How did AI really transform fintech? 🤔
Necessary Nuggets
Happy Wednesday! If you’re new here, welcome to Necessary Nuggets, your one-stop pre-seed shop. We deliver updates from Necessary Ventures and helpful tidbits on our little corner of the world. Every edition is also on our blog.
Jobortunities 🚨
✨NEW FEATURED ROLE✨
Copper: Rethinking the induction stove and making kitchen electrification more accessible than ever. Picture a fossil-free future, without sacrificing aesthetics.
| Senior Embedded Systems Engineer |
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Reach out with any questions! All 164 open job postings are listed here.
Market Stirrings 🚩
Here's what the week looked like in pre-seed:
$22.9M
Total Amount Raised
11
Total Funding Rounds
$2.1M
Average Dollars per Round
$10.4M-$20.8M
Estimated Valuation Range
Data aggregated from proprietary research and Crunchbase; valuation estimate based on 10-20% ownership stake.
MONEY PIE
The November pre-seed breakdown is in. Like the rest of 2024, AI companies took the largest piece of the pie, raising 34.8% of all capital in November. Second and third to that were healthtech and fintech. Together, all three of those sectors accounted for nearly three-fourths of November’s fundraising dollars.
Good Reads 📖
For the rushed reader …
Penny Jar Capital, the early-stage VC firm co-founded by former Steph Curry business manager Bryant Barr and ex-SC360 partner Richard Scudellari, is gearing up for Fund II.
AI-powered proofreading giant Grammarly announced that it’s acquiring Coda, the all-in-one productivity platform.
AI was supposed to be the game-changer for fintech, but truly transformative tools like adaptive financial modeling or real-time fraud prevention are still beyond the reach of smaller players.
For the less rushed reader …
A VC FIRM IS SHOOTING ANOTHER SHOT: Another superstar fund has entered the solar system. Penny Jar Capital, the early-stage VC firm co-founded by former Steph Curry business manager Bryant Barr and ex-SC360 partner Richard Scudellari, is gearing up for Fund II — though, without a target fund size. In October, they filed to raise two funds: Fund II and Fund II Collective, both keeping their targets as tight-lipped as a late-game Curry free throw. The firm’s first fund closed in 2021 and has already made 18 investments (though their website claims 14 — but who’s counting?). Notable investments include startups like the internet security platform Upwind and the work-automation platform Ducky. With Curry advising from the sidelines, Penny Jar joins a growing crew of athletes-turned-investors, including Kevin Durant, Serena Williams, and Giannis Antetokounmpo. Fund II is officially in motion — and here’s hoping it’s more than just a hoop dream.
AN EMP(AI)RE IS BORN: Grammarly just proved that the proof is in the pudding, i.e., dollars spent to acquire another startup. AI-powered proofreading giant Grammarly announced that it’s acquiring Coda, the all-in-one productivity platform. Grammarly will also bring on Coda CEO Shishir Mehrotra as its new CEO as part of the deal. Coda, which combines word processing, spreadsheets, and other apps into one flexible platform, is set to supercharge Grammarly’s vision of AI-powered productivity. With Coda on board, Grammarly will transition from simply offering writing assistance to providing full-fledged workplace integration. While the terms of the deal remain under wraps, this acquisition is a bold move in the productivity software battle, putting Grammarly’s 40 million daily users up against titans like Google and Microsoft. For writers looking for a proofreader that also understands how you work, it's safe to say things just got lit.
FIN-DING ITS WAY IN 2025: According to Crunchbase, all that glitters in fintech isn’t necessarily gold. AI was supposed to be the game-changer for fintech, but truly transformative tools like adaptive financial modeling or real-time fraud prevention are still beyond the reach of smaller players. Meanwhile, the green revolution in fintech has faltered, with carbon-neutral cards and eco-friendly claims failing to convince consumers and leading some companies into accusations of greenwashing. Looking ahead to 2025, Crunchbase predicts a shift toward gamification, blockchain, and real-world financial education for Gen Z, along with cybersecurity taking center stage as a top priority. While fintech startups have made strides this year, many feel the buzzwords are outrunning actual innovation. Now it’s time for all the finance and tech bros to put their keyboards together and turn the buzz into business.
Fire Up the Pre-Seeds🔥
Highlights from this week’s pre-seed raises:
health tech
MoldCo - Breaking the mold.
MoldCo raised $3 million from Behind Genius Ventures, Bleu Capital, Boost VC, Conscience VC, Moth Fund, Night Ventures, SALT, and Starship Ventures. MoldCo is addressing the endemic public health crisis of chronic health issues caused by mold with evidence-based care and
fintech
Billboxx - Going with the cash flow.
Billboxx raised $1.6 million from 54 Collective, Kaleo Ventures, Norrsken Accelerator, P2Vest. Billboxx is building a billing and payments platform for African business to ensure timely payments, addressing the cash flow challenges often faced by African SMEs.
SaaS
Fairly - Take a vacation from your vacation rental.
Fairly raised $10.1 million. Emerging out of stealth mode with its comprehensive vacation rental management platform, Fairly is on a mission to empower vacation rental owners with individualized care and the tools they need to be successful.
CRYPTO AND WEB 3.0
Perena - A stablecoin swim at the neighborhood pool.
Perena raised $3 million led by Borderless Capital. Perena is building a stablecoin infrastructure protocol, establishing an exchange pool of seven different stablecoins for traders to swap assets.
Outro🚪
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