Digital Bank Grasshopper Secures $30.4M to Drive Growth
Digital commercial bank Grasshopper Bank has raised $30.4 million to support its growth across the business and innovation economies and meet clients’ expectations by providing the latest technology and digital banking solutions.
The funding round came from existing backers Patriot Financial Partners, Endeavour Capital Advisors, FJ Capital Management and Carpenter & Company, with participation from new investor GCP Capital Partners. With the new capital, Grasshopper Bank has raised $160 million to date, according to a press release Monday (Aug. 1).
See also: Grasshopper on the Importance of Offering Secure, Frictionless Money Mobility
Christopher Mastrangelo, chief compliance officer at Grasshopper, told PYMNTS earlier this month that Grasshopper believes in investing in technology that provides security around money mobility. Biometrics and other cutting-edge tools have made money movement instantaneous, frictionless and secure.
Digital solutions have also become key priorities for businesses looking for the best places to bank, and Grasshopper has worked to position itself to provide small- to medium-sized businesses (SMBs) and entrepreneurs with a full suite of digital tools, according to the release.
“Our strategic direction is set,” said Mike Butler, CEO of Grasshopper.
He added that the assistance of backers in this new funding round helps “further support our growth” and offer clients “personalized digital banking solutions.”
Read more: Digital Bank Grasshopper Revamps With Tech Upgrades, New Leadership
Butler took over as the CEO of Grasshopper last May and expanded its management team before the year was over. Under his leadership so far, the bank has also added three new business lines supporting the SMB market and expanded to include two new deposit gathering business lines, according to the release.
Under Butler, Grasshopper also launched a Banking-as-a-Service (BaaS) platform, including a recently announced partnership with Treasure Financial, and rolled out a full suite of digital banking tools for SMBs, including a digital business checking account, rewards debit card and instant-issue virtual debit cards.
Related: PYMNTS Intelligence: SMBs Turn Toward Banks Offering Digital Solutions
Additionally, Grasshopper will add Boris Gutin from GCP Capital Partners and Bradford Kopp to its board of directors. Butler assumed the role of chairman of the board, succeeding John Flemming, who stepped down from this role but remains on the board.