JPMorgan, Goldman Sachs, and Citi are Wall Street’s most active fintech investors. Here are 10 startups they’ve poured money into so far this year.

  • Since the start of 2020, US banks have invested in 40 fintech companies.
  • Goldman Sachs, Citi, and JPMorgan have been the most active US banks in fintech investing since 2012, according to CB Insights data.
  • Within fintech, banks are investing most actively in capital markets, wealth and asset management, and small business-focused startups.
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Fintech funding slumped amid the economic uncertainty caused by the coronavirus pandemic. But VCs and banks alike are still investing.

Since 2012, Goldman Sachs, Citi, and JPMorgan have been the most active banks when it comes to investing in fintech. And this year, they're making bets on segments seeing a boost with the accelerated shift toward digital finance.

Across the board, US banks have invested in 40 fintech deals so far this year, following 66 total deals in 2019, according to CB Insights data.

Both Goldman and Citi have separate investment arms for these deals — GS Growth and Citi Ventures. Meanwhile, JPMorgan has the largest reported tech budget of US banks at $11.4 billion in 2019 and a streamlined process to evaluate fintechs.

While VCs and banks are hoping for high returns on their startup bets, banks also invest when there's an opportunity for a strategic partnership. JPMorgan, for example, partnered with supply-chain financing startup Taulia in April, offering its platform to clients. JPMorgan also participated in Taulia's $60 million fundraise in July.

Read more: These 38 fintechs are the next generation of breakout B2B stars. Here's who investors have tapped to follow in the footsteps of Plaid and Stripe.

Much of the banks' fintech deals fall into the capital markets category, investing in companies focused on digitizing and automating trading. And that's held true in 2020, with the banks mainly investing in capital markets, wealth and asset management, and small-business focused fintech.

Here's the list of fintechs that Wall Street's three biggest investors have put money into this year.

Capital Markets Gateway

Bank: Citi, Goldman Sachs, JPMorgan

2020 investment: Participated in $25 million Series B in June

What it does: Workflow management and data analytics solutions for the traders.

Capitolis

Bank: Citi, JPMorgan

2020 investment: Participated in September funding round of $11 million. 

What it does: A platform that connects buyers and sellers to speed up trading processes.

Flywire

Bank: Goldman Sachs

2020 investment: Led $120 million Series E in February

What it does: Payments platform for education, healthcare, travel, and tech companies.

Read more: Goldman Sachs-backed payments unicorn Flywire is cutting 12% of its workforce amid the coronavirus pandemic

HighRadius

Bank: Citi

2020 investment: Participated in a $125 million Series B in January.

What it does: AI-powered account receivables and treasury management software provider.

iCapital Network

Bank: Goldman Sachs

2020 investment: Participated in $146 million fundraise in March.

What it does: A platform for alternative investing.

See more: iCapital raises a $146 million funding round as it aims to further enhance its platform

MEMX

Bank: Citi, Goldman Sachs, JPMorgan 

2020 investment: Participated in undisclosed funding rounds in February and June. 

What it does: Member-owned stock exchange with reduced fees.

See more: An upstart exchange looking to elbow in on NYSE and Nasdaq just nabbed big buy-in from JPMorgan, Goldman Sachs, and Jane Street and set a go-live date

Socure

Bank: Citi

2020 investment: Participated in a $35 million funding round in September

What it does: AI-driven identity-verification platform.

Read more: The boom in online payments has companies like Airbnb, OkCupid, and Nordstrom looking for new ways to fight fraud. Here are 10 startups — and the VCs backing them — helping tackle everything from catfishing to money laundering.

 

Taulia

Bank: JPMorgan 

2020 investment: Participated in $60 million fundraise in July.

What it does: Supply-chain financing platform.

Trovata

Bank: JPMorgan 

2020 investment: Led $4.3 million venture round in April.

What it does: Automated cash reporting and forcasting platform.

Read more: JPMorgan is backing a startup that solves cash-flow headaches for small businesses. Here's how it works.

Unqork

Bank: Goldman Sachs

2020 investment: Participated in $131 million Series B in February.

What it does: No-code platform for legacy financial institutions like banks and insurance companies to build software.

See more: These 38 fintechs are the next generation of breakout B2B stars. Here's who investors have tapped to follow in the footsteps of Plaid and Stripe.

 

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