Two fintech startups that focus on the plumbing of the financial system drew nearly $30 million in separate investments, it was announced this week.
Five Degrees of the Netherlands says it raised a total of 10 million euros from Karmijn Kapitaal, a new investor, and from existing shareholders 5Square and Velocity Capital Private Equity. Five Degrees is in the highly sexy field of business process management — its goal is to help legacy banks join the digital banking world with its Matrix solution. For two consecutive years, Five Degrees made the FinTech 50 list, a watchlist of top innovators in Europe.
Karmijm Kapitaal, founded by three women, focuses on investing in companies with diversity — which could mean that women should start applying for senior jobs at Five Degrees. On its website, three of the four top execs listed are men.
Five Degrees says it will use the money “to further implement its growth strategy focusing on product development and international expansion.”
AvidXchange of Charlotte, N.C., also announced this week that it had brought in $18 million in a “strategic investment” with Fifth Third Capital and Pivot Investment Partners. AvidXchange has made its mark creating automated account payable systems for small businesses. Last year, AvidXchange raised $225 million in a “minority growth investment” from a group of heavyweights, including Bain Capital Ventures, TPG, Square 1 Bank, and Nyca Parners. Also part of that raise: Fifth Third’s fellow Ohio-based rival KeyBank. Let the bank investing wars continue!
In a statement, AvidXchange said it “will use this funding to invest in the development of new, innovative technologies to further serve its clients and high growth, to develop new sales channels, and to hire staff to support its rapidly growing customer base.”Like This Post