axios.link/3Ruu5Yo 

• Salv, an Estonia-based AML software maker, raised a €3.9m extension round. Investors include ffVC and German G+D Ventures. https://axios.link/3NAy7x5

• Blackstone, CPPIB and Rialto Capital agreed to acquire a 20% stake in a $17 billion portfolio of commercial property loans of failed Signature Bank from the FDIC for around $1.2b. https://axios.link/3GMT3x2

• TMX Group, operator of the Toronto Stock Exchange, has taken full ownership of VettaFi after acquiring a remaining 78% stake in the firm for C$1.15b ($848 million). https://axios.link/48jg3Q4

• Visa (NYSE: V) has agreed to acquire a majority interest in Mexican payments processor Prosa, which was owned by a consortium of banks including Grupo Financiero Banorte and the local arms of HSBC and Banco Santander. https://axios.link/4aq1An7

• Global Payments (NYSE: GPN) of Atlanta is considering a takeover bid for Pennsylvania-based rival Shift4 Payments (NYSE: FOUR), per Bloomberg. https://axios.link/3tloxqW

• Webster Financial (NYSE: WBS) agreed to buy Ametros Financial, a Burlington, Mass.-based custodian and administrator of medical funds from insurance claim settlements, from Long Ridge Equity Partners. www.ametros.com 

3. Deals!

• Nichole Mustard, co-founder and chief revenue officer at Credit Karma, is leaving the company after 16 years. https://axios.link/3tkKW7Y

• Eric Wu, co-founder and former CEO of Opendoor, is stepping down. https://axios.link/48kqm6h

• Dan Schulman, former CEO of PayPal, will leave the company's board at the end of the year. https://axios.link/481YqnY

• Ryan Moore has stepped down as a co-founding partner of Boston-based VC firm Accomplice, according to an investor email obtained by Axios. https://axios.link/471JCom

• Bolt, a one-click checkout startup that has raised nearly $1b, has laid off 29% of its staff. https://axios.link/4aq769p

• Flyhomes, a Seattle real estate startup, has conducted its fourth round of layoffs in the last two years. https://axios.link/41ta7S9

4. It's personnel

Situational awareness: We have a new landing page for our Deals Tracker.

And you can now access the Tracker straight from the Pro home page. Have a look and let us know what you think. 

🏈 @Ryan is nervous about the Eagles on MNF tonight.

Thanks to Michael Flaherty and Sheryl Miller for today's edits.

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

December 18, 2023

1 big thing: Investing in Future