Treasury Prime raises $20M to scale its banking-as-a-service biz
This morning Treasury Prime, a banking-as-a-service startup that delivers its product via APIs, announced that it has closed a $20 million Series B. The capital comes around a year since the startup announced its Series A, and around 1.5 years since it raised its preceding round.
For Treasury Prime, the new capital was an internal affair, with prior investors stepping up to lead its new round of funding. Deciens Capital and QED Investors co-led the round, with Susa Ventures and SaaStr Fund also putting cash into the transaction.
As is increasingly common among insider-led fundraises in recent years, the startup in question was not in dire need of new funding before the new investment came together. In fact, Treasury Prime CEO Chris Dean told TechCrunch that his firm is “super capital efficient” in an interview, adding that it had not tucked into its Series A capital until January of this year.
So, why raise more funds now? To invest aggressively in its business. That plan is cliche for a startup raising new funding, but in the case of Treasury Prime the move isn’t in anticipation of future demand. Dean told TechCrunch that his startups had run into a bottleneck in which it could only take on so much new customer volume. That’s no good for a startup in a competitive sector, so picking up its spend in early 2021 and raising new capital in mid-2021 makes sense as it could help it hire, and absorb more demand, more (Read more...)