Thought Machine raised $200M at a $1B Valuation
Thought Machine, a 2014 (Xoogler) startup that delivers cloud-based b2b financial services, has secured a $200 million Series C funding and declared unicorn status (passing a $1 billion valuation). The current round of funding follows an $83 million Series B round last year when the business stated its market valuation to be “growing nicely.”
Nyca Partners, a New York and San Francisco-based company led the Series C round. ING Ventures, Standard Chartered Ventures and JPMorgan Chase Strategic Investments were among the new investors. Moreover, the current round of funding was sponsored by Lloyds Banking Group, which also led Thought Machine’s Series A. Apart from that, Eurazeo, British Patient Capital, SEB, Molten Ventures (previously Draper Esprit), IQ Capital and Backed are among the current investors returning for Series C.
Thought Machine claims to be a provider of “cloud-native core banking technology.” Whereas it sells cloud-based banking facilities to both existing and new banks that want to offer cloud-based solutions to their customers. They can accomplish so by transitioning away from mainframe and traditional banking systems, or by delivering cloud-based services from the start.
Thought Machine’s Series C funding comes after a period of rapid expansion, with the company adding 200+ workers in 2020. Also, due to shifting to a larger London headquarters to handle its increased staff. Besides, the fresh funds can be utilized to support the growth and advancement of its flagship SaaS product Vault, a cloud-native platform that its b2b clients rely on to deliver a variety of retail banking services, including checking accounts, loans, savings accounts, and credit cards, as well as mortgages.
Vault is based on APIs and employs a microservice architecture as well as a Smart Contracts system. It is hosted on the customer’s preferred cloud provider, which includes Google Cloud Platform, Microsoft Azure, Amazon Web Services, and IBM Cloud. Benefits offered include more flexibility and scalability, and cheaper operational expenses as compared to outdated systems.
In a statement, Thought Machine CEO and founder Paul Taylor stated we set out to eliminate old technology from the sector and ensure that all banks using Vault can prosper and meet their goals. The managing partner at Nyca Partners, Hans Morris added in a championing statement: “Thought Machine is the premier innovation among the current generation of cloud-native core platforms. As a result, it has emerged as the preferred option for tier one institutions looking to update their fundamental architecture.
Thought Machine’s engineering methodology, according to these institutions, is unparalleled; Vault is very adaptive, versatile, scalable, and particularly tailored for the tough system and demands of tier one banks. Finally, investing in Thought Machine is a forward-thinking strategy, and we are pleased to collaborate with all professionals to set new standards in core banking technology.