![\"\"](\"https://www.pymnts.com/wp-content/uploads/2024/12/business-applications-graphic.jpg\")
Startups that build artificial intelligence (AI) applications on top of large language models (LLMs) are reportedly making rapid gains in both sales and funding.
\nThese startups are reaching as much as $200 million in annual recurring revenue in less than two years and, as a group, increased the amount of funding they attracted by 110% to reach $8.2 billion\u00a0in 2024, the Financial Times (FT)\u00a0reported\u00a0Monday (April 14), citing data from\u00a0Dealroom.co\u00a0and Flashpoint.
\nThis category of AI startups includes companies like\u00a0Perplexity,\u00a0Synthesia, \u00a0ElevenLabs,\u00a0Harvey and\u00a0Sierra, according to the report.\u00a0
\nThey also include coding app startups like\u00a0Anysphere,\u00a0Reflection AI,\u00a0Poolside,\u00a0Magic\u00a0and\u00a0Windsurf, formerly Codeium, that have raised hundreds of millions of dollars over the past year, per the report.
\nAI app startups are benefiting from soaring user numbers, competition among LLMs that is driving down the cost of using AI, the flexibility to switch from one AI model to another, and investors\u2019 hopes that they will deliver productivity gains to customers without having to invest in building LLMs, the report said.
\nAt the same time, some investors believe these companies face challenges, including their first annual renewal cycle with their customers and the possibility that larger companies could come along and offer similar applications, the report added.
\nIt was reported in August that while\u00a0generative AI is not yet making money in some fields, the technology has quickly proven its value in powering coding assistants.
\nThe report said coding copilots have delivered clear time to value and value-add; at least one company said it would stop hiring people who code without AI; the demand for programming will go up as the task becomes easier; and software engineers have already integrated these assistants into their workflow.
\nOther\u00a0AI applications and ways companies are harnessing LLMs include AI writing assistants, chatbots, virtual tutors and research aids, PYMNTS reported in May.
\nIn addition, healthcare providers are exploring the use of LLMs for medical Q&A, doctor note summarization and drug discovery; banks are leveraging the models for risk assessment, fraud detection and personalized financial advice; and law firms use LLMs to assist with legal research, contract analysis and case prediction.
\nThe post AI App Startups Making Rapid Gains in Sales and Funding appeared first on PYMNTS.com.
\n", "content_text": "Startups that build artificial intelligence (AI) applications on top of large language models (LLMs) are reportedly making rapid gains in both sales and funding.\nThese startups are reaching as much as $200 million in annual recurring revenue in less than two years and, as a group, increased the amount of funding they attracted by 110% to reach $8.2 billion\u00a0in 2024, the Financial Times (FT)\u00a0reported\u00a0Monday (April 14), citing data from\u00a0Dealroom.co\u00a0and Flashpoint.\nThis category of AI startups includes companies like\u00a0Perplexity,\u00a0Synthesia, \u00a0ElevenLabs,\u00a0Harvey and\u00a0Sierra, according to the report.\u00a0\nThey also include coding app startups like\u00a0Anysphere,\u00a0Reflection AI,\u00a0Poolside,\u00a0Magic\u00a0and\u00a0Windsurf, formerly Codeium, that have raised hundreds of millions of dollars over the past year, per the report.\nAI app startups are benefiting from soaring user numbers, competition among LLMs that is driving down the cost of using AI, the flexibility to switch from one AI model to another, and investors\u2019 hopes that they will deliver productivity gains to customers without having to invest in building LLMs, the report said.\nAt the same time, some investors believe these companies face challenges, including their first annual renewal cycle with their customers and the possibility that larger companies could come along and offer similar applications, the report added.\nIt was reported in August that while\u00a0generative AI is not yet making money in some fields, the technology has quickly proven its value in powering coding assistants.\nThe report said coding copilots have delivered clear time to value and value-add; at least one company said it would stop hiring people who code without AI; the demand for programming will go up as the task becomes easier; and software engineers have already integrated these assistants into their workflow.\nOther\u00a0AI applications and ways companies are harnessing LLMs include AI writing assistants, chatbots, virtual tutors and research aids, PYMNTS reported in May.\nIn addition, healthcare providers are exploring the use of LLMs for medical Q&A, doctor note summarization and drug discovery; banks are leveraging the models for risk assessment, fraud detection and personalized financial advice; and law firms use LLMs to assist with legal research, contract analysis and case prediction.\nThe post AI App Startups Making Rapid Gains in Sales and Funding appeared first on PYMNTS.com.", "date_published": "2025-04-14T18:41:24-04:00", "date_modified": "2025-04-14T18:41:24-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/04/AI-startups-digital-transformation.jpg", "tags": [ "AI", "AI applications", "AI funding", "AI investments", "AI startups", "artificial intelligence", "digital transformation", "large language models", "LLMs", "News", "PYMNTS News", "What's Hot", "Startups" ] }, { "id": "https://www.pymnts.com/?p=2683478", "url": "https://www.pymnts.com/startups/2025/british-startups-look-to-us-as-homegrown-funding-grows-scarce/", "title": "British Startups Look to US as Homegrown Funding Grows Scarce", "content_html": "British startups are reportedly weighing a move to the U.S. as investment declines.
\nStartups in the U.K. took in just \u00a316.2 billion ($21.1 billion) last year, the Financial Times (FT) reported Sunday (April 13), citing data from Dealroom. That figure, the report said, is the lowest since 2020. At the same time, American tech startups raised more than \u00a365 billion during 2024, a 71% increase over the prior year.
\nNow, the CEOs of several U.K. startups tell the FT that their wish to entice American investors has led them to incorporate in the U.S., even though they are based in London.
\n\u201cRecognizing that most venture funding comes from the U.S., we set up as a Delaware corporation \u2014 the preferred and familiar structure for U.S. investors,\u201d said Mati Staniszewski, co-founder of artificial intelligence (AI) company ElevenLabs, which was valued at $3.3 billion after completing a funding round in late January.
\nThe report added that of the 70 U.K.-founded, venture-backed tech startups now based in the U.S., nearly a fifth of them were incorporated after 2020.
\nThe FT also noted that this trend is happening as the British government is pushing the growing AI sector as a possible engine for growth.
\nHowever, young companies warn that trouble in finding capital was hindering British businesses from competing with their global peers. The report also points to the tradition of leading U.K. tech companies being purchased by much larger international investors, like the now-Google-owned-DeepMind.
\nMeanwhile, U.S. lawmakers say they want to make it easier for companies to get funded, with the House Financial Services Committee (HSFC) recently taking up 40 bills aimed at that goal.
\n\u201cOur capital markets should work for everyone,\u201d HFSC Chairman French Hill, R-Ark., said in a news release. \u201cThat means reducing barriers for startups to access funding, incentivizing investment in regional businesses, and reforming outdated regulations that improve access to growth capital to ensure a public offering is a more viable option again.\u201d
\nMembers of the committee argue that most venture capital (VC) funding is concentrated in just a few states, that just 19% of American households were defined as accredited investors in 2022, and that the number of public company listings in the U.S. has declined.
\nThe post British Startups Look to US as Homegrown Funding Grows Scarce appeared first on PYMNTS.com.
\n", "content_text": "British startups are reportedly weighing a move to the U.S. as investment declines.\nStartups in the U.K. took in just \u00a316.2 billion ($21.1 billion) last year, the Financial Times (FT) reported Sunday (April 13), citing data from Dealroom. That figure, the report said, is the lowest since 2020. At the same time, American tech startups raised more than \u00a365 billion during 2024, a 71% increase over the prior year.\nNow, the CEOs of several U.K. startups tell the FT that their wish to entice American investors has led them to incorporate in the U.S., even though they are based in London.\n\u201cRecognizing that most venture funding comes from the U.S., we set up as a Delaware corporation \u2014 the preferred and familiar structure for U.S. investors,\u201d said Mati Staniszewski, co-founder of artificial intelligence (AI) company ElevenLabs, which was valued at $3.3 billion after completing a funding round in late January.\nThe report added that of the 70 U.K.-founded, venture-backed tech startups now based in the U.S., nearly a fifth of them were incorporated after 2020.\nThe FT also noted that this trend is happening as the British government is pushing the growing AI sector as a possible engine for growth.\nHowever, young companies warn that trouble in finding capital was hindering British businesses from competing with their global peers. The report also points to the tradition of leading U.K. tech companies being purchased by much larger international investors, like the now-Google-owned-DeepMind.\nMeanwhile, U.S. lawmakers say they want to make it easier for companies to get funded, with the House Financial Services Committee (HSFC) recently taking up 40 bills aimed at that goal.\n\u201cOur capital markets should work for everyone,\u201d HFSC Chairman French Hill, R-Ark., said in a news release. \u201cThat means reducing barriers for startups to access funding, incentivizing investment in regional businesses, and reforming outdated regulations that improve access to growth capital to ensure a public offering is a more viable option again.\u201d\nMembers of the committee argue that most venture capital (VC) funding is concentrated in just a few states, that just 19% of American households were defined as accredited investors in 2022, and that the number of public company listings in the U.S. has declined.\nThe post British Startups Look to US as Homegrown Funding Grows Scarce appeared first on PYMNTS.com.", "date_published": "2025-04-13T16:49:23-04:00", "date_modified": "2025-04-13T16:50:30-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/04/ElevenLabs-British-startups.jpg", "tags": [ "deepmind", "ElevenLabs", "Mati Staniszewski", "News", "PYMNTS News", "Silicon Valley", "startup funding", "Startups", "tech funding", "UK Startups", "VC", "Venture Capital", "venture investment", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2515468", "url": "https://www.pymnts.com/startups/2025/middle-market-firms-wary-of-smaller-ai-driven-rivals/", "title": "Middle-Market Firms Wary of Smaller AI-Driven Rivals", "content_html": "In the business realm, the word \u201cstartup\u201d conjures up the garage as innovation lab, the bootstrapping and scrapping micro-firm that has the potential to disrupt an industry and grow into a behemoth. Apple comes to mind, and so does Microsoft. Social media platforms were once only a twinkle of a college student\u2019s daydream mused upon in a dorm room.
\nFor middle-market companies and especially those with $100 million to $1 billion in sales \u2014\u00a0which means that they are already well-established \u2014\u00a0the smaller players in their respective industries, particularly within the services verticals, are gaining currency as formidable competitors.
\nAs detailed by PYMNTS Intelligence in the \u201cNavigating Uncertainty: How Middle-Market Executives Adapt, Compete and Innovate,\u201d 60 heads of product said that the development and tech-driven businesses they help steer are finding that the competitive landscape is shifting.\u00a0
\nAmong middle-market firms, 42% consider innovation a primary or significant factor in their competitive strategy. But 13% of middle-market product leaders now see startups as their biggest competitive threat, a 2.6x increase from six months ago.
\nAmong the reasons that these smaller players are able to pose new challenges: They may be outstripped by their larger brethren in terms of sales, but they also have the key edge of being nimble, and quite often they harness artificial intelligence (AI) to improve their operations and to innovate in new ways.
\nLarge corporations remain the most frequently cited rivals for the middle-market companies, though the trend has been declining a bit, as the share of middle-market companies stating that these juggernauts are the biggest competitive threat has declined (in favor of smaller companies) from 33% to 27%. Rival middle-market businesses also saw a slight uptick in being named top competitors, rising from 12% to 15%. Private equity-backed competitors seen as a concern were lower among middle-market companies, inching lower from 10% to 6.7%.
\nThe competitive shift is most keenly felt in service industries like real estate and finance. In those fields, 16% of leaders now view small businesses or startups as their main competitors, up from 11%.
\nThere\u2019s awareness among all middle-market firms that innovating \u2014 in a bid to joust with the smaller challengers \u2014 has the beneficial effect of improving their own fortunes. The data shows that, in particular, heads of product prioritizing tech-driven strategies report 54% fewer instances of high uncertainty.\u00a0
\nInnovation leads to product differentiation and better perceptions of their brands in their respective marketplaces. In just the past half year, the share of middle-market firms citing technological advancements as a competitive challenge has risen fivefold. \u00a0\u00a0
\nWe found that the firms that make innovation a primary or significant factor in their business development roadmaps are likelier to emphasize industry shifts (36%) and customer demand for more advanced solutions (24%), enabling them to pivot faster and reduce uncertainty.\u00a0
\nBut the road to tech-driven innovations is no straight line. With technological advancements also emerging as a greater challenge \u2014 rising from 3.3% to 20% \u2014 middle-market firms must balance policy compliance with innovation to avoid falling behind in a complex business landscape.
\nThe post Middle-Market Firms Wary of Smaller AI-Driven Rivals appeared first on PYMNTS.com.
\n", "content_text": "In the business realm, the word \u201cstartup\u201d conjures up the garage as innovation lab, the bootstrapping and scrapping micro-firm that has the potential to disrupt an industry and grow into a behemoth. Apple comes to mind, and so does Microsoft. Social media platforms were once only a twinkle of a college student\u2019s daydream mused upon in a dorm room.\nFor middle-market companies and especially those with $100 million to $1 billion in sales \u2014\u00a0which means that they are already well-established \u2014\u00a0the smaller players in their respective industries, particularly within the services verticals, are gaining currency as formidable competitors.\nAs detailed by PYMNTS Intelligence in the \u201cNavigating Uncertainty: How Middle-Market Executives Adapt, Compete and Innovate,\u201d 60 heads of product said that the development and tech-driven businesses they help steer are finding that the competitive landscape is shifting.\u00a0 \nAmong middle-market firms, 42% consider innovation a primary or significant factor in their competitive strategy. But 13% of middle-market product leaders now see startups as their biggest competitive threat, a 2.6x increase from six months ago.\nAmong the reasons that these smaller players are able to pose new challenges: They may be outstripped by their larger brethren in terms of sales, but they also have the key edge of being nimble, and quite often they harness artificial intelligence (AI) to improve their operations and to innovate in new ways.\nLarge corporations remain the most frequently cited rivals for the middle-market companies, though the trend has been declining a bit, as the share of middle-market companies stating that these juggernauts are the biggest competitive threat has declined (in favor of smaller companies) from 33% to 27%. Rival middle-market businesses also saw a slight uptick in being named top competitors, rising from 12% to 15%. Private equity-backed competitors seen as a concern were lower among middle-market companies, inching lower from 10% to 6.7%.\nDrilling Down Into Service Industries\nThe competitive shift is most keenly felt in service industries like real estate and finance. In those fields, 16% of leaders now view small businesses or startups as their main competitors, up from 11%. \nThere\u2019s awareness among all middle-market firms that innovating \u2014 in a bid to joust with the smaller challengers \u2014 has the beneficial effect of improving their own fortunes. The data shows that, in particular, heads of product prioritizing tech-driven strategies report 54% fewer instances of high uncertainty.\u00a0 \nInnovation leads to product differentiation and better perceptions of their brands in their respective marketplaces. In just the past half year, the share of middle-market firms citing technological advancements as a competitive challenge has risen fivefold. \u00a0\u00a0\nInnovation Is Key to Competitive Strategy\nWe found that the firms that make innovation a primary or significant factor in their business development roadmaps are likelier to emphasize industry shifts (36%) and customer demand for more advanced solutions (24%), enabling them to pivot faster and reduce uncertainty.\u00a0 \nBut the road to tech-driven innovations is no straight line. With technological advancements also emerging as a greater challenge \u2014 rising from 3.3% to 20% \u2014 middle-market firms must balance policy compliance with innovation to avoid falling behind in a complex business landscape.\nThe post Middle-Market Firms Wary of Smaller AI-Driven Rivals appeared first on PYMNTS.com.", "date_published": "2025-03-25T04:01:54-04:00", "date_modified": "2025-03-30T21:41:27-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/03/small-big-rivals.jpg", "tags": [ "AI", "artificial intelligence", "B2B", "B2B Payments", "commercial payments", "Featured News", "middle market", "News", "PYMNTS Intelligence", "PYMNTS News", "Startups" ] }, { "id": "https://www.pymnts.com/?p=2438759", "url": "https://www.pymnts.com/startups/2025/proptech-startup-blueground-accused-price-gouging-during-los-angeles-fires/", "title": "PropTech Startup Blueground Accused of Price Gouging During LA Fires", "content_html": "Los Angeles accused rental startup Blueground of price gouging following the city\u2019s wildfires.
\nCity Attorney Hydee Feldstein Soto\u2019s office filed a civil action against the company, alleging it drove up the prices of its rentals by more than 10% and up to more than 50% in some cases, in violation of Los Angeles\u2019 anti-gouging law, according to a Tuesday (Feb. 4) press release. The law is automatically triggered when the city declares a state of emergency during a natural disaster.
\n\u201cIt is not only unconscionable for Blueground to take advantage of Angelenos when they are at their most vulnerable, it is illegal and must stop immediately,\u201d Soto said in the release. \u201cOur prosecutorial offices at the state, county and local levels are united in this effort to fight price gouging and hold accountable individuals and businesses who prey on our residents during this unprecedented emergency.\u201d
\nSeveral Blueground rental properties\u2019 prices rose on or after the emergency was declared Jan. 7, per the release. For example, one apartment that had been advertised for $2,000 per month on Dec. 31 was being offered at $3,120 Jan. 7, a 56% increase. The price was reduced to $2,730 days later \u2014 still 36.5% above the pre-emergency rent \u2014 before the listing was removed from Zillow.
\nReached by PYMNTS, Blueground provided the following statement:
\n\u201cBlueground strongly denies the allegations made by the Los Angeles City Attorney. We operate in full compliance with California law, including the \u2018Anti-Gouging Law\u2019 that was recently triggered upon the declaration of a state of emergency during a natural disaster.
\n\u201cFrom the moment the State of Emergency was declared, our team has diligently worked to ensure full compliance with California\u2019s Anti-Gouging Law and has continuously monitored our pricing to maintain compliance. It is important to clarify that the Zillow rates mentioned in the complaint referred to dates outside of the State of Emergency. Most of these listings were for future dates, many of which fall during peak travel season, and were not subject to the emergency pricing restrictions.
\n\u201cWe are heartbroken by the devastation caused by the recent wildfires in Los Angeles and the surrounding areas. We are working closely with the City Attorney\u2019s office to provide additional information and to clarify any concerns, and will continue to revisit our pricing model until the housing crisis in LA subsides.\u201d
\nThe city\u2019s suit is asking for a permanent injunction blocking Blueground from charging more than 10% throughout the duration of the current state of emergency, restitution for consumers who were charged illegal rent, and civil penalties, according to the release.
\nBlueground offers customers fully-furnished turnkey rentals, advertising on its website and sites like Zillow and Airbnb. This sort of housing \u201ccould be a desirable option for those who are suddenly and unexpectedly in need of temporary housing,\u201d the release said.
\nThe city also filed criminal charges against a homeowner and her real estate agent for price gouging, accusing them of illegally increasing rent by 38% during the fires, per the release.
\nThe fires\u2019 toll on Los Angeles, both financial and emotional, will be felt for years, presenting another challenge to the state, where insurance companies have been boosting their rates or exiting the market entirely.
\n\u201cPeople are going to have to think through how insurance works, where they want to live and how they want to live because the cost of living in certain areas is continuing to increase,\u201d One Inc CEO Ian Drysdale told PYMNTS last month.
\nThe post PropTech Startup Blueground Accused of Price Gouging During LA Fires appeared first on PYMNTS.com.
\n", "content_text": "Los Angeles accused rental startup Blueground of price gouging following the city\u2019s wildfires.\nCity Attorney Hydee Feldstein Soto\u2019s office filed a civil action against the company, alleging it drove up the prices of its rentals by more than 10% and up to more than 50% in some cases, in violation of Los Angeles\u2019 anti-gouging law, according to a Tuesday (Feb. 4) press release. The law is automatically triggered when the city declares a state of emergency during a natural disaster.\n\u201cIt is not only unconscionable for Blueground to take advantage of Angelenos when they are at their most vulnerable, it is illegal and must stop immediately,\u201d Soto said in the release. \u201cOur prosecutorial offices at the state, county and local levels are united in this effort to fight price gouging and hold accountable individuals and businesses who prey on our residents during this unprecedented emergency.\u201d\nSeveral Blueground rental properties\u2019 prices rose on or after the emergency was declared Jan. 7, per the release. For example, one apartment that had been advertised for $2,000 per month on Dec. 31 was being offered at $3,120 Jan. 7, a 56% increase. The price was reduced to $2,730 days later \u2014 still 36.5% above the pre-emergency rent \u2014 before the listing was removed from Zillow.\nReached by PYMNTS, Blueground provided the following statement:\n\u201cBlueground strongly denies the allegations made by the Los Angeles City Attorney. We operate in full compliance with California law, including the \u2018Anti-Gouging Law\u2019 that was recently triggered upon the declaration of a state of emergency during a natural disaster.\n\u201cFrom the moment the State of Emergency was declared, our team has diligently worked to ensure full compliance with California\u2019s Anti-Gouging Law and has continuously monitored our pricing to maintain compliance. It is important to clarify that the Zillow rates mentioned in the complaint referred to dates outside of the State of Emergency. Most of these listings were for future dates, many of which fall during peak travel season, and were not subject to the emergency pricing restrictions.\n\u201cWe are heartbroken by the devastation caused by the recent wildfires in Los Angeles and the surrounding areas. We are working closely with the City Attorney\u2019s office to provide additional information and to clarify any concerns, and will continue to revisit our pricing model until the housing crisis in LA subsides.\u201d\nThe city\u2019s suit is asking for a permanent injunction blocking Blueground from charging more than 10% throughout the duration of the current state of emergency, restitution for consumers who were charged illegal rent, and civil penalties, according to the release.\nBlueground offers customers fully-furnished turnkey rentals, advertising on its website and sites like Zillow and Airbnb. This sort of housing \u201ccould be a desirable option for those who are suddenly and unexpectedly in need of temporary housing,\u201d the release said.\nThe city also filed criminal charges against a homeowner and her real estate agent for price gouging, accusing them of illegally increasing rent by 38% during the fires, per the release.\nThe fires\u2019 toll on Los Angeles, both financial and emotional, will be felt for years, presenting another challenge to the state, where insurance companies have been boosting their rates or exiting the market entirely.\n\u201cPeople are going to have to think through how insurance works, where they want to live and how they want to live because the cost of living in certain areas is continuing to increase,\u201d One Inc CEO Ian Drysdale told PYMNTS last month.\nThe post PropTech Startup Blueground Accused of Price Gouging During LA Fires appeared first on PYMNTS.com.", "date_published": "2025-02-05T09:58:54-05:00", "date_modified": "2025-02-05T15:00:44-05:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/02/LA-wildfires.jpg", "tags": [ "Blueground", "Lawsuits", "legal", "News", "PYMNTS News", "real estate", "Rent Payments", "Startups", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2425985", "url": "https://www.pymnts.com/startups/2025/private-capital-gives-largest-us-startups-flexibility-to-delay-ipos/", "title": "Private Capital Gives Largest US Startups Flexibility to Delay IPOs", "content_html": "The largest startups in the United States are reportedly raising so much capital in private markets that they can delay launching initial public offerings (IPOs).
\nThese startups have raised the billions of dollars they need to continue growing and to enable employees to cash out stock options, without an IPO, the Financial Times (FT) reported Thursday (Jan. 10).
\nExamples include Databricks raising $10 billion in December, SpaceX raising $1.25 billion in November and OpenAI raising $6.6 billion in October, according to the report.
\nAfter raising funds like that, the country\u2019s largest startups have the flexibility to delay their potential IPOs beyond 2025, even as smaller startups are expected to go public this year to take part of the improved markets, per the report.
\nThis trend has been driven in part by the willingness of some venture firms to invest many times more than the $100 million that used to be the most a firm would invest in a single startup, the report said.
\nDatabricks, a data and artificial intelligence firm, said Dec. 17 that it was raising $10 billion of expected non-dilutive financing in a Series J funding round and had completed $8.6 billion at that point.
\nThe round is \u201csubstantially oversubscribed,\u201d Databricks Co-founder and CEO Ali Ghodsi said at the time in a press release.
\n\u201cThese are still the early days of AI,\u201d Ghodsi said. \u201cWe are positioning the Databricks Data Intelligence Platform to deliver long-term value for our customers, and our team is committed to helping companies across every industry build data intelligence.\u201d
\nOpenAI said Oct. 2 that it raised $6.6 billion in funding that valued the company at $157 billion and positioned it to accelerate its mission of developing and deploying AGI for the benefit of humanity.
\nThe ChatGPT creator said it plans to use the new capital to bolster its leadership in frontier AI research, expand computational capacity and enhance its suite of problem-solving tools.
\nIt was reported Jan. 2 that the number of active U.S. venture capital investors has fallen since 2021 as cautious financial institutions shift their money to Silicon Valley\u2019s biggest startups.
\nThe post Private Capital Gives Largest US Startups Flexibility to Delay IPOs appeared first on PYMNTS.com.
\n", "content_text": "The largest startups in the United States are reportedly raising so much capital in private markets that they can delay launching initial public offerings (IPOs).\nThese startups have raised the billions of dollars they need to continue growing and to enable employees to cash out stock options, without an IPO, the Financial Times (FT) reported Thursday (Jan. 10).\nExamples include Databricks raising $10 billion in December, SpaceX raising $1.25 billion in November and OpenAI raising $6.6 billion in October, according to the report.\nAfter raising funds like that, the country\u2019s largest startups have the flexibility to delay their potential IPOs beyond 2025, even as smaller startups are expected to go public this year to take part of the improved markets, per the report.\nThis trend has been driven in part by the willingness of some venture firms to invest many times more than the $100 million that used to be the most a firm would invest in a single startup, the report said.\nDatabricks, a data and artificial intelligence firm, said Dec. 17 that it was raising $10 billion of expected non-dilutive financing in a Series J funding round and had completed $8.6 billion at that point.\nThe round is \u201csubstantially oversubscribed,\u201d Databricks Co-founder and CEO Ali Ghodsi said at the time in a press release.\n\u201cThese are still the early days of AI,\u201d Ghodsi said. \u201cWe are positioning the Databricks Data Intelligence Platform to deliver long-term value for our customers, and our team is committed to helping companies across every industry build data intelligence.\u201d\nOpenAI said Oct. 2 that it raised $6.6 billion in funding that valued the company at $157 billion and positioned it to accelerate its mission of developing and deploying AGI for the benefit of humanity.\nThe ChatGPT creator said it plans to use the new capital to bolster its leadership in frontier AI research, expand computational capacity and enhance its suite of problem-solving tools.\nIt was reported Jan. 2 that the number of active U.S. venture capital investors has fallen since 2021 as cautious financial institutions shift their money to Silicon Valley\u2019s biggest startups.\nThe post Private Capital Gives Largest US Startups Flexibility to Delay IPOs appeared first on PYMNTS.com.", "date_published": "2025-01-10T14:27:42-05:00", "date_modified": "2025-01-10T14:27:42-05:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/08/funding.jpg", "tags": [ "funding", "initial public offerings", "IPOs", "News", "PYMNTS News", "Startups", "Venture Capital", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2308912", "url": "https://www.pymnts.com/startups/2024/payments-choice-will-help-surging-retail-startups-thrive-not-just-survive/", "title": "Payments Choice Will Help Surging Retail Startups Thrive, Not Just Survive", "content_html": "Starting a new business is an exercise in optimism. Entrepreneurs see an opportunity, often a local one \u2014 a vacuum where demand is there to be met, and money is to be made.
\nIn the latest data from the U.S. Census on business formation, November marked a month of optimism, it seems for retail. At a high level, business applications for tax IDs, adjusted for seasonal variation, reached nearly 449,000 last month.\u00a0
\nTax IDs are among the first steps in making a business more than a concept. The 449,000 number marks an increase of 5.5% compared to October 2024. Projected business formations, that is, the estimate of new startups that will result from the applications, reached almost 28,000. This is a 3.6% jump over October.
\nThe application gains are a month-over-month increase that has not been seen in about 3\u00bd years.
\nAmong industries, retail trade amounted to over 86,000 business applications, a 16% uptick from October. This sector accounted for 19% of all business applications in November, followed by business services (13%) and construction (10%). Overall, applications grew in 18 out of 19 sectors, the exception being mining, which was virtually flat (-0.2%)
\n
Together with business applications, the Census Bureau also provides projections on the likelihood that a business application turns into an employer business and the consequent number of startups that will derive from these applications. This forecast results in a potential 28,000 business for the year following November, 3.6% more than forecast in October.\u00a0 This is also a multiyear high. Again, retail was the leader here, as projected formations compared to October were up 12%.
\nPayments Are Keys to Success
\nAmong the considerations for these merchants \u2014 whether staying local or whether they intend to cross borders and tap markets internationally \u2014 lies payments choice.\u00a0
\nPYMNTS Intelligence found earlier this year that more than two-thirds of consumers said they\u2019d choose their merchants based on the ease and convenience of the shopping experience overall. That includes payment options, which sway the choices of 16% of individuals we surveyed. The urgency of payments optionality \u2014 especially in the digital realm \u2014 is underscored by the fact that, as recently as October, we found that \u00a070% of consumers consider the availability of their preferred payment method to be very or extremely influential when choosing an online store.
\nMain Street small businesses recognize the importance of selling online. In a recent dive into the business models of these smaller firms that are the mainstays of the U.S. economy, the data show that 66% of retail trade firms have a website, higher than the overall 57% across all industries that we surveyed.\u00a0
\nNot surprisingly, digital payment modalities are gaining favor. In past coverage, we noted that fewer than 60% of small businesses accept digital wallets. But half of all users, including 78% of Generation Z, would stop patronizing merchants that do not accept this payment method.
\nThe post Payments Choice Will Help Surging Retail Startups Thrive, Not Just Survive appeared first on PYMNTS.com.
\n", "content_text": "Starting a new business is an exercise in optimism. Entrepreneurs see an opportunity, often a local one \u2014 a vacuum where demand is there to be met, and money is to be made.\nIn the latest data from the U.S. Census on business formation, November marked a month of optimism, it seems for retail. At a high level, business applications for tax IDs, adjusted for seasonal variation, reached nearly 449,000 last month.\u00a0 \nTax IDs are among the first steps in making a business more than a concept. The 449,000 number marks an increase of 5.5% compared to October 2024. Projected business formations, that is, the estimate of new startups that will result from the applications, reached almost 28,000. This is a 3.6% jump over October.\nThe application gains are a month-over-month increase that has not been seen in about 3\u00bd years. \nRetail Leads the Pack\nAmong industries, retail trade amounted to over 86,000 business applications, a 16% uptick from October. This sector accounted for 19% of all business applications in November, followed by business services (13%) and construction (10%). Overall, applications grew in 18 out of 19 sectors, the exception being mining, which was virtually flat (-0.2%)\n\nTogether with business applications, the Census Bureau also provides projections on the likelihood that a business application turns into an employer business and the consequent number of startups that will derive from these applications. This forecast results in a potential 28,000 business for the year following November, 3.6% more than forecast in October.\u00a0 This is also a multiyear high. Again, retail was the leader here, as projected formations compared to October were up 12%. \nPayments Are Keys to Success\nAmong the considerations for these merchants \u2014 whether staying local or whether they intend to cross borders and tap markets internationally \u2014 lies payments choice.\u00a0 \nPYMNTS Intelligence found earlier this year that more than two-thirds of consumers said they\u2019d choose their merchants based on the ease and convenience of the shopping experience overall. That includes payment options, which sway the choices of 16% of individuals we surveyed. The urgency of payments optionality \u2014 especially in the digital realm \u2014 is underscored by the fact that, as recently as October, we found that \u00a070% of consumers consider the availability of their preferred payment method to be very or extremely influential when choosing an online store.\nMain Street small businesses recognize the importance of selling online. In a recent dive into the business models of these smaller firms that are the mainstays of the U.S. economy, the data show that 66% of retail trade firms have a website, higher than the overall 57% across all industries that we surveyed.\u00a0 \nNot surprisingly, digital payment modalities are gaining favor. In past coverage, we noted that fewer than 60% of small businesses accept digital wallets. But half of all users, including 78% of Generation Z, would stop patronizing merchants that do not accept this payment method. \nThe post Payments Choice Will Help Surging Retail Startups Thrive, Not Just Survive appeared first on PYMNTS.com.", "date_published": "2024-12-11T21:48:48-05:00", "date_modified": "2024-12-11T21:54:35-05:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/12/retail-open-startup.jpg", "tags": [ "business formation", "economy", "News", "payment options", "PYMNTS News", "Retail", "small business", "SMBs", "Startups" ] }, { "id": "https://www.pymnts.com/?p=2269099", "url": "https://www.pymnts.com/startups/2024/european-investment-bank-aims-to-provide-greater-support-to-startups/", "title": "European Investment Bank Aims to Provide Greater Support to Startups", "content_html": "The\u00a0European Investment Bank (EIB) said Monday (Oct. 7) that European Union (EU) finance ministers have welcomed its Action Plan to deepen the region\u2019s capital markets and provide more support to startups.
\nIn discussions at the\u00a0Eurogroup in Luxembourg, finance ministers supported proposals to finance the scale-up of European unicorns, the EIB said in a Monday\u00a0press release.
\n\u201cThe EIB Group is itself already a Capital Markets Union instrument,\u201d EIB Group President\u00a0Nadia Calvi\u00f1o said in the release. \u201cThe Action Plan discussed with ministers will help European innovators scale up their businesses and contribute to channel savings into productive investments, boost innovation, create jobs and lead Europe toward a more robust growth model, ensuring that European companies born in Europe, stay in Europe.\u201d
\nOne part of the Action Plan calls for the EIB Group to improve market integration for green and digital bonds by continuing to play a leading role in the market through issuance and scaling up bond acquisition, according to the release.
\nThe EIB Group also plans to help \u201cclose the financing gap\u201d and keep innovative scale-ups in Europe by scaling up its support for the EU venture capital and private equity markets, the release said.
\nThe third element of the Action Plan involves the EIB Group mobilizing large-scale investments for EU policy priorities, per the release. This could include, for example, working on a financing platform for housing.
\nThese efforts aim to solve the capital markets fragmentation that has been an impediment to European competitiveness and to develop cross-border capital markets that function well, according to the release.
\n\u201cThe EIB Group is uniquely positioned to support the development of a European Savings and Investments Union, as it is the only truly pan-European financial institution, with operations in every member state and every region of the EU,\u201d the release said.
\nIt was reported in April that EU nations need\u00a0private investments of 650 billion euros (about $706.5 billion) per year through 2030 to shift to renewable energy and a more digital economy.
\nAt the same time, investors currently find the U.S. market to be better organized, less complex and more liquid.
\nThe post European Investment Bank Aims to Provide Greater Support to Startups appeared first on PYMNTS.com.
\n", "content_text": "The\u00a0European Investment Bank (EIB) said Monday (Oct. 7) that European Union (EU) finance ministers have welcomed its Action Plan to deepen the region\u2019s capital markets and provide more support to startups.\nIn discussions at the\u00a0Eurogroup in Luxembourg, finance ministers supported proposals to finance the scale-up of European unicorns, the EIB said in a Monday\u00a0press release.\n\u201cThe EIB Group is itself already a Capital Markets Union instrument,\u201d EIB Group President\u00a0Nadia Calvi\u00f1o said in the release. \u201cThe Action Plan discussed with ministers will help European innovators scale up their businesses and contribute to channel savings into productive investments, boost innovation, create jobs and lead Europe toward a more robust growth model, ensuring that European companies born in Europe, stay in Europe.\u201d\nOne part of the Action Plan calls for the EIB Group to improve market integration for green and digital bonds by continuing to play a leading role in the market through issuance and scaling up bond acquisition, according to the release.\nThe EIB Group also plans to help \u201cclose the financing gap\u201d and keep innovative scale-ups in Europe by scaling up its support for the EU venture capital and private equity markets, the release said.\nThe third element of the Action Plan involves the EIB Group mobilizing large-scale investments for EU policy priorities, per the release. This could include, for example, working on a financing platform for housing.\nThese efforts aim to solve the capital markets fragmentation that has been an impediment to European competitiveness and to develop cross-border capital markets that function well, according to the release.\n\u201cThe EIB Group is uniquely positioned to support the development of a European Savings and Investments Union, as it is the only truly pan-European financial institution, with operations in every member state and every region of the EU,\u201d the release said.\nIt was reported in April that EU nations need\u00a0private investments of 650 billion euros (about $706.5 billion) per year through 2030 to shift to renewable energy and a more digital economy.\nAt the same time, investors currently find the U.S. market to be better organized, less complex and more liquid.\nThe post European Investment Bank Aims to Provide Greater Support to Startups appeared first on PYMNTS.com.", "date_published": "2024-10-07T19:41:37-04:00", "date_modified": "2024-10-07T19:41:37-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/10/European-Investment-Bank-EIB.jpg", "tags": [ "EIB", "EMEA", "EU", "Eurogroup", "European Investment Bank", "European Union", "funding", "international", "Investments", "News", "PYMNTS News", "small businesses", "SMBs", "Startups", "What's Hot", "working capital" ] }, { "id": "https://www.pymnts.com/?p=2054664", "url": "https://www.pymnts.com/startups/2024/venture-backed-startups-going-bankrupt-at-alarming-rate/", "title": "Venture-Backed Startups Going Bankrupt at Alarming Rate", "content_html": "Startup failures in the U.S. have surged by 60% in the past year, posing a threat to millions of jobs and potentially impacting the wider economy.
\nData from Carta, a provider of services to private companies, reveals that 254 venture-backed clients went bankrupt in the first quarter of 2024, a rate more than seven times higher than in 2019. Notable casualties include Tally, a financial technology company valued at $855 million, and desk rental company WeWork, which had raised $16 billion in debt and equity.
\nThe rise in startup shutdowns comes as funding for early-stage AI startups slows, leading to concerns of a tech bubble burst.
\nThe Financial Times reports that the funding slowdown is leading to a wave of failures, leaving venture capitalists on the outside looking in. This trend threatens other startups attempting to develop their own AI large language models and raises concerns that VCs cannot compete with Big Tech companies in terms of investment.
\nThe European Business Review argues that the coming wave of AI startup failures is a natural part of the technology’s evolution, clearing the way for innovation and paving the road to broad adoption. The report suggests that the most robust and viable AI companies, those that have identified specific problems and built practical solutions, will continue to thrive. Furthermore, the failures create opportunities for other companies to acquire talent and innovative technology.
\nHowever, the report also highlights the limitations of AI, including the difficulty of scaling due to hardware limitations and the need for significant processing power.
\nThe Wall Street Journal adds that many AI startups raised funds on a big vision without tangible examples or detail, leading to a struggle to develop AI large language models.
\nPYMNTS Intelligence’s research shows that despite big budgets and ambitions, most large companies are struggling to employ AI in meaningful ways, with a significant gap between the perceived potential of AI and its actual application in the corporate world.
\n\n
The post Venture-Backed Startups Going Bankrupt at Alarming Rate appeared first on PYMNTS.com.
\n", "content_text": "Startup failures in the U.S. have surged by 60% in the past year, posing a threat to millions of jobs and potentially impacting the wider economy.\nData from Carta, a provider of services to private companies, reveals that 254 venture-backed clients went bankrupt in the first quarter of 2024, a rate more than seven times higher than in 2019. Notable casualties include Tally, a financial technology company valued at $855 million, and desk rental company WeWork, which had raised $16 billion in debt and equity.\nThe rise in startup shutdowns comes as funding for early-stage AI startups slows, leading to concerns of a tech bubble burst.\nThe Financial Times reports that the funding slowdown is leading to a wave of failures, leaving venture capitalists on the outside looking in. This trend threatens other startups attempting to develop their own AI large language models and raises concerns that VCs cannot compete with Big Tech companies in terms of investment.\nThe European Business Review argues that the coming wave of AI startup failures is a natural part of the technology’s evolution, clearing the way for innovation and paving the road to broad adoption. The report suggests that the most robust and viable AI companies, those that have identified specific problems and built practical solutions, will continue to thrive. Furthermore, the failures create opportunities for other companies to acquire talent and innovative technology.\nHowever, the report also highlights the limitations of AI, including the difficulty of scaling due to hardware limitations and the need for significant processing power.\nThe Wall Street Journal adds that many AI startups raised funds on a big vision without tangible examples or detail, leading to a struggle to develop AI large language models.\nPYMNTS Intelligence’s research shows that despite big budgets and ambitions, most large companies are struggling to employ AI in meaningful ways, with a significant gap between the perceived potential of AI and its actual application in the corporate world.\n \nThe post Venture-Backed Startups Going Bankrupt at Alarming Rate appeared first on PYMNTS.com.", "date_published": "2024-08-19T06:43:59-04:00", "date_modified": "2024-08-19T06:43:59-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/02/WeWork.jpg", "tags": [ "AI", "bankruptcy", "fundiung", "Innovation", "Investment", "News", "PYMNTS Intelligence", "PYMNTS News", "Startups", "venture capitalists" ] }, { "id": "https://www.pymnts.com/?p=2051107", "url": "https://www.pymnts.com/startups/2024/visa-inclusive-fintech-accelerator-seeks-applications-second-cohort/", "title": "Visa Aims for Diversity With Call for New Fintech Accelerator Applications", "content_html": "Visa and innovation platform Plug and Play are accepting applications for the second cohort of the Visa Inclusive Fintech Accelerator, which aims to accelerate the growth of FinTech startups led by diverse founders.
\nThe companies are seeking applications from FinTech startups that meet one or more of the following qualifications: led by a founder who identifies as underrepresented, committed to serving underserved segments in North America, has demonstrated passion and commitment to inclusion, and/or has demonstrated resilience in their paths in the FinTech space, they said in a Monday (Aug. 12) press release.
\nApplicants must have a minimum viable product and be based in and conduct business within the United States or Canada, according to the release.
\nThose who are selected for the accelerator program will gain exclusive access to Visa\u2019s network and resources, receive mentorship from industry leaders, and be considered for pilot projects and strategic partnerships with Visa, the release said.
\nThe six-month program will culminate with a showcase at a Plug and Play summit in Silicon Valley in June 2025, per the release.
\n\u201cWe introduced the Visa Inclusive Fintech Accelerator to drive greater innovation and progress by championing diversity,\u201d Vanessa Colella, global head of innovation and digital partnerships at Visa, said in the release. \u201cWe are so proud of our first cohort and all they accomplished and are thrilled to begin our search for the program\u2019s second cohort to uplift more diverse FinTech founders and their brilliant ideas.\u201d
\nThe initial cohort of the Visa Inclusive Fintech Accelerator was announced in January and included 21 startups, according to a Jan. 16 press release.
\nAmong the FinTech solutions being developed by these startups were ones for money movement, consumer banking and lending, and social and creators, according to the release.
\nAlso in January, Visa Canada said it would support the entrance of Plug and Play into the Canadian FinTech market, enabling Canadian FinTechs to access Visa\u2019s global network; join exclusive, interactive events; and connect with new partners.
\nVisa is a founding sponsor of Plug and Play, which is headquartered in Silicon Valley and operates from more than 60 locations on five continents.
\nThe post Visa Aims for Diversity With Call for New Fintech Accelerator Applications appeared first on PYMNTS.com.
\n", "content_text": "Visa and innovation platform Plug and Play are accepting applications for the second cohort of the Visa Inclusive Fintech Accelerator, which aims to accelerate the growth of FinTech startups led by diverse founders.\nThe companies are seeking applications from FinTech startups that meet one or more of the following qualifications: led by a founder who identifies as underrepresented, committed to serving underserved segments in North America, has demonstrated passion and commitment to inclusion, and/or has demonstrated resilience in their paths in the FinTech space, they said in a Monday (Aug. 12) press release.\nApplicants must have a minimum viable product and be based in and conduct business within the United States or Canada, according to the release.\nThose who are selected for the accelerator program will gain exclusive access to Visa\u2019s network and resources, receive mentorship from industry leaders, and be considered for pilot projects and strategic partnerships with Visa, the release said.\nThe six-month program will culminate with a showcase at a Plug and Play summit in Silicon Valley in June 2025, per the release.\n\u201cWe introduced the Visa Inclusive Fintech Accelerator to drive greater innovation and progress by championing diversity,\u201d Vanessa Colella, global head of innovation and digital partnerships at Visa, said in the release. \u201cWe are so proud of our first cohort and all they accomplished and are thrilled to begin our search for the program\u2019s second cohort to uplift more diverse FinTech founders and their brilliant ideas.\u201d\nThe initial cohort of the Visa Inclusive Fintech Accelerator was announced in January and included 21 startups, according to a Jan. 16 press release.\nAmong the FinTech solutions being developed by these startups were ones for money movement, consumer banking and lending, and social and creators, according to the release.\nAlso in January, Visa Canada said it would support the entrance of Plug and Play into the Canadian FinTech market, enabling Canadian FinTechs to access Visa\u2019s global network; join exclusive, interactive events; and connect with new partners.\nVisa is a founding sponsor of Plug and Play, which is headquartered in Silicon Valley and operates from more than 60 locations on five continents.\nThe post Visa Aims for Diversity With Call for New Fintech Accelerator Applications appeared first on PYMNTS.com.", "date_published": "2024-08-12T13:29:00-04:00", "date_modified": "2024-08-12T22:22:48-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/12/Visa-FinTech.jpg", "tags": [ "FinTech", "Innovation", "News", "partnerships", "plug and play", "PYMNTS News", "Startups", "Visa", "Visa Inclusive Fintech Accelerator", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=1966559", "url": "https://www.pymnts.com/startups/2024/fundpark-gets-250-million-dollars-chinese-working-capital-projects/", "title": "FundPark Gets $250 Million for Chinese Working Capital Projects", "content_html": "Hong Kong-based FinTech FundPark reportedly obtained a $250 million private loan led by HSBC.
\nThe loan is the second investment of this type FundPark has received this year, Bloomberg reported Monday (June 24).
\nIt comes from HSBC\u2019s $3 billion \u201cnew economy\u201d facility, which is focused on technology and healthcare in Hong Kong and mainland China, said Hay Yip, FundPark\u2019s chief strategy officer and chief of staff, per the report.
\nMost of the loan \u2014 $200 million \u2014 comes from HSBC, and the remainder comes from other partners. It follows another $250 million loan from senior lender Goldman Sachs and other partners in January.
\nFundPark provides working capital to companies, primarily small- and medium-sized eCommerce firms in China.
\nThere is a working capital revolution happening now that \u201cis increasingly driven by innovation and made more necessary by the macroeconomic backdrop, particularly for those middle-market firms generating annual revenues between $50 million and $1 billion,\u201d PYMNTS wrote last month.
\nAs more companies seek out and put outside capital to work, they are learning that today\u2019s working capital solutions are offering them the cash flow requirements necessary to meet the day-to-day needs of their businesses, along with the flexibility to scale and thrive in the long term.
\n\u201cThe tightening of monetary policy and inflationary pressures have suddenly made a lot of these corporates realize they need working capital for two reasons,\u201d Chavi Jafa, head of commercial and money movement solutions, Asia Pacific, at Visa, told PYMNTS. \u201cOne, for short-term working capital to make sure that they don\u2019t have any operational disturbances. And two, for strategic long-term investments into newer technologies and digital solutions.\u201d
\n\u201cIn a lot of emerging economies, [we are seeing] a leapfrogging of technology and digital-first solutions, and it\u2019s this corporate segment that tends to drive a lot of the growth in digital economization \u2014 they need that working capital to invest,\u201d Jafa added.
\nWhen compared to traditional working capital solutions that include overdraft facilities and working capital loans, today\u2019s alternative offerings, such as virtual cards, have become increasingly important for organizations in search of sustainable growth.
\nThe post FundPark Gets $250 Million for Chinese Working Capital Projects appeared first on PYMNTS.com.
\n", "content_text": "Hong Kong-based FinTech FundPark reportedly obtained a $250 million private loan led by HSBC.\nThe loan is the second investment of this type FundPark has received this year, Bloomberg reported Monday (June 24).\nIt comes from HSBC\u2019s $3 billion \u201cnew economy\u201d facility, which is focused on technology and healthcare in Hong Kong and mainland China, said Hay Yip, FundPark\u2019s chief strategy officer and chief of staff, per the report.\nMost of the loan \u2014 $200 million \u2014 comes from HSBC, and the remainder comes from other partners. It follows another $250 million loan from senior lender Goldman Sachs and other partners in January.\nFundPark provides working capital to companies, primarily small- and medium-sized eCommerce firms in China.\nThere is a working capital revolution happening now that \u201cis increasingly driven by innovation and made more necessary by the macroeconomic backdrop, particularly for those middle-market firms generating annual revenues between $50 million and $1 billion,\u201d PYMNTS wrote last month.\nAs more companies seek out and put outside capital to work, they are learning that today\u2019s working capital solutions are offering them the cash flow requirements necessary to meet the day-to-day needs of their businesses, along with the flexibility to scale and thrive in the long term.\n\u201cThe tightening of monetary policy and inflationary pressures have suddenly made a lot of these corporates realize they need working capital for two reasons,\u201d Chavi Jafa, head of commercial and money movement solutions, Asia Pacific, at Visa, told PYMNTS. \u201cOne, for short-term working capital to make sure that they don\u2019t have any operational disturbances. And two, for strategic long-term investments into newer technologies and digital solutions.\u201d\n\u201cIn a lot of emerging economies, [we are seeing] a leapfrogging of technology and digital-first solutions, and it\u2019s this corporate segment that tends to drive a lot of the growth in digital economization \u2014 they need that working capital to invest,\u201d Jafa added.\nWhen compared to traditional working capital solutions that include overdraft facilities and working capital loans, today\u2019s alternative offerings, such as virtual cards, have become increasingly important for organizations in search of sustainable growth.\nThe post FundPark Gets $250 Million for Chinese Working Capital Projects appeared first on PYMNTS.com.", "date_published": "2024-06-25T15:04:55-04:00", "date_modified": "2024-06-25T22:53:12-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/06/FundPark.png", "tags": [ "B2B", "B2B Payments", "china", "commercial payments", "FinTech", "funding", "FundPark", "Hong Kong", "HSBC", "international", "loans", "News", "PYMNTS News", "Startups", "What's Hot", "What's Hot In B2B", "working capital" ] } ] }