Bits funding news

Bits funding news

Sep 8, 2022

Bits Technology raises €1M in pre-seed financing to reshape how fintechs build products Stockholm, Sweden — 2022-09-08.

Bits Technology has closed a €1M pre-seed funding round to rethink and, ultimately, reshape how global fintechs build financial services. The boost in capital will primarily go towards business development and to accelerate recruitment across engineering teams with an outlook to their forthcoming launch.The round is led by European early-stage venture capital firm Cherry Ventures, who have previously been the first backers behind top Nordic brands and fintechs like Juni, Moss, Mondu, and Hedvig. Alliance Ventures, Forward VC, and Greens Ventures are also joining the round. The team has gained additional backing from a supergroup of angel investors who bring strategic experience from leading fintechs and SaaS companies in the Nordics and beyond, such as Klarna, iZettle, Pleo, and Moss.As an industry, fintech, be it B2B or consumer, seeks to make financial services easier for customers worldwide to manage their money and related items. Yet, achieving that ease for customers isn’t without hurdles for the fintechs themselves. Presently, fintech companies worldwide struggle with streamlining infrastructure workflows during initial product development and also during product expansion phases. This results in complicated service provider integrations leading to lengthy times-to-market and a ripple effect of other issues.Bits is building a product to improve this. The Bits platform both orchestrates and automates the management of other fintechs’ infrastructure providers with a low-code experience. By using Bits’ platform, fintech companies — namely, their product and developer teams — all over the world can securely manage and optimise the integrations that are needed for their solutions. In doing so, Bits will make fintech’s product development and go-to-market timelines far faster and more efficient.Having spent the last 10 years at successful fintechs such as Tink and Klarna as well as big tech companies like AWS and Apple, the founders — Jonatan Klintberg, Robin Lantz and Fredrik Eriksson — aim to utilise their combined experience plus a highly technical, design and customer centric strategy to execute on their product and vision.

Jonatan Klintberg, co-founder & CEO says, “Over the years, we have seen an increase in access to service providers that developers can utilise to build their products. This, in essence, is a positive move, but not without flaws. What we have witnessed as a result is also a delay in go-to-market stemming from the time-consuming task of building integrations to all of these connections. This is what we are solving. With the Bits platform, fintech companies will be able to shorten their development time by connecting to these external service providers through one single integration, allowing them to focus on what they actually care about – building excellent financial products that their customers love.”

The global open banking market continues to grow, with some estimating it will reach $48bn in 2026 from $15bn in 2021. While open banking presents a number of opportunities, open banking itself is just one step towards hacking into and creating more opportunities within open finance overall. Why is this important? Open finance will enable a wider range of industries and technologies to provide and adopt financial services layers. The Bits team believes the transformation to open finance will accelerate infrastructure, improve third-party integrations, and reduce compliance complexity. Bits is set to play a central role in this arena by empowering those who build fintech products to manage this with ease and in a well-designed experience.

“At Cherry, we are driven to back founders who are simplifying and improving the customer experience. With Bits, Jonatan, Robin, and Fredrik helping fintechs create financial services products with ease. First step is that they’re creating a platform that automates the management of other fintech infrastructure providers. This leads to shorter lead times and a faster rate of expansion, which benefits the entire ecosystem. We are incredibly excited to work with this super trio who have solid experience in the field and the right background to build this.”

Sophia Bendz, GP at Cherry Ventures, Board Member at Bits Technology

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