The CB Insights quarterly counts can be revised higher too, as evidenced by the research firm’s new worldwide figure for the year-ago quarter. Last year, the firm reported 73 payments startups raised $1.1 billion in the third quarter of 2023, but it increased that count by a third in the latest report. CB Insights revised the figure this year as it tracked more startups, collecting additional data, a spokesperson for the firm said by email.

U.S. companies that attracted funding during the third quarter this year included some names still gaining traction in the industry. Bilt Rewards, the New York loyalty program firm that lets renters accumulate rewards for paying rent, drew the most money during the quarter, taking in $150 million from the Ontario Teachers' Pension Plan; Vanderbilt University Endowment and the University of Illinois Foundation.

Bilt Rewards is led by by founder and CEO Ankur Jain, with guidance from an industry stalwart, former American Express CEO Ken Chenault, who was appointed as the company’s chairman earlier this year. Bilt Rewards is chalking up partnerships, including two disclosed last week with hotel loyalty program company Accor and the airline TAP Air Portugal, to increase the ways that users can collect points for travel, fitness programs and dining, among other options. The latest investment from the universities follows on a $200 million round of venture capital for the company disclosed by the company in January.

Three other U.S. companies that drew venture funding during the quarter included book-keeping and payments services company Finally; restaurant payments play Menusifu; and truck fleet card services provider Coast, according to the CB Insights report.

Miami-based Finally, led by CEO and founder Felix Rodriguez, provides bill-payments, payments processing and payroll services, among record-keeping assistance for small and mid-sized businesses. The business raised $50 million last month.

New York startup, Coast, said in July that it raised $40 million from the venture capital firms Accel, Insight Partners and Thomvest, among others. The company aims to provide U.S. trucking fleets and their drivers with modernized digital tools for paying with cards on the road.

Another New York company, Menusifu also raised $40 million, according to a release last month, giving it capital to continue building its restaurant and catering management tools.

For all the venture capitalists seeking a payout on those investments, an acquisition of startups is still the most common way to cash out, according to the CB Insights report. During the third-quarter, 13 startups were acquired or merged into other companies while just one was involved in a special purpose acquisition company transaction, the report said. There were no initial public offerings for payments firms during the quarter.

By Lynne Marek on Oct 15, 2024
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