SteelBridge Labs has invested in Acorns founder’s new fintech startup.
Timothy Haluszczak, co-founder and partner of the Strip District-based fintech incubator/investor, confirmed that SteelBridge has made its biggest first investment to date in Ant Transaction Machines, based in Newport Beach, California.
The amount was not disclosed, but typically, SteelBridge’s initial investment is $250,000.
ATM was launched in 2019 by repeat entrepreneurs Walter Cruttenden, founder of micro investing company Acorns, and Mike Gleason, founder of Consumer Brands LLC, to enable consumers to better control and monetize their own data.
ATM’s technology tracks data in detail while giving the consumer instant control over what can and can’t be used in the public domain.
“For us, they bridge fintech and adtech — adtech is what Google and Facebook do,” Haluszczak said. “ATM’s technology collects data from users within the sites. It allows users of the product to earn micro income streams through an app.”
ATM created a platform where the top brands pay users to respond to quick or what it calls “ant sized question" to learn how to improve their products, services and marketing while remaining anonymous on the app. According to its website, brand partners include AT&T, Chewy.com, Gap, Lancome, CostCo and Home Depot. These partners leverage the users for market research, industry insights and consumer trends while the consumers earn money to spend, save or invest in the stock market through their SEC licensed finance tools that reside within the app.
It is SteelBridge’s 10th portfolio company, seven of which are active at present. SteelBridge has graduated one and exited two others. Launched in 2016 by Haluszczak and his brother, James, who is based at its California office, SteelBridge is a micro VC investor and operator.
“Because we’re a lab, we work with these companies every single day,” Timothy Haluszczak said. “We provide hands-on mentorship, leadership building, sales distribution strategy, software and product development and capital raising. ATM has a mature management team and they’re growing fast. The value is we can grow together.”
There’s also opportunity for SteelBridge’s other portfolio companies, mostly based in Pittsburgh or with a physical presence here, to leverage insights and connections.
“Companies where we’ve made early stage investments will come up against this group of investors and operators from Orange County,” he said. “All of our CEOs are given the opportunities to talk through roundtables we hold or at onsite SteelBridge events and we invite them to come to meetings with all of our team. The real power of having our lab is the opportunity for all of this interaction. We’re building an ecosystem of fintech entrepreneurs around the country who can share our network of investors and trusted advisors and they can reach out to each other to solve internal company issues.”
That extends to the technology itself. For example, ATM’s includes a robo money advisor, the kind of product that could potentially be embedded or transitioned into other fintech companies, such as those in SteelBridge’s portfolio, he said.
Additionally, James Haluszczak, SteelBridge co-founder and managing partner, is now an advisor to ATM. Based in Orange County, he travels to Pittsburgh frequently.
“He’s able to add insight into the conversation with Walter and Mike and their senior leadership team,” Timothy Haluszczak said.
Meanwhile, fintech companies are an increasingly hot category for investors. During the second quarter of 2021, U.S. fintech companies attracted almost $7.5 billion in venture capital funding through 194 transactions, according to a report released Friday by S&P Global Market Intelligence. That’s a surge of about 70% from last year.
