Fintech Founders Making Headlines
Last week brought news of both success and failure in the fintech world. Amanda Peyton, co-founder of Braid, a startup that developed a shared wallet for pooling money among friends and family, shared the candid story of its demise. Despite accepting responsibility for the failure, Peyton remains optimistic about the future. With a history of successful ventures, including one that sold to Etsy, it’s likely that we’ll be hearing about Peyton’s next venture soon.
Key Takeaway
Braid, a startup that developed a shared wallet, shut down due to challenges with finding a sponsor bank and reliance on third-party software. However, co-founder Amanda Peyton remains optimistic and is expected to embark on a new venture soon. Meanwhile, Stash, an investing app, secured funding and is actively working towards an IPO.
On the other hand, Stash, an investing app targeting lower- to middle-income consumers, secured $40 million in funding and is now preparing for an IPO. CEO Liza Landsman revealed that the company had downsized its staff by over 35% in the past 22 months, a move that investors often appreciate as it demonstrates efforts to reduce expenses. Stash also announced the appointment of Amy Butte as its first independent audit chair, further bolstering its preparations for the public market.
When Fintech Relationships Sour
In the world of fintech, partnerships are crucial for success. However, sometimes relationships between fintech companies and banks can come to an end. This was the case with Synapse, a platform that enables banking and fintech companies to develop financial services, and Evolve Bank & Trust, a banking partner. When Evolve decided to work exclusively with business banking startup Mercury, Synapse was notified and discussions were held to wind down the relationship. Unfortunately, this process became messy when private letters between the two companies were made public, creating tensions. Both Synapse and Evolve have since made statements to clarify the situation and clear the air.
