When you link your checking account to Venmo or use it to buy Bitcoins, a startup called Plaid Inc. is likely facilitating the connection with your bank. You punch in your user name and password; Plaid checks those credentials with the financial institution and if they’re accurate, passes banking information back to the app. That’s it.
This kind of software has been around for decades. But in the last year, Plaid has captured investors’ attention. The San Francisco-based startup was the subject of a bidding war among venture capitalists and at least one tech company, ultimately resulting in a $250 ...