In antiquity, it was leather pouches for coins. In the Renaissance, it was folding pocketbooks that developed alongside the rise of paper currency. And now, with smartphones, it’s something else altogether. 

“The future of the wallet is very different than it is today, as it’s becoming a much more dynamic surface,” said Eric Senn, CEO and cofounder of digital wallet development startup Badge. He pointed to Apple’s new ticket interface as an example—not just a ticket but a portal to merch, food ordering, and venue maps. To Senn, it’s part of a larger shift: the wallet becoming a core layer of the iOS and Android ecosystem, not just a feature tucked inside it.

Senn—who previously cofounded mobile commerce marketplace Storr—has bet the next phase of his career on this trajectory. And investors are getting on board: Badge has raised $17.1 million in funding, Fortune has exclusively learned. This includes a $13.8 million Series A, led by TTV Capital and with participation from Stripe, Synchrony Ventures, and Infinity Ventures. (The company, founded in 2023, also raised a previously unannounced $3.3 million seed round, with QED Investors and Infinity as investors.) 

“When you think about surfaces, we have websites and apps, and this is a new surface that brands have to play in,” said Senn. “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.”

“Wallets have guaranteed reach,” Senn points out. “They’re pre-installed on users’ phones. 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.”

The biggest challenge in mobile wallet commerce, Senn says, isn’t growth—it’s not wrecking the channel. Badge focuses on the revenue-driving functions that make wallets sticky: loyalty programs, gift cards, membership cards, tickets. But app fatigue is real, and Senn says the team is actively thinking about retaining integrity—how to build guardrails that prevent wallets from going the way of email and SMS, buried under spam.

I do think there inevitably will be digital wallet spam, for the record. (It’s the way of the world.) But I also do think that Senn’s right, that our relationship to our money-carrying entities is changing.  

“We’re kind of entering this new world where maybe our kids won’t even have physical wallets,” said Senn. “I think that represents a really big opportunity for businesses to play in this new digital space. You can have a relationship with someone’s wallet versus a physical card. We’re just scratching the surface of where it will be.”

See you tomorrow,

Allie Garfinkle
X: @agarfinks
Email: alexandra.garfinkle@fortune.com
Submit a deal for the Term Sheet newsletter here.

Joey Abrams curated the deals section of today’s newsletter. Subscribe here.

VENTURE CAPITAL

- Vestwell, a New York City-based savings platform, raised $385 million in Series E funding. Blue Owl Capital and Sixth Street Growth led the round and were joined by Neuberger Berman, SLW, Morgan Stanley, and others.

- Korsana Biosciences, a Waltham, Mass.-based developer of therapeutics for neurodegenerative diseases, raised $175 million in funding across seed and Series A rounds from Fairmount, Venrock Healthcare Capital Partners, Wellington Management, TCGX, and others.

- Heron Power, a Scotts Valley, Calif.-based energy infrastructure company, raised $140 million in Series B funding. Andreessen Horowitz and Breakthrough Energy Ventures led the round and was joined by existing investors Capricorn Investment Group, Energy Impact Partners, Valor Atreides AI Fund, and Gigascale Capital.

- Venice, a New York City-based account security platform, raised $33 million in funding. IVP led the round and was joined by Index Ventures, Vine Ventures, Holly Ventures, and angel investors.

- Selector, a Santa Clara, Calif.-based AI-powered network observability platform, raised $32 million in funding. AVP led the round and was joined by Ansa Capital, Two Bear Capital, Sinewave Ventures, Singtel Innov8, and others.

- Kombo, a New York City and Berlin, Germany-based developer of workforce integration technology, raised $25 million in Series A funding. Volition Capital led the round.

- Zero Homes, a Denver, Colo.-based site where users can create a digital model of their homes and connect with repair and installation professionals, raised $16.8 million in Series A funding. Prelude Ventures led the round and was joined by SJF Ventures, Watsco Ventures, and existing investors. 

- Hook, a New York City-based site where users can use AI to remix songs, raised $10 million in Series A funding. Khosla Ventures led the round and was joined by Point72 Ventures, Imaginary Ventures, Waverley Capital, and others.

- Monark Markets, a New York City-based private markets investing platform, raised $8.1 million in funding. F-Prime led the round and was joined by The Treasury, Commerce Ventures, Grit Capital Partners, and BBAE Holdings.

- EFEX, a Mexico City, Mexico and Palo Alto, Calif.-based global treasury and cross-border payments company for middle market companies, raised $8 million in seed funding. PayPal Ventures and Floodgate led the round and were joined by Contour Venture Partners and Nido Ventures.

- Copla, a Vilnius, Lithuania-based developer of compliance tools for financial services, raised €6 million ($7.1 million) in Series A funding. Iron Wolf Capital led the round and was joined by Operator Stack and existing investors.

- 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.

- Synchrony, a Jersey City, N.J.-based respiratory care technology company, raised $5 million in funding. Edge Medical Ventures led the round and was joined by the New Jersey Economic Development Authority and others.

- Rizon, a Lewes, Del.-based neobank, raised $2 million in pre-seed funding. Market One Capital led the round.

PRIVATE EQUITY

- Perch Energy, backed by Arborview Capital and Nuveen, acquired Solstice, a Cambridge mass.-based community solar acquisition and development management company. Financial terms were not disclosed.

EXITS

- BayPine agreed to acquire Relation Insurance Services, a Chicago, Ill.-based insurance brokerage, from Aquiline Capital Partners. Financial terms were not disclosed.

FUNDS + FUNDS OF FUNDS

- Battery Ventures, a Boston, Mass.-based venture capital firm, raised $3.25 billion for its 15th fund focused on tech companies. 

- JLL Partners, a New York City-based private equity firm, raised $1.4 billion for its ninth fund focused on health care, industrials, and business services companies.

- Quantonation, a Paris, France-based venture capital firm, raised $260 million for its second fund focused on quantum technologies companies. 

PEOPLE

- Lead Edge Capital, a New York City-based growth equity firm, promoted Zach Ullman to partner.