Venture capital: growing investment in startups for international money transfer

, ,
Integral service around a transaction
BY : Diego GutiérrezNovember Wed, 2013

venture capital, accelerator-incubatorThe venture capital is is seeing an opportunity to investment in startups developing new technologies for international money transfers that help to eliminate some of the forms, costs and timescales of traditional systems. In the last 2 years they have inverted $104M in 39 transactions according to cbinsights sources.

Traditionally, international remittance customers have relied on physical-based companies for their transactions. The dominant player in this market has so far been Western Union, which today has a market capitalisation of more than $ 9.5B.

Looking at year-on-year developments, business activity in the international money transfer space has increased by 60%. The successful IPO of money transfer services company Xoom Corp (backed by NEA and Sequoia Capital) in February may be one reason for the notable increase in business activity.

The 79% of the early stage operations

Over the past two years, early stage deals (seed and Series A) have accounted for 79% of deal activity in the money transfer market. In fact, M&A activity in seed stage startups has accelerated by 160% on a year-over-year basis with new companies recently receiving investment as TechStars grad Moni Technologies and Azimo funded by Of note in the growth of activity in seed stage companies is the decrease in the average and median deal size in recent quarters. From 4Q'11 which included a $ 25M round to Xoom, the average transaction size has been reduced by 70% and the median by 88%.

"This effect has also been generalised in start-up investment, which has seen a reduction in the amount of operations on both sides of the Atlantic. In Spain, too, there have been deals in Fintech. The startup Kantox is the most relevant for the international transfers segment, it allows hedging the exchange rate risk at an adjusted price without requiring any type of guarantee to execute the operation" analyses Diego Gutiérrez, corporate finance expert at Abra Invest.

50% of the operations have been born outside the major US technology hubs.

Interestingly, most of the technology companies present in the international remittance sector are outside Silicon Valley, in fact, 50% is outside the North American technology hubs with a prominent presence from London with startups like TransferWise, The Currency Cloud and Azimo. 


venture capital, accelerator-incubator


The M&A Professionals

Meet our services



Do you want to be up to date?


Our diferentiation

Market Research Technology
Our team of market analysis specialists is continuously analyzing the investments of the most active markets in the industry in order to unceasingly contribute ideas of the current market situation and identify the most relevant trends for senior management. We integrate the most relevant sources of information which allows us to discover the most interesting companies for venture capital and similarly helps us to identify the investors with the highest probability of involvement in an M&A process to ensure the success of our sell-side operations.

The reports and deductions of our advisors provide a broad view of the sector, both geographically and from the complementary or adjacent markets perspective.
Technology Data Analytics
for M&A
Advanced data anlytics is a weapon". Intelfin is an artificial intelligence tool we use for investing and creating value in SMEs through competitive analytics and the enterprise environment.

IntelFin consists of a cognitive system, which, through the application of advanced analytical technologies, facilitates the automation of investment and financing decisions in the field of non-listed companies and especially SMEs in high-growth sectors.

The information related to these companies is characterized by their lack of transparency and heterogeneity; thus, it is necessary to develop an advanced analysis which is as much predictive as prescriptive and is developed in a natural language custom, suitable to obtain greater clarity and knowledge of the investment scope.

The IntelFin system focuses especially on analyzing the variables that define and influence the competitive environment of a sector and the positioning of a company, analyzing their influence on future value creation. Therefore, IntelFin supports strategic decision-making to senior management by resolving questions such as:

¿What are my competitors' priorities, strategies and expansion plans? Who's my competition? Which competitor is most likely to grow at a higher rate?
Which areas of activity/business models will receive the most investment? Which sectors are most attractive to investors?
Which companies are going to experience the most growth in the near future? Which companies are most likely to receive investment or be acquired?
Training Methodology
We have developed training programs in an innovative set-up which guarantees our teams the acquisition of technical competences both in the field of corporate finance and in the field of psychology, that is much needed when it comes to negotiation processes.

We have a culture of continuous improvement of our processes, closely related to the use of information systems that allow the enhancement of internal communication between our teams, as well as external communication with our customers. Hence, we extend best practices identified internally in an efficient and rapid manner among our members.

Are you one of those who prefer to be well informed when making decisions?