Fintech investing and rising fintech companies to watch

Rising Fintech
Companies to
Watch
Fintech Investing
A collection of articles from Bitcoin Investing News to help
new investors in this market By Morag McGreevey

Fintech Investing Rising Fintech Companies to Watch
© 2017 Fintech Investing News 1
Table of Contents
Fintech Companies to Watch in 2017......................................................................................................2
Fintech Outlook for 2017: Continued Acceptance and Validation.......................................................5
Top Blockchain Investing Trends for 2017..............................................................................................8
3 Technology Stocks You Should Know About....................................................................................10
Technology Trends 2016 .........................................................................................................................12
Top Tech Stocks of 2016.........................................................................................................................15

Fintech Companies to Watch in 2017
Investors are sure to be seeing more of these
companies in the future.
We wrote previously about fintech in 2017,
regarding wider trends, and also reviewed
2016. 2016 saw the beginning of building
acceptance and trust between fintechs and
incumbents, so 2017 should see a more
stable and symbiotic relationship between
the two. In this article we are going to take
a look at particular companies and
alternative ways to invest. INN spoke to
various companies’ CEOs and experts, to
get insight on their own activity, and
additionally, their thoughts on the general direction investors should be looking
to find the action.
2016
If two words described fintech in 2016, it would be blockchain and Brexit. Both share
similarities; just as blockchain broke free of simply supporting bitcoin, Britain have (so
far) proved they can go it alone in the fintech space, without the EU.
2017
2017 should be interesting as fintechs and incumbents spark off one another to create
new ideas. Collaboration is a keyword for all in 2017. There will, however, be
challenges. Funding startups is a gamble so emerging players will have to establish
themselves somehow. Investors should watch for those who succeed in making a name
for themselves. Large institutions that partner with fintechs, and vice versa, will be
stronger.
DigitalX
INN talked to Leigh Travers of DigitalX (ASX:DCC), a company providing blockchain
based software solutions. He predicts more companies will file patents on the work they
are doing with blockchain technologies in order to protect their ideas. The company has
filed patents for AirID, proprietary technology that creates a digital ID on a blockchain.
Digital identity transactions with blockchain solutions allow users to build up a credit

score, breaking new ground in terms of providing financial privacy with blockchain.
Travers told INN that, “we’ve honed in on a specific value and use for blockchains which
is the best way of hosting shared databases in a way that is secure and tamper-proof
for the purposes of automatic processes and consumers.” In December, DigitalX
announced a partnership with Paykii, a leading provider for Latin American Bill-Pay
coverage. This is a prime example of a mutually beneficial partnership.
Analysts make their selections
Haywood Securities’ technology analyst, Pardeep S. Sangha, follows fintech companies
on the TSX Capped Information Technology (InfoTech) Index (TSX:XIT), which is up 3.5
percent year-to-date. In a research note, he wrote that DH Corporation (TSX:DH), a
software company that provides financial service solutions to banks and corporations, is
one of the fund’s top holdings and Sangha projects increased revenues for this
company over the next few years. In agreement is Raymond James’ analysis; DH
Corporation are due an estimated 10.2 percent revenue growth in 2017.
PI Financial’s Technology Analyst, David Kwan, chose TIO Networks (TSXV:TNC) as
the Q3 and Q4 Top Picks, which bodes well for continued success. TIO process
financial transactions via the cloud. We reported on them in November and they have
key catalysts ahead, including an acquisition announcement, a potential graduation to
the TSX and strong Q4 results. PI Financial forecast revenues of $117.5 million in
FY17.
Other investment opportunities
It isn’t just companies investors should look out for. If the Winklevoss brothers manage
to get their unprecedented bitcoin ETF approved, investors could have easy access and
exposure to the cryptocurrency and it would allow analysts to really take the
temperature of the market.
Jason Granger and Charlie Shrem of Intellisys, a capital management firm, are
venturing into the first private equity investment offered as a digital ledger security – a
platform powered by blockchain. The aim is to provide transparent investment portfolios,
“becoming a showcase for blockchain projects looking for recognition from larger
investors.” The project launches in the new year. In their most recent news, they have
extended “a gesture of transparency to potential investors”, by announcing an initial
token offering memorandum (ITOM), planned for January 15, 2017 and running for two
months. In an interview with INN, Shrem said “right now we are working on purchasing
the first two companies” – so watch this space.
Kevin Hobbs, CEO of blockchain firm Vanbex Group, highlighted the Equibit blockchain
as something to watch in 2017. Equibit looks to overhaul the Over-The-Counter (OTC)
markets system with a decentralized platform, encryption that outstrips current financial
standards and provides shareholder data and dividend payouts faster. In a pre-sale

push, investors can reserve equibit units through a crowdsale, opening at the end
of January 2017.
Investor takeaway
The test for blockchain in 2017 will be whether its applications can go from being used
passively to proactively with consumer demand and investor interest driving progression
forward. Fintech is a fast growing area and investors would do well to keep informed as
developments move apace and continue to transform the world around us.

Fintech Outlook for 2017: Continued
Acceptance and Validation
Investors would do well to consider the fintech
ecosystem that is growing exponentially in a bid to
reach maturity. The challenge for incumbents will be
to embrace rather than reject these changes.
In 2016, financial technologies built
acceptance and trust with banks,
consumers and financial institutions.
When we spoke to industry
participants, their predictions
suggest this will continue in 2017.
2016 in review
The financial technology market in 2016
was dominated by the rise of blockchain
— from finance to pharma, we reported
on top blockchain stocks in emerging areas, aside from simply supporting bitcoin.
Interestingly, bitcoin has outperformed most major commodities and currencies year-to-
date.
State of Blockchain Q3 2016 from CoinDesk
In June, Brexit gave financial markets a fright, but fintech in London seems to have
survived the scare, to remain the tech capital of Europe. This is thanks in part to the
direction of Bank of England governor Mark Carney, who has welcomed fintech startups
to help write the next chapter for central banking.
October also saw companies outside financial services begin looking at and leveraging
fintech solutions. American financial services company Capital One (NYSE:COF)
partnered with startup Gem on their blockchain project for medical insurance claims.

Collaboration is the buzzword for 2017
In an interview by Deloitte Ireland, Keith Fingleton of IDA Ireland emphasized 2017 as
the year of collaboration in his fintech forecast. There has been a startup wave and now
the priority is for these to work together with, instead of against, traditional companies.
According to an Accenture fintech report, this is the ‘Fourth Industrial Revolution’, the
age of collaborative, as opposed to competitive, ventures.
The World FinTech Report 2017 states that 60 percent of companies applied innovative
strategies through partnerships with fintech firms in 2016, a greater proportion than
those acquiring them or creating their own solutions team. Further, 76.7 percent of
executives see fintechs as an opportunity for partnership, rather than a threat, a
potential acquisition or irrelevant. Doubts linger as to whether this is a temporary victory
for fintech companies, who seek to cement their elevated position in the markets and
eyes of executives.
Challenges in fintech ahead
While we wrote about R3CEV in October, Santander and Goldman Sachs, who were
there from the start, have now backed out of the consortium, a group of 70 financial

institutions at work on blockchain tech. This is bad news for the partnership that
attempted to establish a network effect and a troubling sign for the banking crowd. R3
have partnered with Microsoft (NASDAQ:MSFT) to work on blockchain Proofs-of-
Concepts (PoCs).
According to CoinDesk, funding is going to be a challenge for the fintech market. In
a takeaway from their Q3 2016 State of Blockchain report, “data shows investors are
becoming less certain about industry startups, as evidenced by a decline in smaller and
earlier-stage investments.” Instead, more established companies with track records are
winning the funding battle.
Guy Halford-Thompson, Chief Executive Officer of Blockchain Tech Ltd. (TSXV:BTL)
thinks that exciting times lie ahead as blockchain emerges from practice mode. In
his words, “2017 is really the year where blockchain moves out of pilot and into
production.”
This can, however, only be achieved through the marriage of bigger and smaller
companies pooling resources and talent. Indeed, Chris Skinner, author of blog The
Finanser and fintech books, claims investing in unicorns is riskier as they could implode.
The message remains: startups and big businesses are mutually dependent upon one
another to succeed and exchange expertise.
Investor takeaway
Financial technologies have built trust and validation with banks, consumers and
financial institutions in 2016. This is set to continue on to 2017 as financial products and
services look to technology to grow, safely guard and succeed.
Many fintech companies are private startups but are worth keeping tabs on as future
prospects. Lots of private companies are building solutions, so watch out for M&A
activity as big companies move in, and some have already gone public. Mainly keep an
eye on a hybrid of these solutions as executives acquire, build, merge and particularly,
partner up with fintechs. Investors must be patient and prepared to play the long game.

Top Blockchain Investing Trends for
2017
In a follow-up interview with INN, Blockchain Tech Ltd.
CEO Guy Halford-Thompson shares the top
blockchain investing trends for 2017.
Guy Halford-Thompson, Chief Executive Officer
of Blockchain Tech Ltd. (TSXV:BTL) shared his
thoughts on the blockchain market and
speculated about the direction the market will
take in 2017.
Exciting times lie ahead as blockchain emerges
from practice mode; “2017 is really the year where
blockchain moves out of pilot and into production.”
A look back at 2016
Last year the remittances market and digital asset management topped his list of
industries that would benefit from blockchain technology. On a broader scale, he saw
widespread “acceptance and adoption”, so were these the two most salient descriptions
of the market in 2016?
Halford-Thompson acknowledged that previously “You would say blockchain and
people would hear bitcoin.” This year, however, blockchain started to emerge from the
shadow of bitcoin as individuals and companies began to see standalone potential.
Banks and financial institutions adopted blockchain and BTL were in on the action. They
are working with Visa Europe on settlements between banks.
Top blockchain investing trends of 2017
According to Halford-Thompson finance is only scratching the surface of the possible
applications of blockchain; “we’ve still got a long way to go in FinTech”. He recognizes
that “transactional type industries are designed to see the impact and potential cost
savings of blockchain”.
He is looking to the energy sector, applying their Interbit platform to the energy trading
process.

He is also looking to areas where trust is vital. Firstly, the healthcare space, where
privacy, integrity and “control over access to data is paramount and critically
important”. Another “industry is the online gaming or gambling…you can have a casino
game that operates on a blockchain.”
Fantasy 6 Sports reaps blockchain benefits
The fantasy sports industry can be revolutionized with the technology. BTL is partnering
with Fantasy 6 on a “platform called SecurePlay, which is designed to integrate pretty
seamlessly with existing operators”. Transparency is the buzzword here; “the fantasy
sports industry has been marred with a number of scandals where essentially players’
trust has been betrayed and sites have been operating essentially behind the backs of
players and not providing trustworthy and accurate information and from an operator’s
standpoint its very easy to hide that”. So far luck has been the only factor in sourcing
the scandal; now technology can eliminate corruption.
Blockchain’s ally
Halford-Thompson says their most important milestone was announcing the pilot with
Visa and six of their member banks. He credits their support in the blockchain space.
Indeed Visa has announced another project they’ve been working on in the US with a
company called Chain, piloting as a product this year, called B2B Connect.
Blockchain’s greatest challenge
Education is the biggest challenge facing blockchain and there is a steep learning curve
ahead. Implications for companies and industries are misunderstood but Halford-
Thompson knows this is to be expected; “the early adopters are always going to be the
ones that understand the technology faster”.

3 Technology Stocks You Should Know
About
Three Stocks to Note in Fintech and Medical Markets
The NASDAQ 100 Technology Sector
(INDEXNASDAQ:NDXT) has had a solid year
to date (YTD), up 19.31 percent while the
NASDAQ HealthCare Index
(NASDAQINDEX:IXHC) has had a rockier
year, down 18.21 percent YTD. The latter is
perhaps not such a good short-term
prospect but long-term could swing back.
An overview of the fintech ecosystem from BI
Intelligence examines the evolving relationship
between incumbents and fintechs. “Fintechs are no longer viewed exclusively as a
threat, nor can they be ignored. They are increasingly viewed as partners, but that
narrative alone is too simple – in reality, a more nuanced connection is taking hold.”
These stocks are examples of modern mindsets taking advantage of practical
applications of new technologies.
In an interview with Money Talks, PI Financial Managing Director for Technology Blake
Corbet put a spotlight on these 3 Vancouver-based tech stocks:
TIO Networks (TSXV:TNC) delivers cloud based services so that customers can pay
bills with immediate effect, through a variety of payment channels. They position
themselves particularly for the LMI (low to moderate income) and underbanked markets.
PI Financial analysts have given TIO a BUY rating with a target price of $3.35 so now is
a good time to invest. They have completed phase one of integrating with Softgate
Systems which has prompted a new corporate structure for TIO, now split into three
‘business units’ in order to focus on different strategic sections. These are Biller and
Agent Solutions (processes payments), Telecom Solutions (service provider),
Consumer Financial Solutions (B2C). This is one of many acquisitions for TIO.
Nobilis Health Corp (TSX:NHC) is a national healthcare company that analysts
recommend investors BUY with a target price of $7.75, which is up from January’s
figure of $7.00. This comes with an ABOVE AVERAGE risk but despite potential
concerns there is always going to be demand for back pain clinics and small hospitals
that provide procedures for patients nationwide. Nobilis were planning an ambitious
acquisition program for 2017 but this has been scaled down. They did acquire Arizona
Vein and Vascular for $22 million. Their third quarter 2016 financial results recorded a
net loss of $2.8 million. Nobilis are unique for their direct marketing methods of social

media, television and web marketing. This is another company with a Canadian listing
and US revenues, operating in Texas and Arizona.
Diversified Royalty Corp. (TSX:DIV) approach private companies and buy royalties. A
good example of this is the largest royalty the company holds, with Mr. Lube. It provides
a predictable stream of cash for DIV. Corbet claims the management team are ‘very
sophisticated’. They have been rated as a BUY with an unchanged target of $3.75. The
YTD highs and lows haven’t fluctuated too much with the lowest hitting $1.96 and the
highest at $2.79. They have recently announced they are selling restaurants business
Franworks, who own Original Joe’s but were on a downwards trend. This shouldn’t
alarm investors; DIV plans to wrap the sale by the end of the year and replace
Franworks with a royalty of similar size.

Technology Trends 2016
The major technology industry trends from 2016 are
reviewed below, for the benefit of the seasoned
investor.
Cleantech, cloud, cybersecurity, fintech,
mobile and 3D printing are all industries
employing creative solutions to the
difficulties they face. For some industries
the path is smoother than others. When it
comes to consumers, those who grew up
with a mobile phone in their hand and
wouldn’t recognize a world without the
internet, are now in their spending years.
The demand for technology products is
only going to rise.
Here are the key takeaways, according to each industry.
Cleantech
We wrote about cleantech investing facts which highlighted one trend in particular; solar
power was big news in 2016. Consumers became more aware of their energy
consumption and switched to renewable sources. Manufacturers also produced more
aesthetically pleasing options. According to the US Cleantech PwC report, “M&A activity
increased this quarter,” with transactions numbering 17 and totalling $1.56 billion. Solar
energy contributed $2 million in corporate M&A and around a quarter of VC deals were
in solar. The largest disclosed transaction was NextEra Energy’s (NYSE:NEE) $218
million acquisition of a stake in Desert Sunlight’s solar project.
Cloud
We wrote on ten top stocks in cloud security companies, that outlined the rise of the
NASDAQ CTA Cybersecurity Index (INDEXNASDAQ:NQCYBR), which has performed
positively this year. Year-to-date it has gained 11.94 percent with a year high in
November of $953.33 per share. Gartner provides an overview of three common factors
in cloud computing stocks: governance, environments and privacy. Successful
companies have navigated firstly, cloud migration and secondly choosing the right kind
of cloud, whether private, public or a hybrid. As well as this they have stayed secure to
ensure their information is kept personal and protected.

Cybersecurity
The Internet Security Threat Report by Symantec states that email malware is a
recurring, traditional trend. Malware is short for malicious software and is most
commonly contagious when someone clicks on an email attachment. Emails are a
major channel into our systems. Hillary Clinton’s presidency bid was blindsided by a
hack. As a species we are susceptible to attack campaigns as we have been socially
conditioned to open attachments with recognizable file extensions. The same
companies have remained dominant in this landscape. Symantec (NASDAQ:SYMC) are
up 16.9 percent year-to-date. Their Messaging Gateway blocks over 99 percent of
spam.
Fintech
In an unexpected development, Initial Coin Offerings (ICOs), similar to IPOs but for
digital currencies, have seen more than $150 million raised in a single crowdfunding
initiative. Kevin Hobbs of the Vanbex Group says, “ICOs are certainly being seen as a
more viable fundraising strategy than ever before.” Participating in a crowdfund has
become the best way to invest in the blockchain sphere. Conventional angel investors
and venture capitalists are beginning to take note. However this could go one of two
ways; either an ICO might be clamped down on, like Kickstarter campaigns, or could
flourish under US regulator SEC.
Mobile
Mobile applications are being utilized most effectively in the money remittance space,
especially to and from developing countries. With DigitalX’s (ASX:DCC) Latin American
partner Telefonica (BME:TEF), they have created a remittances network from the US
and Canada to countries from Argentina through to Uruguay, with blockchain-based
money transfer app AirPocket. This taps into both the large Latin
American migrant workforce looking to send money home and the 65 percent
of Latin Americans who say they are keen to make more transactions on their mobiles,
according to an eMarketer survey. This was the highest percentage of all regions
surveyed.
3D Printing
As reported in October, 3D printing has applications in the healthcare sector. The year
that Citi analysts cited concerns about overstated market value, medical devices
provided a safety net for 3D printing companies, guaranteeing audiences for their
products. Market leader 3D Systems (NYSE:DDD) 3D printed anatomical models for
students of medicine and surgical planning. Both Graphene 3D Lab’s Elena Polyakova
and Nano Dimension’s Simon Fried recommend Carbon3D, whose CLIP technology
has allowed for highly customizable medical devices, made in mere minutes.

In January medical giant Johnson & Johnson (NYSE:JNJ) announced a partnership with
Carbon3D to produce custom surgical devices.

Top Tech Stocks of 2016
A look at the top gainers on the NASDAQ stock
exchange.
It’s certainly shaped up to be an
interesting year for tech stocks. Year-
to-date, we can see some clear
winners have emerged. The NASDAQ
Technology Sector
(INDEXNASDAQ:NDXT) had a good
year, up 22.79 percent, trading at
2,839.49 points at the time of writing
this article.
Here’s a breakdown of the top computer
processing and software companies on
the NASDAQ with market capitalizations greater than $50 million but less than $500
million. This criteria narrows down the list somewhat. Out of 45 listees most have
recorded gains with 17 seeing losses. Read on to learn more about these top gainers:
1. Datalink (NASDAQ:DTLK)
2. Tucows (NASDAQ:TCX)
3. Iteris (NASDAQ:ITI)
4. Limelight Networks (NASDAQ:LLNW)
5. QAD (NASDAQ:QADA)
Datalink
Current price: $11.20; year-to-date gain: 64.71 percent
Datalink transforms data centers for business operations to ensure they run smoothly,
quickly and effectively. They formulate cloud disaster recovery scenarios in the event of
a cyber attack. They have recently merged with Insight Enterprises; the acquisition is
anticipated to go ahead in the first quarter of 2017.
Reuters Estimates recommend a hold rating. Revenues for the quarter ended
September 30, 2016 decreased 7 percent to $184.0 million, from $198.0 million the
same quarter the previous year.

Tucows
Based in Toronto, Tucows is an internet services company who provide network access
and domain names. One service is Ting, which delivers mobile phone plans that are
simple enough to understand and are transparent. They operate on over 200,000
phones.
They reported strong financial results from their third quarter, seeing increased net
income, revenue and earnings per share. It has been downgraded from a buy to a hold
by analysts but this could change back due to such positive recent news.
Iteris
Iteris is an American company that applies big data findings to solve issues in
transportation and agriculture. For example, with PedTrax, they measure pedestrian
traffic on roads, identifying those on foot and on bikes, in order to perfect signal timings.
This will make commutes and roads safer.
Reuters recommends a strong buy. In November they announced their financial results
for the fiscal second quarter of 2017; revenues increased 17 percent to a record $24.1
million over $20.6 million the year before, same quarter.
Limelight Networks
Limelight Networks deliver digital content across gaming and media industries. Clients
such as Lionsgate and L’Oréal can engage global online audiences. In their annual
survey The State of the User Experience, they report that their millennial consumers
mainly go online for video and social media.
Reuters recommends a buy. The gross profit for the third quarter of 2016 was $16.24
million, up from the third quarter of 2015.
QAD
QAD are based in California. They provide software solutions for manufacturing
companies worldwide, over a cross section of industries. They help with business
optimization, cloud migration and new website implementation.

Reuters analysts recommend a strong buy. They recently reported their fiscal 2017 third
quarter financial results, seeing $36.5 million gross profit, marginally down from the year
before.
Investors should pay attention to the above in 2017 as one day these could become a
worthy investment.
USA Technologies provides technology-enabled solutions and value-added services
that facilitate electronic payment transactions within the unattended point of sale
market. More specifically, the company is a provider in the small ticket, beverage and
food vending industry, the amusement industry, commercial laundry, kiosk and
other markets.
Year-to-date, the company has seen a 31.17 percent spike in sale price. In June, the
company had its annual shareholder meeting. Meanwhile, Q4 2016 earnings results are
expected to be released on September 8.

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