B2B FinTech Reserve Trust Lands $30.5M Investment

FinTech trust company Reserve Trust, which has a Federal Reserve master account, announced in a press release Wednesday (Aug. 4) that it has secured a $30.5 million Series A investment in a round led by QED Investors.

FinTech Collective and Ardent Venture Partners also participated in the funding round, which included $17.9 million in secondary shares, the release stated. The money raised in this round will be used to help Reserve Trust add to its team and invest in technology that will streamline the payment process.

Reserve Trust works with businesses that aim to embed payments for both domestic and cross-border B2B transactions. Customers store their money in custody accounts that are backed by Reserve Trust’s Federal Reserve master account and transfer funds using automated clearing house (ACH), Fedwire, SWIFT and other payment systems, according to the release.

The company also announced in the release that Dave Wright has been named CEO, and Dave Cahill is now the chief operating officer. Wright and Cahill last partnered on the executive team at cloud storage company SolidFire, which Wright sold to NetApp in 2016.

Reserve Trust raised $5 million in a seed round in October 2019, the release stated.

Reserve Trust isn’t the only company seeing investors shell out big bucks to be part of the ride to the top.

Read more: B2B Payments Take Center Stage With VCs

Nium last week announced more than $200 million in Series D funding raised for its technology. The funding round propelled Nium to become Southeast Asia’s first B2B payment unicorn.

Nium said it plans to deploy the funding to invest in its payments infrastructure, expand geographically and across new verticals as well as finance strategic acquisitions.

Additionally, small business team management platform Homebase raised $71 million in a Series C funding round last week.

The startup helps small- to medium-sized businesses (SMBs) manage their hourly workers with a variety of services, including payroll, timesheets, human resources, hiring and onboarding. The company will use the money to focus on growth, customer acquisition and product enhancements.