PortX secures $16.5 million in Series B Funding with investors focused on community financial institutions
● Funding underscores shift toward open banking and the demand for seamless core integration and innovation ● Investors represent 200 community financial institutions ● PortX forms Credit Union Service Organization (CUSO)
SEATTLE, WA (October 3, 2023) — PortX, a transformative leader in open banking and seamless core integration for community financial institutions, is excited to announce the successful closing of a $16.5 million Series B funding round. The round was co-led by FUSE, a Pacific Northwest-based venture capital firm, and Curql, a collective of forward-thinking credit unions. They are joined by BankTech Ventures, EJF Capital, and the Btech Consortium – all financial services-focused investment firms representing nearly 200 community financial institutions. Today’s announcement comes one year after the company secured $10M to close its Series A funding.
Monumental investment from community banks and credit unions
A standout feature of this funding round is the robust representation and commitment from nearly 200 community financial institutions that make up its investor groups, highlighting the company’s influence and credibility in the financial services space. Community banks, represented by BankTech Ventures, EJF Capital, and the Btech Consortium, continue to demonstrate their collective belief in PortX’s promise and direction. Similarly, credit unions, under the banner of Curql have shown their confidence in PortX’s solutions tailored to their unique needs. This widespread and diverse institutional backing underscores not only PortX’s common appeal but also its flexibility to cater to the distinct challenges and aspirations of both community banks and credit unions in a rapidly evolving financial ecosystem.
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.”
David Wexler, CEO of PortX, commented, “What excites me most about this investment is the outpouring of support from investors who are backed by the same institutions we serve. That’s a major vote of confidence and serves as both validation of our efforts and a testament to our growing influence in the fintech landscape.”
Launch of PortX CUSO: A New Level of Commitment to Credit Unions
The establishment of a Credit Union Service Organization (CUSO) marks a strategic move for PortX to better serve its credit union customers. This specialized unit will focus on customizing PortX’s solutions to meet the unique requirements and regulations of credit unions. The CUSO ensures that credit unions will benefit from tailored solutions that enhance member engagement and operational efficiency while also navigating regulatory requirements. This initiative underscores PortX’s commitment to delivering more relevant and customized offerings to its credit union customers.
Nick Evens, President and CEO at the Curql Collective, 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.”
David Wexler added, “Credit unions have been early adopters of the PortX platform from the very beginning. Not only am I excited to have Curql join this round, I’m thrilled for the creation of the PortX CUSO, which will further refine our solutions for some of our most loyal customers.”
Funding to Drive Several Key Initiatives for Financial Institutions
The infusion of Series B funds allows PortX to concentrate on transformative initiatives that will benefit both community banks and credit unions in the following ways:
- Building the next generation of products and support: PortX will invest in the development of new products that redefine how financial institutions connect with evolving technologies, delivering unparalleled technological advantages.
- Enhancing AI offerings and data automation components: New funding will accelerate the improvement of AI offerings, enabling banks and credit unions to make data-driven decisions and automate processes efficiently.
- Speeding up fintech connectivity through a marketplace of connectors: Expanding PortX’s marketplace will drastically reduce the time required for banks and credit unions to integrate third-party apps and fintech solutions, offering unprecedented operational efficiency.
- Driving forward a paradigm of low-code tooling: This investment will allow further development in low-code tools that enable financial institutions to adapt rapidly in a fiercely competitive landscape.
- Developing exceptional technology for banks and credit unions: The funds enable PortX to double down on solving the complex demands of the financial services industry, enabling the next generation of FIs through state-of-the-art technology.
A New Chapter for PortX and Community Financial Institutions
“We at FUSE see PortX as a game-changer in the open banking ecosystem. Their vision and technology align perfectly with the industry’s evolving needs,” said Brendan Wales, Founding Partner at FUSE. “This is our second investment in the company, and it’s not just a vote of confidence in PortX, but a bet on the transformative power of open banking in shaping the future of commerce and financial services. And it’s exciting to partner alongside other visionary investors who are equally committed to innovating and improving financial services for FIs.”
PortX is an integration technology company focused on financial services infrastructure that delivers open access to core data and enables rapid project delivery, innovation, and optimal customer experiences. Our solutions facilitate interoperability between internal systems and member services such as online banking, credit checks, mortgage and loan applications, and more, allowing for a real-time 360-degree view of the customer. We help financial institutions empower their teams to connect to fintech partners and real-time payment networks like Zelle®, ACH, Fedwire, Mojaloop, and others. For more information, please visit www.portx.io.
FUSE is an early-stage venture capital firm investing in Pacific Northwest-based Seed and Series A companies that are reinventing the modern economy with software. FUSE is committed to supporting the next generation of B2B technology entrepreneurs building category-defining businesses of lasting value. Founding Partners Kellan Carter, Brendan Wales, and Cameron Borumand are joined by Venture Partner and 8-time Pro-Bowler Bobby Wagner, as well as Senior Operating Partners John Connors and Satbir Khanuja. The strategic LP base includes current and former executives at the Pacific Northwest’s top companies, including Microsoft, Amazon, Nike, Starbucks, Costco, T-Mobile, Avalara, DocuSign, Smartsheet, and many more. For more information, please visit www.fuse.vc.
About Curql Collective
Curql Collective is a collaborative approach that brings investment capital, credit unions, and fintech together. Launched in 2020, Curql is steered by a collective of forward-thinking credit unions, including former founders, operators, and leaders in the fintech and investment spaces. The group’s flagship – Curql Fund I – invests in the visions of entrepreneurs who thoughtfully and purposefully develop financial services technology that revolutionizes and innovates how people engage with their money. For more information, please visit www.curql.com.
About BankTech Ventures
BankTech Ventures identifies and invests in leading bank technology companies and is deeply entrenched in community banking to ensure its companies work effectively and efficiently with banks to deliver maximum value and impact. BankTech’s unparalleled ecosystem is designed to deliver compelling innovation with community banks at the center of it all – bringing together bankers, industry organizations, and tech founders to work collaboratively to accelerate innovation in banking. Follow BankTech on LinkedIn and X. For more information, visit www.banktechventures.com.
About EJF Capital
EJF Capital LLC is a global alternative asset management firm headquartered outside of Washington, D.C. with offices in London, England and Shanghai, China. As of June 30, 2023, EJF manages approximately $6.6 billion1 across a diverse group of alternative asset strategies. The firm was founded in 2005 by Manny Friedman and Neal Wilson. To learn more, please visit http://ejfcap.com and please read additional Risks and Limitations located here.
About the Btech Consortium
The Btech Consortium is a strategic partnership between community banks, Elizabeth Park Capital Management, and Strandview Capital. The mission of the Consortium is to empower community banks through technology to compete more effectively with money center banks and be less constrained by legacy technology platforms. The Btech Consortium invests in emerging technology companies that empower community banks and accelerate their technology initiatives. The Consortium is designed to help bank members gain insights into emerging fintech trends, make better technology roadmap decisions, and vet fintech vendors more efficiently. For more information, please visit www.btechconsortium.com.
1 Approximate total firm AUM which includes $3.2 billion in CDO assets through affiliates.