Fintech valuations and funding rounds had a tough year in 2023 as high interest rates pushed investors into capital conservation mode. 

In 2023, “VCs were just trying to protect their own portfolios and be cautious with their investments,” Robin Scher, head of fintech investment at Lloyds Bank, said at FinovateEurope last month. “Fintechs that raised capital in 2021 at high valuations had to raise another round or look toward bridge financing at lowered valuations.”

Globally, $35 billion, flowed toward fintech investment in 2023, down 50% compared with2022, partly due to Federal Funds Rate increasing by 525 basis points in 16 months, pushing “investors to wait on the sidelines and [recording] the massive drop in investing last year,” Dallin Bills, principal at Battery Ventures, said at FinovateEurope. 

“I think we’re reaching a point where we can see steady valuations and they are back on Earth, but funding will only really pick up maybe in the second half of this year,” Scher said. 

Despite the slowdown, some companies that raised money in the past few weeks: 

Synctera raises $18.6M in series A 

Banking as a service provider Synctera has raised $18.6 million in series A funding, with venture capital companies Lightspeed and Fin Capital as lead investors, according to a March 4 release from Synctera. 

The money will be used for scaling the company’s embedded banking and finance offerings, the release stated. 

In March 2023, NAventures, the National Bank of Canada’s corporate venture arm, invested $15 million in Palo Alto, Calif.-based Synctera, according to the release. 

The $1.3 billion Regent Bank and $3.67 billion Coastal Community Bank use Synctera’s BaaS, according to Synctera’s website.  

The company has raised $79 million since its 2020 founding, according to Crunchbase. 

Argyle raises $30M in series C funding 

Payroll tech provider Argyle has raised $30 million in a series C round, lead by Rockefeller Asset Management’s Fintech Innovation Fund and Bain Capital, according to a March 4 release from Argyle.  

The money will be used to scale the company’s offerings and grow its client base, an Argyle spokesperson told Bank Automation News. 

In 2023, the company onboarded more than 90 new customers, 40 of which are larger enterprises, the spokesperson said. 

Lake Michigan Credit Union, AmeriHome Mortgage, Lending Club, MoneyLion, Checkr and Regional Finance are some of Argyle’s customers, and it partners with Fannie Mae and nCino, the spokesperson said. 

The company sees strong demand for its services in the U.S. and is “focused on fully scaling in the U.S. market,” the spokesperson said. 

Argyle has raised $100 million since its inception in 2018, according to Crunchbase.  

Fijoya raises $8.3 million in seed funding 

AI-driven employer-sponsored health and wellness services provider Fijoya has raised $8.3 million from venture capital firm Team8, according to Fijoya March 7 release. 

“These funds will be used for product enhancements and expanding our market traction,” a Fijoya spokesperson told BAN. “We will specifically focus on the further facilitation of payments and payments infrastructure, advancements to our AI recommendation engine and broadening the scope of our services provided on the platform.” 

The platform uses gen AI and large language models to enable employers to connect their employees with a health service provider that fits their needs, the spokesperson said. 

The company has raised $8.3 million since its inception in 2023, according to Crunchbase. 

Parlay raises $1.3 million in pre-seed funding 

Small business loan facilitator Parlay has raised $1.3 million in a pre-seed round from Strivers Capital, Service Provider Capital and Capacity Capital, according to Parlay’s Feb. 14 release. 

Parlay helps small businesses connect with credit unions and banks to facilitate loans on its digital platform, a company spokesperson told BAN. 

The money will be used to scale the company’s platform and attract more small and medium-sized businesses, the spokesperson said, adding that Parlay has created a user-centric platform that “utilizes the data gathered during the application process to power a recommendation engine that provides insights to business owners on their loan eligibility and financial health.” 

“This system helps small businesses understand how their financial health impacts their loan prospects and transforms a ‘no’ into a ‘not yet,’” the spokesperson said. “Applicant behavioral analytics, cash flow and industry benchmarks are incorporated into the evaluation process.” 

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