Angel Investor Becomes Co-Founder of Promising Startup

TechCrunch Fintech: This Week's Highlights

Greetings from TechCrunch Fintech! This week’s coverage focuses on an innovative startup leveraging AI to simplify long-term care planning.

We’ll also examine recent developments in the African fintech landscape, analyze another fintech company’s closure, and present additional noteworthy news.

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AI-Powered Long-Term Care Navigation

A new company is emerging with a solution designed to assist individuals in managing the complexities of long-term care. This is being achieved through the implementation of advanced artificial intelligence.

The platform aims to streamline the process of understanding options and making informed decisions regarding future care needs.

Fintech Activity in Africa

The African fintech sector is currently experiencing a period of heightened activity. Several companies are expanding their services and attracting investment.

This growth is driven by increasing mobile penetration and a demand for innovative financial solutions.

Fintech Company Shutdown

Unfortunately, another fintech company has recently ceased operations. The reasons behind this closure are currently under review.

This event serves as a reminder of the challenges inherent in the competitive fintech market.

Additional Fintech News

Beyond these key stories, several other developments are shaping the fintech landscape. These include:

• New partnerships between established financial institutions and fintech startups.
• Regulatory changes impacting the fintech industry.
• The continued rise of blockchain technology in financial services.

Addressing a Critical Need

The subject of long-term care is frequently overlooked until it becomes a pressing concern, often triggered by age or unforeseen circumstances. For many, proactive consideration is delayed until a crisis emerges. This issue holds particular significance for me, having witnessed the challenges faced by my brother and mother as they navigated illnesses requiring extensive long-term care.

Securing suitable care can prove difficult, and the associated financial burden is substantial – even with insurance coverage. Therefore, I found myself particularly interested when presented with a startup leveraging artificial intelligence to simplify long-term care planning.

Waterlily's Founding Story

Lily Vittayarukskul launched Waterlily in late 2021. Her motivation stemmed from a deeply personal experience: her family’s financial strain while providing care for an aunt diagnosed with terminal colon cancer. The company’s core function is to utilize AI to forecast a family’s prospective long-term care requirements and expenses.

Waterlily then provides guidance on developing a comprehensive care strategy and determining optimal funding methods. This proactive approach aims to alleviate the financial and logistical complexities often associated with long-term care.

From Investor to Co-Founder

Initially, Vittayarukskul operated Waterlily as a solo founder. However, the company’s potential quickly attracted the attention of Evan Ehrenberg, an angel investor. Ehrenberg, previously the founder and seller of Clara Health, contributed to initial research and observed a strong positive industry reaction.

He personally tested the Waterlily platform and was surprised by the projections regarding his own future long-term care needs. This prompted him to modify his lifestyle, including adopting a healthier diet, engaging a personal trainer, and revising his financial arrangements.

This experience led to a deeper involvement. By 2022, Ehrenberg – holding a neuroscience PhD from MIT at a young age – had transitioned into the role of co-founder at Waterlily, demonstrating a strong belief in the company’s mission and potential.

Key Features of Waterlily

• Predictive AI: Forecasts future long-term care needs.
• Cost Estimation: Calculates anticipated expenses.
• Care Plan Development: Assists in creating a tailored care strategy.
• Financial Guidance: Offers support in securing funding.

Financial Updates in the Fintech Sector

Moove, a mobility fintech company supported by Uber, which provides vehicle financing to drivers of ride-hailing and delivery applications across six continents, has completed the acquisition of Kovi, a Brazilian urban mobility company. According to Moove’s co-founder and co-CEO, Ladi Delano, this acquisition elevates the fintech’s yearly revenue to $275 million.

Previously, in March of the prior year, Moove had reported an annual recurring revenue (ARR) of $115 million.

The Rise of Modular Platforms

Formance posits that a modular platform, akin to Amazon Web Services’ cloud hosting model, presents significant advantages. It’s more cost-effective to consolidate all cloud infrastructure under a unified system, even while utilizing individual services.

The company recently secured $21 million in funding, with PayPal Ventures and Portage co-leading the investment round.

Expansion of Embedded Banking Services

Swan, a French startup specializing in embedded banking, has successfully raised an additional €42 million, which translates to approximately $44 million based on current exchange rates.

This funding round is viewed by the company as a continuation of the Series B initially announced in September 2023.

Cross-Border Payments and Stablecoins

Cedar Money has secured $9.9 million in seed funding, led by QED Investors. Similar to other cross-border payment platforms leveraging stablecoins, Cedar Money functions as an intermediary.

Operations commenced in early 2024, with Nigeria as the initial operational base.

Strengthening Payment Rails in Africa

Cauridor, a fintech company based in Guinea, recently obtained $3.5 million in seed funding to further develop its payment infrastructure.

This infrastructure facilitates the movement of funds between merchants, banks, telecom operators, and money transfer services both within and outside of Africa.

Recent Developments in Fintech and Beyond

The Consumer Financial Protection Bureau (CFPB) has levied a fine of roughly $2 million against Wise, a remittance company headquartered in the U.K. This action was taken due to a reported pattern of unlawful practices.

Cushion, a fintech company positioning itself as the connective tissue for "buy now, pay later" (BNPL) services – akin to Plaid – has ceased operations. Its founder, Paul Kesserwani, stated that the business failed to achieve the necessary scale for long-term viability despite successful product launches.

X, the social media platform owned by Elon Musk, has revealed a collaboration with Visa. This partnership is intended to facilitate peer-to-peer payments through the forthcoming X Money feature.

Alan, a health insurance provider serving 700,000 customers, is demonstrating continued growth despite its established position. The company aims to evolve into a comprehensive digital health companion.

Victor D. Lombard, known professionally as DIVINE, a seasoned entrepreneur and musician, has unveiled a new fintech venture tailored for musicians. This initiative is being launched in collaboration with RAKIM, a highly respected figure in hip-hop.

The expansion of stablecoins – currently a $205 billion market – is primarily fueled by practical applications, rather than speculative trading. This growth is particularly noticeable in developing economies where significant use cases are emerging, as detailed in an analysis by Tage Kene-Okafor.

Recent Developments in Finance and Technology

Nu Mexico has achieved a significant landmark, surpassing 10 million customers.

Closinglock, a company focused on preventing real estate fraud, has successfully raised $34 million in funding.

Donald Trump is projected to benefit substantially, potentially gaining $250 million, following his media company's expansion into the financial services sector.

Itaú Unibanco is making a considerable investment in artificial intelligence through its backing of NeoSpace.

Jump, a startup specializing in AI solutions for financial advisors, has finalized a $20 million Series A funding round.

Further updates and breaking news in the fintech world can be found by following @bayareawriter on X, along with insights on coffee and other topics.