By Lina Irawan 
From the rudimentary leather pouches that held the first coins in antiquity to the sophisticated folding pocketbooks that accompanied the rise of paper currency during the Renaissance, the human relationship with the "wallet" has always mirrored the prevailing economic and technological landscape. Today, in an era dominated by smartphones, this ubiquitous personal accessory is undergoing its most profound transformation yet, evolving from a mere repository of physical items into a dynamic digital surface poised to redefine how we interact with commerce, services, and even our own identities.
This monumental shift is at the core of Badge’s mission, a digital wallet development startup co-founded by Eric Senn, who previously made waves in mobile commerce with Storr. Senn envisions a future where the wallet is no longer a passive feature tucked within an operating system, but rather a central, interactive layer of the iOS and Android ecosystems. "The future of the wallet is very different than it is today, as it’s becoming a much more dynamic surface," Senn articulates, pointing to Apple’s innovative ticket interface as a prime example. What was once a simple digital stub has morphed into a comprehensive portal offering everything from merchandise purchases and food ordering to interactive venue maps. This integration of multiple functionalities transforms a static credential into a personalized, contextual hub for engagement, representing a glimpse into the dynamic future Badge is building.
This trajectory has not gone unnoticed by the investment community. Fortune has exclusively revealed that Badge has successfully secured $17.1 million in funding, underscoring significant investor confidence in Senn’s vision and the burgeoning digital wallet market. This substantial capital injection includes a $13.8 million Series A round, spearheaded by TTV Capital, a venture firm renowned for its deep expertise in fintech. Prominent participants in this round include Stripe, the global payments infrastructure giant; Synchrony Ventures, the venture arm of Synchrony, a leading consumer financial services company; and Infinity Ventures. The company, established in 2023, also previously raised an unannounced $3.3 million seed round with QED Investors and Infinity Ventures. The participation of such strategic investors – from payments leaders like Stripe to financial services innovators like Synchrony – signals a broad industry recognition of the digital wallet’s transformative potential beyond just transactions. Their backing suggests a belief that Badge is uniquely positioned to empower businesses to harness this next-generation digital interface.
Senn emphasizes the strategic importance of this new digital real estate, likening it to established digital channels. "When you think about surfaces, we have websites and apps, and this is a new surface that brands have to play in," he states. He draws a compelling parallel: "More people use Apple and Google Wallet today than TikTok. And brands and businesses would never ignore TikTok or Instagram—it’s a place where they need a strategy." This comparison highlights a critical advantage: digital wallets boast "guaranteed reach" as they are pre-installed on virtually every smartphone. This inherent ubiquity offers a compelling alternative to the growing challenge of "app fatigue," a phenomenon where consumers are increasingly reluctant to download new applications. Senn notes, "It’s a lighter-touch way to engage and retain a customer versus asking them to download an app, which we know increasingly consumers don’t want to do." For businesses grappling with user acquisition and retention in a crowded app market, the digital wallet presents a powerful, frictionless channel for engagement.
However, the rapid expansion of mobile wallet commerce also presents a significant challenge: maintaining channel integrity. Senn acknowledges that the biggest hurdle isn’t growth itself, but "not wrecking the channel." The risk of digital wallets becoming inundated with spam, mirroring the fate of email inboxes or SMS messages, is a tangible concern. Badge’s strategy to counteract this potential degradation focuses on revenue-driving functions that genuinely add value and foster user loyalty. This includes robust loyalty programs, versatile gift cards, seamless membership cards, and dynamic ticketing solutions. The goal is to ensure that interactions within the digital wallet remain contextual, relevant, and beneficial to the user, thereby preventing the kind of intrusive messaging that could erode trust and lead to widespread disengagement. While the specter of digital wallet spam may be an "inevitable" part of the digital world, as the original article’s author Allie Garfinkle muses, Badge’s proactive approach to building guardrails is crucial for the long-term viability and integrity of this emerging platform.
Looking ahead, Senn envisions a radical departure from current norms. "We’re kind of entering this new world where maybe our kids won’t even have physical wallets," he muses. This bold prediction underscores the profound shift occurring, where the tactile experience of currency and cards gives way to entirely digital interactions. This future represents a "really big opportunity for businesses to play in this new digital space," allowing them to cultivate a direct, dynamic "relationship with someone’s wallet versus a physical card." This goes beyond mere transactions, enabling personalized offers, contextual reminders, and integrated services that adapt to a user’s real-time needs and preferences. The potential applications are vast and extend beyond commerce to areas like digital identity, health records, and secure access, marking the digital wallet as a foundational layer for future digital interactions. "We’re just scratching the surface of where it will be," Senn concludes, hinting at an expansive future for this evolving technology.
Broader Horizons: Venture Capital Fuels Innovation Across Sectors
Badge’s significant funding round is part of a larger trend of robust venture capital activity, with investors pouring substantial capital into innovative companies across diverse sectors. This investment surge highlights a collective belief in the power of technology to reshape industries and create new markets.
In the financial technology space, Vestwell, a New York City-based savings platform, secured an impressive $385 million in Series E funding. Led by Blue Owl Capital and Sixth Street Growth, with participation from Neuberger Berman, SLW, Morgan Stanley, and others, this funding underscores the growing demand for modern, accessible savings and retirement solutions. The investment reflects confidence in Vestwell’s ability to digitize and streamline a critical aspect of personal finance, aligning with the broader theme of digital transformation seen in Badge’s mission.
The biotechnology sector also saw considerable investment, with Korsana Biosciences, a Waltham, Mass.-based developer of therapeutics for neurodegenerative diseases, raising $175 million across seed and Series A rounds. Backed by Fairmount, Venrock Healthcare Capital Partners, Wellington Management, TCGX, and others, Korsana’s funding signals continued innovation in addressing complex health challenges through cutting-edge research and development.
Clean energy and infrastructure attracted significant capital as well, with Heron Power, a Scotts Valley, Calif.-based energy infrastructure company, raising $140 million in Series B funding. This round, led by Andreessen Horowitz and Breakthrough Energy Ventures, and joined by existing investors Capricorn Investment Group, Energy Impact Partners, Valor Atreides AI Fund, and Gigascale Capital, demonstrates a strong commitment to sustainable energy solutions and the infrastructure required to support them.
Digital security remains a high priority, evident in Venice, a New York City-based account security platform, raising $33 million. Led by IVP with participation from Index Ventures, Vine Ventures, Holly Ventures, and angel investors, Venice’s funding addresses the critical need for enhanced protection in an increasingly digital world. Similarly, Selector, a Santa Clara, Calif.-based AI-powered network observability platform, secured $32 million in funding led by AVP, with Ansa Capital, Two Bear Capital, Sinewave Ventures, and Singtel Innov8 also participating. This investment highlights the growing reliance on AI to manage and secure complex digital infrastructures.
Workforce integration technology is another area experiencing growth, with Kombo, a New York City and Berlin, Germany-based developer, raising $25 million in Series A funding led by Volition Capital. This reflects the ongoing drive to optimize and connect various systems within modern workplaces.
In the real estate and home services sector, Zero Homes, a Denver, Colo.-based platform for digital home modeling and professional connections, raised $16.8 million in Series A funding. Led by Prelude Ventures, with SJF Ventures, Watsco Ventures, and existing investors, this signals innovation in how homeowners interact with and manage their properties digitally.
The intersection of AI and entertainment is also fertile ground for investment, as seen with Hook, a New York City-based site using AI to remix songs, raising $10 million in Series A funding. Khosla Ventures led this round, joined by Point72 Ventures, Imaginary Ventures, and Waverley Capital, indicating a vibrant future for AI-powered creative tools.
Further bolstering the fintech landscape, Monark Markets, a New York City-based private markets investing platform, raised $8.1 million, led by F-Prime, with The Treasury, Commerce Ventures, Grit Capital Partners, and BBAE Holdings. This demonstrates the continued democratization and digitization of private market access. Cross-border payments also received a boost, with EFEX, a Mexico City, Mexico, and Palo Alto, Calif.-based global treasury and cross-border payments company, securing $8 million in seed funding from PayPal Ventures, Floodgate, Contour Venture Partners, and Nido Ventures. This addresses the increasing need for efficient international financial transactions.
Compliance tools for financial services saw investment in Copla, a Vilnius, Lithuania-based developer, raising €6 million ($7.1 million) in Series A funding. Iron Wolf Capital led the round, joined by Operator Stack and existing investors, emphasizing the importance of regulatory adherence in the financial sector. In sports technology, SportIQ, a Helsinki, Finland, and Glendale, Calif.-based developer of smart basketball and app-based shooting coaching technology, raised $6.2 million in Series A funding from KB Partners, Koppenberg Management, Match Ventures, and others, showcasing innovation in athlete training. Finally, Synchrony (distinct from Synchrony Ventures), a Jersey City, N.J.-based respiratory care technology company, raised $5 million, led by Edge Medical Ventures, with the New Jersey Economic Development Authority, while Rizon, a Lewes, Del.-based neobank, secured $2 million in pre-seed funding from Market One Capital, reflecting continued disruption in traditional banking models.
Beyond individual company investments, major venture capital and private equity firms also raised substantial new funds, indicating significant dry powder ready to be deployed. Battery Ventures, a Boston, Mass.-based VC firm, closed its 15th fund at $3.25 billion, focusing on tech companies. JLL Partners, a New York City-based private equity firm, raised $1.4 billion for its ninth fund, targeting healthcare, industrials, and business services. And Quantonation, a Paris, France-based venture capital firm, secured $260 million for its second fund, specifically aimed at quantum technologies companies, highlighting a forward-looking investment in emerging frontier tech. This vibrant fundraising environment signals sustained investor appetite for innovation across all stages and sectors. In terms of exits, Perch Energy, backed by Arborview Capital and Nuveen, acquired Solstice, a community solar acquisition and development management company, and BayPine agreed to acquire Relation Insurance Services from Aquiline Capital Partners, demonstrating active M&A markets. Leadership changes also reflect market dynamism, with Lead Edge Capital promoting Zach Ullman to partner.
In conclusion, the evolution of the wallet from a physical necessity to a dynamic digital interface represents a profound shift in consumer behavior and business engagement. Badge’s significant funding round positions it at the forefront of this transformation, aiming to build a more interactive, personalized, and efficient digital commerce ecosystem. As venture capital continues to fuel innovation across diverse sectors, the digital wallet stands out as a pivotal battleground for the future of how individuals manage their lives and interact with the world around them.