Cryptocurrency News Today: These are the 10 London fintechs VCs say are the most exciting in 2019

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Cryptocurrency News Today: These are the 10 London fintechs VCs say are the most exciting in 2019

TransferWise founders Kristo Kaarmann and Taavet Hinrikus
TransferWise founders Kristo Kaarmann, left, and Taavet Hinrikus.

TransferWise

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  • We asked several major venture-capital investors to tell us which London fintechs excited them.
  • The companies cover a wide variety of products and services across the financial industry as digital disruption re-shapes everything from banking to insurance.

Business Insider spoke with some of the most prominent voices in venture capital to pick out the most exciting companies in London’s fintech industry this year.

Major fintech names to date have mostly been challenger or neo-banks which provide payment services, particularly related to foreign exchange and low-fee transfers. However, there have been some major new trends in the market, such as open banking, the rise of compliance, and a big move towards insurance technology.

London is the second largest city in the world for fintech unicorns and saw $5 billion in investment into the sector in the first half of 2019.

Read more: A fintech ‘brain drain’ is crippling once-mighty London: 10 UK start-up leaders contemplate life after Brexit

Here are the fintechs that VCs think are dominating in 2019.

Cleo’s COO Thish Nadesan

Cleo

Startup: Cleo

Cited by these VCs: Rob Moffat (Balderton), Remus Brett (LocalGlobe),

Relationship: Investors

Total raised: $13.3 million

What it does: Cleo is an AI assistant that connects customers’ bank accounts helping them to manage their finances through digital responses on Facebook Messenger.

Why it’s hot in 2019: Cleo’s really taken advantage of Open Banking and has grabbed the attention of over a million users in two years. They’ve moved quickly where banks have been slow in this space, according to Rob Moffat at Balderton Capital.

“Our plan for 2019 is continued international expansion and the development of additional products and services,” said Thish Nadesan, Cleo’s COO, in an interview with Business Insider.

Zego’s cofounders Harry Franks, Stuart Kelly, and Sten Saar

Zego

Startup: Zego

Cited by these VCs: Rob Moffat (Balderton)

Relationship: Investor

Total raised: $51 million

What it does: Zego is an insurance company that provides flexible cover for the gig economy including motorbike drivers and couriers with provisions dependent on usage and ownership.

Why it’s hot in 2019: Fractional insurance is disrupting the traditional space, with Zego providing a tech-driven approach to the sector. The London-based company has just launched its offering in Spain and is one to watch this year because “the demand economy needs insurance,” according to Balderton’s Rob Moffat.

You can read more about Zego here.

Charles Delingpole, ComplyAdvantage.

ComplyAdvantage

Startup: Mimiro (formerly ComplyAdvantage)

Cited by these VCs: Rob Moffat (Balderton), Index Ventures

Relationship: Investors

Total raised: $38.2 million

What it does: Mimiro is a machine-learning platform designed to analyze the risk of financial crime between institutions in a globalized, interconnected economy where “know your customer” compliance is tricky and arduous.

Why it’s hot in 2019: Bank regulation is a hot area, and compliance takes up increasing amounts of time. Mimiro is set to simplify the process with a major focus on anti-money laundering and the company’s rapid growth to-date has been testament that its set to continue this year, having just raised Series B funding.

You can read more about ComplyAdvantage here.

TransferWise founders Kristo Kaarmann, right, and Taavet Hinrikus.

TransferWise

Startup: TransferWise

Cited by these VCs: Reshma Sohoni (Seedcamp)

Relationship: Initial seed investment

Total raised: $772.7 million

What it does: TransferWise is a money transfer and payments platform with more than 4 million customers moving $4 billion a month through the service. Customers can also exchange between a variety of currencies through the platform.

Why it’s hot in 2019: Already one of Europe’s best known fintechs, TransferWise is tipped to boom once again this year given its innovative payments processing, according to Reshma Sohoni at Seedcamp.

You can read more about TransferWise here.

Tom Blomfield, Monzo CEO.

Monzo

Startup: Monzo

Cited by these VCs: Accel

Relationship: Investor

Total raised: $324.7 million

What it does: Challenger bank unicorn Monzo is a digital only offering which has over two million customers. The neo bank offers savings and payments tools for its users and was valued at over $2 billion during its latest fundraise.

Why it’s hot in 2019: Monzo began its expansion plans into the US this year. “Monzo is reshaping consumer banking with a delightful user experience and a product that encourages financial wellbeing and trust,” said Andrei Brasoveanu, a partner at Accel, told Business Insider in an interview. “We’re big believers in the founders Tom and Jonas, who’ve built a company culture with an unparalleled level of motivation and transparency.”

You can read more about Monzo here.

Revolut cofounders Vlad Yatsenko, left, and Nikolay Storonsky.

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