Just recently tech startup Canopy has finalized Series A fundraising amounting to $15 million. Canopy’s chief product is software that is used by financial institutions. Canopy’s software makes it possible for said financial institutions to develop loan programs then provide maintenance services for the programs they create.
In Canopy’s 2020 seed round the startup was able to raise $3.5 million. At the forefront of Canopy’s Series A funding was the firm Canaan. BoxGroup, Foundation, Homebrew and other groups also participated in the early round of funding.
Since it first got started to the present, Canopy has raised a total of $18.5 million. In an interview with TechCrunch Matt Bivons, who is Canopy’s CEO, shared his perspective on the future of fintech and subsequently Canopy’s role in that future.
Canopy’s current mission is to address problems Bivons encountered when dealing with loan servicing during his time working for other companies. When Bivons originally founded Canopy alongside Will Hanson it was geared towards creating a credit card meant for students to use.
Afterwards, both founders redirected Canopy into being a B2B company. From then on its focus was the development of loan servicing technology. According to Bivons, Canopy will effectively be an API for the creation and management of loans that loan servicing organizations can utilize no matter how fresh or old.
Bivons believes that in the future companies will not purchase financial technology and connected services as singular monoliths to cover everything. On the contrary, Bivons believes these future companies will purchase the APIs best suited for specific tasks and needs. Much like buying a computer by each component, tailored to your purpose for that computer rather than just buying an entire computer of one brand.
Canopy has been enjoying remarkable growth. Between February and May of 2021, its customer count increased by 4.5x. Despite being in its youth and likely possessing merely a small customer base starting out, for a fresh startup to enjoy such growth is nonetheless noteworthy.