Participated · Series C · Jan 2015

TransferWise, launched in 2011, builds cross-border money-transfer services and multi-currency accounts that let customers hold funds in 54 currencies. The company processes about £4 billion in cross-border transactions every month and serves over 8 million customers worldwide. TransferWise grew in popularity due to the simplicity and low cost of its international transfers. It has been profitable and does not require outside capital for growth, having rejected cash-burning hypergrowth strategies. Since 2017 it has offered multi-currency accounts, and it recently received clearance to offer retail investment services in Britain, indicating service expansion plans. The company positioned the recent secondary share sale as a response to investor demand rather than an operating need for funds. TransferWise is a London-headquartered international money-transfer service that enables low-cost cross-border payments. The company supports 49 currencies across 1,600 currency routes and serves 5 million customers, processing £4 billion per month. It estimates customers save £1 billion annually in bank fees. Audited financials for the year ending March 2018 showed 77% revenue growth to £117 million and a net profit of £6.2 million after tax. TransferWise employs more than 1,600 people across 12 global offices and plans to hire 750 more over the next 12 months. Management says capital is not an issue, a public offering remains a long way off, and recent regulatory changes (including the EU outlawing exchange-rate mark-ups) are favorable for the business. TransferWise provides low-cost international money transfers for consumers and SMEs and offers multi-currency Borderless accounts. Its core products include direct consumer and business transfer services, third-party integrations, and the Borderless account aimed at businesses, sole traders and freelancers. The company serves over two million customers, supports 750 currency routes, handles more than £1 billion in transfers per month and has roughly a 10% U.K. market share. TransferWise has been profitable since early 2017. Management plans continued global expansion with a focus on the APAC region, further development of the Borderless account, and a consumer version with a debit card planned for the U.K. and Europe in early 2018. It is also partnering with banks such as N26 (and soon Starling) and pursuing markets including India and Brazil. TransferWise provides online money-transfer services and has built a strong brand around its product. The company is London-headquartered and employs over 600 people across the U.K., Europe and the U.S., including roughly 100 product staff. TransferWise is currently loss-making and reinvests all revenue into growth. Management says the business is closer to obtaining its own U.S. banking licence and prefers to control its own banking arrangements. The company noted that a U.S. money-transfer licence is required for each state, and that the fundraising climate has cooled, giving it a range of equity and debt financing options. TransferWise built a P2P money-transfer platform (founded in 2011 by ex-Skype and PayPal engineers) that matches transfers between users to avoid traditional bank fees and use mid-market rates. It targets expats, freelancers, sole traders, retirees living abroad and small businesses, with an average transaction around £1,500. The company reports about £3 billion ($4.5 billion) transferred through its platform and customer cost savings of more than £135 million versus traditional bank transfers. TransferWise currently operates 292 currency routes and plans to add 300 more in the next year. It is opening a U.S. office next month and will launch outposts in Germany and Austria in the coming months as part of a global expansion. The new funding is intended to ramp up its P2P transfer business and help bolster the company against competition from banks, PayPal and other startups.

Participated · Equity · Sep 2011

Pixelligent develops and manufactures nano-engineered materials—notably via its PixClearProcess—for augmented reality displays, sensors and lubricant applications. The PixClearProcess synthesizes materials at the nano level rather than breaking down larger materials. The company manufactures all of its materials in Baltimore and has 25 tons of production capacity. Pixelligent owns nearly 90 patents and “dozens” of trade secrets underpinning its products. CEO Craig Bandes, who took control of the company in 2009 as chief restructuring officer, said the funding will help support customers as the company brings numerous mass-production applications to market in 2023 and beyond. The company also recently received a $1.9 million U.S. Department of Energy grant; prior to this financing it had raised about $100 million to reach its current market position. Pixelligent synthetically replicates a broad set of metal-oxide materials and manufactures PixClear nanoparticles intended for integration into common manufacturing processes via its PixClearProcess. The company is commercializing PixClear as a nanoparticle solution and lubricant additive engineered to withstand intense operating conditions in harsh environments, aiming to improve performance, energy efficiency, reduce wear, and extend component lifetime. Target applications named in the article include wind-turbine gearboxes, EV wheel bearings, marine components, steel and aluminum rolling plants, and space-related uses. Pixelligent’s platform supports multiple application formats (ink jet, nanoimprint, spin coating, dispensing, photolithography) and its product family is cited for Extended Reality devices, OLED/MicroLED displays, optics, sensors, and solid-state lighting in addition to industrial uses. Research partners on the commercialization effort include the Carpick Research Group at the University of Pennsylvania and Argonne National Labs; commercial testing partners include ExxonMobil, Infineum, and Winergy‑Flender. The company has received multiple U.S. government awards—DOE and DoD programs have provided nearly $6M to date—and the current DOE award is intended to accelerate commercial implementation of their coating and lubricant technology. Pixelligent is a Baltimore, MD-based high-index advanced materials manufacturer that leverages nanomaterials to develop dispersion technology for next-generation OLED and HD displays, OLED and LED lighting, and optical coatings and films. Its flagship PixClear® zirconia dispersions deliver high light extraction, near-perfect transmission, increased mechanical strength, and improvements in overall operating efficiencies. The PixClear® nanocomposites can be incorporated into solvents, polymers/monomers, and the manufacturing processes most commonly used in electronics manufacturing. Led by President & CEO Craig Bandes, the company raised $7.6M in funding to accelerate commercialization. Pixelligent intends to use the proceeds to further drive product commercialization and accelerate global customer adoption across its target markets. Pixelligent develops PixClear® zirconia nanocomposite dispersions designed to improve light extraction, transmission, mechanical strength, and operating efficiencies in OLED/LED lighting, HD displays, optical coatings, and industrial applications. Its dispersions can be incorporated into common solvents, polymers/monomers, and manufacturing processes used in electronics production. The company is leveraging grant funding to accelerate development of applications across lighting and industrial lubricants. Recent awards will support extending OLED light-extraction materials toward next-generation flexible OLED lighting and developing PixClear-enabled gear oils to improve gearbox and drivetrain lifetime and energy efficiency. Pixelligent collaborates with the University of Pennsylvania and Argonne National Laboratory on lubricant development. The company has grown through grant awards and private funding and was recognized by Frost & Sullivan as the 2017 Manufacturer of the Year for SMBs under $1B in revenues. Pixelligent develops and manufactures high-index advanced materials, marketed as PixClear®, for solid-state lighting, display and optical coatings and films. Its nanotechnology platform includes proprietary nanocrystal synthesis, capping technology, high-volume manufacturing and application engineering that supports ink jet, slot die, UV curing, spray coating and other manufacturing processes. The company intends to use the new $10.4M in funding to complete installation of additional manufacturing capacity, open new offices in Asia, and continue to drive innovation in lighting, display and optical applications. The $10.4M round was led by The Abell Foundation, The Bunting Family Office and David Testa and brings total equity raised to over $36.0M. Pixelligent is led by President & CEO Craig Bandes and is based in Baltimore, MD.