Synctera has raised $33 million in Series A funding to fuel its mission to make it easier for community banks and fintechs to work together. The round, which brought the company’s total funding to more than $46 million, featured new strategic investors such as Mastercard, as well as executives from Finovate alums like Marqeta, Feedzai, and Socure. These backers were joined by several of Synctera’s existing investors including Lightspeed Venture Partners, Diagram Ventures, Portage Ventures, SciFi Ventures, and Scribble Ventures.
“Since launch, Synctera has formed one of the best teams in the industry,” company CEO and co-founder Peter Hazlehurst said in a statement. “Bringing on a group of investors with deep industry expertise will help us meet rapidly increasing demand in our next stage of growth.”
Synctera helps community banks and fintechs achieve partnership banking at scale. The company’s platform streamlines day-to-day reconciliation, operations, and regulatory compliance for banks, while enabling fintechs to launch their solutions faster and with greater flexibility thanks to its one-stop-shop API. Part of the growing trend toward embedded finance and banking-as-a-service, Synctera will use the new capital to further build its software engineering team to speed the development of its product roadmap, as well as bolster sales and marketing efforts to help grow market share and expand internationally.
As part of the funding announcement, Syncetera also announced that it would endorse the diversity commitment from the Cap Table Coalition by allocating 10% of all funding rounds to traditionally marginalized investors.
“For this next chapter—and to put action behind Synctera’s values—we pledge to reserve 10% of this round and all future rounds to diverse investors, allowing for more representation and collaboration to further innovate the industry,” Hazlehurst said.
Emerging from stealth last year, Synctera has already secured customers in Coastal Community Bank and ONE Finance, as well as Tennessee-based Lineage Bank. The company has also partnered with money management and financial wellness platform for women, Ellevest. Check out our conversation with Hazlehurst on the Finovate Podcast with host Greg Palmer from last month.