MicroMoney has another influential fund in its corner. Alex Mashinsky’s Governing Dynamics, a U.S.-Israeli venture fund investing in Israeli biotech startups, AI, cybersecurity, and energy scale-ups in the U.S., has taken MicroMoney in as a strategic partner, instrumental to increasing the impact and the heft of its portfolio companies’ operations.
Mr. Mashinsky’s track record in finding perfect matches for tech opportunities is impressive. Just recently, he was the leader of the group that won NYC’s MTA (subway operator) open bid to provide Wi-Fi underground. The project, called Transit Wireless, has a 25-year franchise and will add Wi-Fi to 300 stations.
Mr. Mashinsky’s biggest project to date was launching and developing Arbinet, one of the largest telco exchanges in the world. With 2,500 phone companies as members and 20 billion transactions a year, the company merged with Primus Communications in 2011, generating a whopping $1.5 billion in annual revenues, only to sell its assets in 2012 and distribute $800 million to shareholders.
Mr. Mashinsky sees MicroMoney as a strategic player, fitting to join Governing Dynamics’ universe. The first portfolio partnership Mr. Mashinsky engineered is with decentralized credit lending platform Celsius Network.
MicroMoney and Celsius Network Announce Partnership in Lending Services
This partnership will allow to drastically expand the reach of cryptocurrency loans to customers in many corners of the world. The two companies have found great synergy – both firms’ platforms use the global Ethereum blockchain technology and they will also endeavor to develop and standardize the protocols on top of which all monetary transactions are processed on the blockchain open-ledger system.
MicroMoney, which is normally dealing with smaller loans in Asia and other regions not exceeding $200-300 dollars, is planning on referring and rerouting its larger clients to Celsius, primarily a B2B platform. Dzyatkovsky estimates that up to 47% of the company’s leads are small business owners with loan application amounts ranging from 400 to 1,000 dollars. The pass-through mechanism to Celsius would allow MicroMoney to focus more on individual unbanked people who have never had a loan, the first-timers, thus fulfilling its mission of helping to increase the level of financial inclusion in the developing world.
“We are planning to build something together with Celsius Network now that has never been attempted before – a worldwide blockchain lending system that will help millions of people around the world with their first loans. I am truly delighted and proud,” said Anton Dzyatkovsky, MicroMoney co-founder.
The NYC-based Celsius Network similarly manages and extends consumer loans through a peer-to-peer network. Like MicroMoney, Celsius hopes to serve the underbanked population with a focus on young adults who have limited or no credit histories. Celsius Network is planning to launch its innovative product next year, after a token distribution campaign. Celsius recently published its open-lending and credit protocols, which are now available for adoption by all other lending organizations.
The MicroMoney.io app is already operating and currently extends credit to over 100,000 people in five Asian countries: Cambodia, Myanmar, Indonesia, Sri Lanka and Thailand. MicroMoney is also running its token distribution campaign and looking to raise between $15-$30 million, which will help add over 2 million new customers to its user base. The campaign has een able to raise close to $8 million to date.
The MicroMoney executive team is led by Dzyatkovsky – a business leader with more than 13 years of experience in fintech, retail sales and marketing and e-commerce. Prior to starting MicroMoney, Anton served as Director of Sales at FinKarta startup, which under his supervision grew to be a successful business. Anton is responsible for the creation of a database for FinKarta that combined Big Data from collection agencies. He also worked for 4finance company in Singapore where he developed new branches in new markets. His latest project MicroMoney has a diverse team of experts in various fields and a top-notch advisory board with representatives from all target markets.
Founded in 2015, MicroMoney has embarked on a mission to provide access to the unbanked audience for banks, trade, and financial organizations. It is a fast-growing company valued at $1.85 million (before the token distribution campaign), with over 85 employees in six international locations.
MicroMoney makes lending decisions using proprietary A.I. algorithms, machine learning, and a Big Data based mobile scoring system. Its lending process doesn’t require any collateral or paper-based documentation. The company collects customers’ opt-in mobile phone data to establish potential borrowers’ credit score. After that, it uses the score to generate credit profiles, stored with the MicroMoney Blockchain Credit Bureau, which in turn shares this data with financial institutions worldwide.
Celsius Network is helmed by serial entrepreneur, Alex Mashinsky, founder of Transit Wireless and Arbinet – two of New York’s most exciting startups in the past decade. Celsius Network has engineered a new global platform to enable peer-to-peer credit lending. Using an ethereum-based smart contract protocol, Celsius is providing an opportunity for everyone to participate in an easy-to-access credit lending ecosystem. Individuals within the network can apply to receive instant credit from other trustworthy network members depending on their transaction history. Celsius will also enable borrowers to leverage guarantors all over the world who are willing to join their digital wallets to expand a borrower’s credit limit and lower their interest payments further.