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Previse and Cobalt named amongst Top 101 Fintech Disruptors

BusinessCloud has revealed its list of the top 101 fintech disrupters in the UK, and it made for pleasant reading at Chatsworth Towers.

The award recognises companies that are disrupting the industry through technology – whether they are heavyweight incumbents to start-ups. BusinessCloud also canvassed the opinion of industry experts before they settled on the final line-up, and we’re delighted that two of our clients made the list.

One of those is Previse, a startup that applies machine learning technology to solve a global business problem – slow B2B payments. The London-based fintech enables buyers to have all their suppliers paid instantly, as soon as the buyer receives an invoice. It uses machine learning to root out the invoices which may not be paid, allowing a funder to pay the rest immediately.

Previse has made huge strides since its launch in 2016, recently raising £7 million in Series A funding. The startup has also received backing from leading business figures and top venture capital firms and has signed up seven large organisations. With strong plans for growth, the company is undoubtedly one of the hottest fintechs worth keeping an eye on over the next few years.

Another of Chatsworth’s clients named in the list is Cobalt, a foreign exchange (FX) post-trade processing network based on shared infrastructure and high-performance technology. Cobalt’s unique solution leverages highly optimised technology alongside an in-house immutability service based on distributed ledger technology (DLT) to deliver a shared back and middle office infrastructure that is scalable, secure and fast.

By creating a shared view of trade data, Cobalt frees up back and middle office resources from multiple layers of reconciliation; creating a ‘golden’ portfolio of FX transactions from which to provide multiple services.

In May, Cobalt secured a strategic investment from Singapore Exchange (SGX), which operates Asia’s largest, most diverse and fastest growing FX exchange.

It’s great to see startups such as Previse and Cobalt be recognized for shaking up the status quo in their respective industries.

As the original fintech PR company, we can say with confidence that there isn’t a more disruptive sector than fintech. It has finally come of age and made it into the US-run Merriam Webster online dictionary – perhaps fitting, considering the shared digital origins!

READ THE LIST IN FULL

Previse raises USD $7m in Series A funding round

Previse, the global supplier payments decisions company, has raised USD $7m in a Series A funding round, led by listed European fintech specialist, Augmentum Fintech PLC, and one of the world’s pre-eminent venture capital firms, Bessemer Venture Partners.

Hambro Perks and a number of existing and new angel investors also participated in the funding round.

Applying machine learning to B2B payments

Previse applies machine learning technology to solve a global business problem – slow B2B payments. The London-based fintech enables buyers to have all their suppliers paid instantly, as soon as the buyer receives an invoice. It uses machine learning to root out the invoices which may not be paid, allowing a funder to pay the rest immediately. The small fee paid by the supplier for instant payment is shared between the buyer, the funder and Previse.

How big is the slow B2B payments problem?

Slow business to business (B2B) payments caused by inefficient payment terms cost the world’s businesses US$300 billion every year. They cripple business and economic growth and are one of the leading killers of small suppliers. Paying slowly costs large buyers, because a supplier’s expensive cost of borrowing is priced into the cost of the goods or services supplied. Large buyers are also perceived to be taking advantage of their suppliers and are facing a growing public and political backlash as a result.

Significant demand for InstantPay

Since its founding in 2016, Previse has grown rapidly, signing up seven large organisations as well as receiving significant demand for its InstantPay technology from some of the world’s largest companies. It is also now listed on the G-Cloud – meaning instant invoice payment is now available for the £223 billion market that is public procurement.

The Series A funding will help scale Previse’s business to meet this significant, global demand, onboard clients and further develop its technology with the overall aim of ensuring that every supplier in the world can be paid instantly.

World-leading backers

Bessemer Venture Partners is America’s longest-standing venture capital firm. It has a global portfolio and has invested in companies such as LinkedIn, DocuSign, and Box. Augmentum Fintech is a listed fintech-focused venture capital investor and its portfolio includes leading UK fintech companies such as Zopa, Interactive Investor and Seedrs.

In 2017, Previse also raised £2 million in a seed funding round led by Hambro Perks, Founders Factor and high net-worth angel investors with close ties to high-profile multinationals.

It counts senior business figures such as Chairman of British Land, John Gildersleeve, and Sainsbury’s Chairman, David Tyler as members of its advisory board.

More positive news for high-flying UK fintech scene

This positive development from the London-based fintech comes just weeks after KPMG announced the UK held the crown for worldwide fintech investment in H1 of 2018. It attracted over US$16.1bn of inbound investment during the first half of the year, more than China (US$15.1bn) and the United States (US$14.2bn).

Previse has made huge strides since its launch in 2016, receiving backing from leading business figures, top venture capital firms and signing up seven large organisations. With strong plans for growth and a desire to transform global B2B payments, the company is undoubtedly one of the hottest fintechs worth keeping an eye on over the next few years.

Mosaic Smart Data & Previse named in Europe’s 50 Hottest Fintechs

Last week, Fintech City unveiled the sixth annual list of Europe’s top fintech50 companies. The list is selected by a panel of internationally renowned figures across finance and technology from a long-list of 1,800 companies. We were very proud to see Mosaic Smart Data and Previse added to the list this year for the first time.

Drawn from both B2C fintechs and those aimed at the institutional market, the list includes a wide range of business models and technologies.

Mosaic Smart Data and Previse lead a strong contingent of data analytics and machine learning companies. Both companies have had huge success targeting these technologies at specific, previously unsolvable, business problems.

In the case of Mosaic, it is enabling institutions to, for the first time, see their fixed income, currencies and commodities business in real-time. It uses advanced analytics to enable sales teams to generate useable insights to boost their performance and improve client servicing. In the last twelve months, Mosaic announced its first client, secured funding and expanded its team.

Previse is using machine learning to enable large businesses to have their suppliers paid instantly. It has made it onto the list in just its second year of business after securing funding from the Scottish Government and welcoming senior business figures such as John Gildersleeve and David Tyler to its advisory board.

As well as analytics companies like Mosaic Smart Data and Previse, a big trend in the 2018 list are blockchain companies. The list includes businesses applying the technology to a range of fields, from wholesale payments settlement to digital identity and cybersecurity.

Data analytics and blockchain are moving beyond theory and are now actively transforming global finance. It is, therefore, no surprise that these technologies feature strongly in this list of the most exciting financial technology companies.

We are proud to be working with some of the companies in the vanguard of these changes, both in Europe and the United States.

Previse secures backing to end late B2B payments with the help of AI

Small businesses are the backbone of the UK economy, generating some 50% of private sector turnover and employing three out of five private sector workers.

However, these businesses are held back by late payments from their large corporate clients. With 60% of SMEs paid late by corporates, businesses are left strapped for cash to meet their own payment obligations, such as wages, stock and rent. This cash flow crisis forces 50,000 UK companies a year to go to the wall. 

Banks play a role in easing the problem, offering larger suppliers short-term financing or buying the invoices directly from suppliers for a substantial discount, a practice known as factoring. Both these solutions are expensive for the supplier, however, which pushes up prices for the whole payments chain. In addition, given the fragmented and high-risk nature of the SME credit market, only the largest suppliers are able to secure credit.

This means that, according to the world bank, there is $2.4 trillion in unmet demand for financing from SMEs globally.

Enter Previse. The company, which this week announced the successful completion of a £2 million seed round, is harnessing the power of artificial intelligence (AI) technology to allow banks to meet the financing needs of SME suppliers in a scalable and low-risk way.

Previse uses advanced AI and hundreds of millions of data points to score the likelihood that a corporate buyer will be able to pay a supplier’s invoice. This score is then provided to banks and other funders who use that information to instantly pay the SME on behalf of the large corporate. The supplier receives their money the day they issue their invoice, giving them complete cash flow confidence.

The effect is that “instant, frictionless and efficient payments become the new standard for B2B payments,” according to Paul Christensen, co-founder and CEO of Previse.

The rest of the payments chain benefits as well. By offering such a service, buyers can negotiate a discount on their purchasing costs and banks can reach much deeper into the SME credit market without blowing their risk exposure. The net effect could be a several billion-pound boost to the UK economy every year.

To find out more about Previse seed funding please click here