Fast Track #2

Oct 17, 2023

Greetings YellowJackets and other readers! Welcome to Fast Track by Fintech @ GT!

We have an important announcement to make! Fast Track is becoming a biweekly publication. This means you regularly get a dose of the latest Fintech happenings, jobs, and other valuable opportunities. So, if you have not already subscribed to our letter, do that. If you have already subscribed, show us some love and share it with your friends.

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Ever wonder how Plaid is able to connect to your bank account and make payments seamlessly or how SoFi provides convenient services while being tightly integrated with the existing financial ecosystem? This time, we are shining the spotlight on some of our own work. Our research group has published a piece on how API-driven banking works, the opportunity it presents for incumbents and startups, and the regulatory landscape in the future. Find it here: The Backend of Banking: Exploring the World of API-driven Financial Services

Hot off the Press

Braid Shuts Down After 4 Years

Braid, a startup focused on facilitating shared wallets, has ceased operations despite its innovative approach to pooled finances, and $10 million in funding from notable investors like Index Ventures and Accel. Founded by Amanda Peyton and Todd Berman in 2019, Braid offered FDIC-insured, multi-user accounts for collective financial goals. However, the venture hit a snag post-issues with a sponsor bank in 2022, significantly impacting its payment processing. Despite overcoming this hurdle, Braid struggled with third-party software integrations, affecting its pace and core offerings. Post-shutdown, Peyton acquired Braid's intellectual property, reflecting her ongoing enthusiasm for the fintech and payments sector.

Find Amanda’s analysis of her journey with Braid here: Braid Is Dead, Long Live Braid.

Stash Raises $40 Million in Fresh Capital

Investing app Stash has secured $40 million via a convertible note, led by early supporter T. Rowe Price, avoiding a priced round due to market volatility and its nearing profitability, as per CEO Liza Landsman. This fund-raising method provides a runway to profitability without setting a valuation, highlighting the investor advantage in the current market. Stash, aiming to provide affordable investment means to lower and middle-income individuals, plans to go public soon. The firm appointed former NYSE CFO Amy Butte as its first independent audit chair, a step towards ensuring public market readiness. Stash, competing with Acorns and Robinhood, emphasizes long-term investments over frequent trades, distinguishing its revenue model primarily based on subscriptions.