Typically, when people think about top places to establish a financial tech startup, they think of Los Angeles, New York or Silicon Valley. However, there is one place being overlooked: Wisconsin. According to WisBusiness, Wisconsin is quickly becoming a leader in the fintech industry.
WisBusiness also reported that the COVID-19 pandemic provided a boost to many new fintech companies, as many payment systems became primarily virtual. For instance, Fiserv Inc., a global financial technology and services company based in Brookfield, saw its 2020 revenue increase 46% to $14.85 billion.
WISCONSIN VC INVOLVEMENT IN FINTECH
With the rise of fintech startups around the country, a couple of Wisconsin venture funds have recently launched.
Northwestern Mutual’s Future Ventures was built with the goal to support a future of financial security. Its portfolio includes Chime, a banking platform, and Hello Divorce, a website that helps people through the divorce process at lower prices.
Similarly, CUNA Mutuals’ CMFG Ventures only invests in startups that would ultimately support their banking customers, including Affirm, which provides small installment loans for purchases, and Constellation, which helps to connect credit unions to fintech developers.
Even funds that don’t have a specific fintech focus have invested in this industry. 4490 Ventures, for example, has invested in SwervePay, which has created a cloud-based payment system for healthcare patients and car dealerships.
Bascom Ventures, which prides itself in its diversified portfolio, is currently investing in Securrency, a financial trading platform, and FinLocker, a financial data platform for lenders.
WISCONSIN FINTECH STARTUPS
As illustrated above, the increase of support for fintech-related startups in Wisconsin has made it an ideal place for fintech companies to grow.
For example, Sift Healthcare was founded in 2017 and is based in Milwaukee. It focuses on using AI and machine learning to transform healthcare payments. The startup has grown quickly, and as of today, it has raised a total of $7 million.
Milwaukee-based Socialeads is a platform that uses AI to analyze social networks and connects users based on financial well-being and other life events. To date, it has raised a total of $2.7 million since its 2018 founding and is currently raising a Series A round.
eCIO is a Madison-based platform that provides investment management solutions to nonprofits. It was founded in 2019 and raised $2.2 million in 2020. The startup most recently participated in the 2021 Forward Festival Pressure Chamber event.
Quiver Quantitative, a Madison-based alternative data platform for investors, was founded in February 2020 by two University of Wisconsin students and has raised $625,000. The data it provides has been a lead source in the Reddit vs. Wall Street conversation.
Founded in 2020, PerceptForm is a Milwaukee-based blockchain learning platform and cryptocurrency service that focuses on minority populations. So far, it has raised $15,000.
I would also add Spree, Investii, & Debtle as fintech startups that are WI-based. And AmFam’s fund and their investment in Honeycomb Credit (which is already enabling small businesses in Milwaukee to borrow or raise funding from their customers).