Treasury Prime
Treasury Prime, a San Francisco-based embedded finance startup, raised $40 million in Series C funding led by BAM Elevate.
Why it matters: Despite an overall slowdown in fintech funding, embedded finance continues to be a hot sector for dealmakers.
How it works: Treasury Prime brings a marketplace angle to the banking-as-a-service (BaaS) sector, as it seeks to play matchmaker between banks and fintech startups.
- Unlike some BaaS providers, which may partner with just one or two banks, Treasury Prime currently works with 16 different banks.
- That gives it the ability to connect fintechs with specialized financial institutions (e.g., banks willing to serve the cannabis industry).
- It enables its fintech clients to seamlessly transfer funds between multiple banks they have relationships with.
Between the lines: Treasury Prime plans to use the funding to expand its banking relationships by signing up partnerships with more financial institutions.
- It also hopes to expand its product capabilities to include lending in the future.
State of play: Dealmaking has picked up in the embedded finance space, where venture investors and potential acquirers are seeking out fast-growing startups that are building more modern tech infrastructure for fintechs and legacy financial institutions alike.
- This week, publicly traded card issuing firm Marqeta agreed to acquire Power Financial, which built its own full-stack card issuing platform, for up to $275 million.
- And Moov, which provides an open-source platform for accessing payments and banking services, announced yesterday that it had raised $45 million in Series B funding.
Of note: Banc Funds and Invicta also participated in the round, along with existing investors Deciens, QED and SaaStr.
- The company has raised $73 million since its inception.