September 28, 2023

Update From the CEO: What Our $16.5 Million Series B Means for Financial Institutions

by David Wexler in Announcements 0 comments
  • BankTech Ventures and Curql join PortX Board of Directors
  • Investors represent nearly 200 community financial institutions
  • Formation of PortX’s Credit Union Service Organization (CUSO) strengthens our commitment to credit union customers

I am excited to share my thoughts on PortX’s momentous news – the closing of our $16.5 million Series B funding round. Co-leading the round once again is FUSE, an investor from our Series A round and a luminary in the venture capital landscape here in the Northwest. FUSE is joined by co-lead Curql, which manages a strategic investment fund representing 68 credit unions and credit union industry partners. Our lead investors are joined by BankTech Ventures (another investor from our earlier round), EJF Capital, and Btech Consortium as fellow investors. Additionally, I am looking forward to Carey Ransom from BankTech Ventures and Dave Tucker of Curql joining PortX’s Board of Directors.

Investors Represent 200 Community Financial Institutions

An energizing element about our Series B round is the strong representation and support we’ve garnered from the nearly 200 community financial institutions that are represented by our investors. This is exciting to me because it serves as both a validation of our efforts to serve financial institutions and a testament to our influence in the fintech landscape. On the banking side, our partners BankTech Ventures, EJF Capital, and the Btech Consortium aren’t just investors; they’re believers in the direction we’re taking and the solutions we offer community banks. They see us as an enabler of their growth and a catalyst for the evolutionary changes their portfolio companies face.

Carey Ransom, Managing Director at BankTech Ventures, said, “We have re-invested in PortX because they not only provide cutting-edge integration software but also actively address the major barriers community banks face in their digital transformation journey, including organizational resistance, legacy technology, and fear of disruption. This Series B funding represents our commitment to PortX and their mission to revolutionize innovation in community banking, aligning with our own goal of bridging the gap between technology and financial services.”

Mike Sekits, Co-Founder and Managing Director at Btech Consortium added, “As an organization deeply embedded in sourcing next-gen technology solutions that empower community banks, Btech sees our investment in PortX as an important step forward for our Consortium members. PortX doesn’t just react to market demands; they’re proactively shaping the industry conversation. We’re excited to partner with them as our first investment to expand their outreach and secure their position as leaders in the industry and among our members.”

Jonathan Bresler, Managing Partner at EJF Ventures, said, “At EJF, we value sustainable growth and meaningful impact, qualities that PortX embodies. We are confident that this funding will further enable PortX to break down traditional barriers in financial services, offering scalable and customizable solutions that empower institutions to optimize performance and user experience.”

The Formation of PortX CUSO

I’m very excited about how this funding will revolutionize how we work with credit union customers. Partnering with Curql has allowed us to establish a Credit Union Service Organization, or CUSO, that focuses entirely on the unique challenges and opportunities within the credit union sector. With this move, we’re ensuring that we provide credit unions with the products and services that specifically address their business needs – not only enhancing member engagement but also tackling their operational hurdles and regulatory requirements.

Nick Evens, President and CEO at the Curql Collectivel remarked, “Our investment in PortX is a statement of belief in their unparalleled technology and vision. The creation of a CUSO will deepen their relationship with credit unions, offering more customized and effective solutions. We’re proud to partner with a company that understands the unique needs of these community financial institutions.”

In a nutshell, our investor base reflects the universality of PortX’s appeal and our agility in tailoring solutions for the unique demands and challenges of both community banks and credit unions. This is what makes our journey so exciting—being at the helm of change that benefits a wide but specialized financial community.

How our Series B will elevate our customers

This new financing will fuel the next phase of growth at PortX, empowering us to expand our operations, enter new markets, and invest in technology and product development efforts to serve our customers better. This manifests itself in the following ways:

1. Building the next generation of products and support

We will invest heavily in the development of our PortX platform of products, redefining how financial institutions connect with the rapidly evolving technologies in their industry. And we’ll be able to scale our operation in a way that is unprecedented in the history of our company, ensuring that our clients can leverage these innovations to their fullest potential.

2. Enhancing AI offerings and data automation components

Artificial intelligence and data automation stand at the forefront of financial services innovation. Our new investment will accelerate the enhancement of our AI offerings, making it easier than ever for banks and credit unions to automate processes, interpret data, and make informed decisions. If you’d like to learn more about how we enable FIs to innovate through AI, check out Adrian’s new blog.

3. Speeding up connectivity through a marketplace of connectors

Today, speed is the name of the game for community FIs. Our marketplace of connectors will dramatically speed up the timeline for banks to integrate with their core, fintechs, and third-party apps, empowering them to innovate at the speed their customers need.

4. Paradigm of low-code tooling

In a competitive landscape, the key to our success is enabling our customers to outperform their competition. We’ll invest further into our paradigm of low-code tooling, allowing financial institutions to adapt quickly and efficiently without the need for expensive development resources.

5. Developing exceptional technology for banks and credit unions

Our customers are banks and credit unions. These funds enable us to double down on solving the complex demands of this industry, enabling the next generation of FIs through state-of-the-art technology. We understand the unique challenges these institutions face and have specifically designed our products to help overcome them.

A Special Thank You

Finally, a heartfelt thank you to our customers for your trust, our investors for believing in our vision, and our dedicated team members who made all of this possible. Together, we’re removing the barriers that impede innovation in financial services so that banks and credit unions can provide customers and staff with the exceptional experience that sets them apart in a convoluted industry. Join us by starting a conversation today.

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