In just a few years, technology has radically transformed the financial services landscape and a new wave of financial technology (FinTech) companies has emerged to meet unmet needs and serve the underserved.
As the financial services ecosystem has become increasingly interconnected, FinTech start-ups are working in partnership with the very institutions they have historically competed with for share of voice, market and wallet. In response to this evolution, our investment banking teams have developed a unique, integrated approach to supporting FinTech clients, as deployed in recent deals for our clients Brex and Transactis.
FinTech start-ups face unique challenges at each stage of growth, and their innovative models often don’t fit into legacy strategies for scaling through outside investment. To grow, they need partners who understand the value and potential of their tech, and have a vast knowledge of the financial services industry and regulatory landscape.
More established start-ups, who have already attracted initial outside investment, often need to reassess their financing strategy, be it for correspondent banking agreements with other banks or debt financing, structuring and introductions to private capital.
This was the case with our client Brex, a business-to-business financial services company that offers corporate credit card services tailored for technology companies. Brex had launched a credit card for start-up founders and was looking for more efficient sources of capital to enable them to serve more customers. In order to move to the next stage in its business plan of launching a corporate card, they needed a new approach to debt funding.
Their Barclays advisory and capital markets team had a deep understanding of Brex’s business thanks to our FinTech, payments and card expertise. They also had existing relationships with Brex’s management and investors and were able to closely align Barclays coverage and warehouse financing teams. This meant we could offer a debt funding commitment that ensured Brex’s impressive growth could continue unimpeded.
Barclays completely embraced our vision and ambition and have been steadfast in extending their support. We are excited to continue to grow our relationship with Barclays as Brex continues to innovate and scale.Henrique Dubugras, Founder & Co-CEO, Brex
We are fervent supporters of Brex and are very proud to be an early partner to them. By moving precisely and quickly in this case, we enabled the Brex management team to remain focused on the continued growth and innovation of their business, which we are very excited to see continue.Henry Pinnell, Co-Head of Emerging FinTech, Banking
For mature and later stage fintechs, who may have completed several funding rounds and are perhaps looking towards an IPO, merger or acquisition, the challenge is to prepare and present the business to ensure the best possible outcome for clients and their stakeholders.
This principle was at the forefront of Barclays’ work with our client Transactis, a business-to-business and consumer-to-business billing and payments company that uses advanced technology to simplify receivables management and is delivered to market through banks and service providers that support millions of companies.
Transactis had reached a landmark stage in its 10-year journey, and was reconsidering the best investor mix for the future. Their Barclays team’s sharp instincts around managing their current investor portfolio and deep knowledge of potential investors convinced Transactis to partner with us on the sale of their business to Mastercard.
Our collaboration across industry groups is what differentiates our approach to the unique needs of FinTech clients. We have a team of people who really know the banks, and a team who really know the technology, and together we make a diverse, collaborative, global unit, that plays across a wide spectrum of knowledge, new technologies, ideas and business models.Jason Whiting, Managing Director, Co-Head of Banks & Specialty Finance, Banking
Barclays helped Transactis craft a solid story around their financials that elevated numbers on a page into a compelling narrative that demonstrated the company’s high-growth trajectory. Barclays also alleviated the rigors of due diligence, which often overwhelms growth stage companies, by extending our own resources to help manage the process.
Barclays’ extensive worldwide reach in the FinTech and payments industries helped ensure the right deal came together. We set a high bar to ensure the best outcome for our clients, our employees and our investors. Because the Barclays team already knew our existing strategic shareholders as well as Mastercard, they were able to successfully execute on our goals while maximizing returns for all our stakeholders. Their ability to navigate and support us through the complexities of our priorities set Barclays apart as the best partner for Transactis.Joe Proto, Founder & CEO, Transactis
Rise, created by Barclays, and the Barclays Accelerator, powered by Techstars programme, offer our colleagues the opportunity to further explore the future of financial solutions while helping startups turn ideas into products and services.
Our four state-of-the-art Rise co-working spaces in London, New York, Tel Aviv and Mumbai, are home to approximately 150 FinTech companies from around the world. Award-winning programmes such as the Barclays Accelerator, powered by Techstars, are run out of Rise, providing start-ups with access to relevant expert mentoring, sponsorship and showcasing opportunities.
Barclays employees help these companies establish industry connections, exchange ideas as part of a community, and refine and polish their business plans and products to attract early investment. We bring the best of Barclays’ global capabilities and knowledge to these companies at each stage of their lifecycle, so we can learn from their insights as they focus on transforming the future of our industry.