ModernFi, NYC-based company providing a deposit network for banks, raised $18.7M in Series A funding.
The round, which brought the total amount to $23M, was led by Canapi Ventures, with participation from Andreessen Horowitz, Remarkable Ventures, and banks Huntington National Bank, First Horizon, and Regions.
The company intends to use the funds to expand operations and its business reach.
Founded in 2022 by Paolo Bertolotti and Adam DeVita, ModernFi operates a deposit network through which banks can grow, retain, and manage their deposit base by sweeping funds, sourcing deposits, and providing extended insurance to depositors through program banks. Since its first raise, the company has quickly established itself as the country’s only tech-enabled deposit network. While existing networks rely on manual processes that have limited the adoption and use of network products, ModernFi’s network is built on a modern tech stack to eliminate the friction for depositors and remove the operational burden for banks, unlocking the full potential of sweep and reciprocal products.
Commenting on the news, CEO Paolo Bertolotti said: “Faced with fundamental shifts in the behavior of deposits, institutions benefit from modern tools to manage and grow their funding. ModernFi has been privileged to help institutions of all sizes protect their deposit base, and the team looks forward to continuing its support of the sector.”
FinSMEs
22/01/2024