Our Investment in Finix’s Series B Round
Payments companies today are increasingly hidden in plain sight.
Uber, Airbnb, MindBody, Zola…what do companies that provide ride sharing, vacation house renting, beauty appointment scheduling, and wedding gift registering all have in common? They’re all payments companies. Why? Because large marketplaces and software providers have realized that they can meaningfully increase their margins or even generate all of their revenue through payments. As a result, they have giant teams dedicated to managing development and long-term maintenance of complex payment systems. And, yet, we all know that payments infrastructure is not what makes these companies great. They are valued for the consumer or end-user experiences they offer. And the fact that they dedicate so many resources to building payments in-house should be as surprising to you as if they built their own payroll system or their own internal messaging app. Payments infrastructure is not these companies’ core competency. Building it themselves just doesn’t make sense.
Until recently though, there wasn’t a good alternative. Enter Finix. Finix is doing to payments what Amazon AWS and Microsoft Azure have done to web services over the past decade. And so far, Finix’s focus on helping more software companies embed a native payments layer into their products is paying off, attracting a diverse set of customers like Lightspeed POS, Passport Labs, and Kabbage.
Finix’s core modules provide the foundational building blocks that allow its customers to build differentiated applications with unique card acceptance, funds flow, and disbursement characteristics. Customers are able to take resources that would have been spent on integrating into legacy payment systems and put them back to work on their core product offering. For merchants using software platforms that have embedded payments, that means an end-user experience that is much better suited to the goals of the software. And if that weren’t enough, Finix transforms payments from being a cost center to generating margin for its customers.
The Acrew team is pleased to support Finix in their recent round of Series B funding. Sean Donovan and Richie Serna, Finix’s co-founders, exemplify the kinds of founders we believe in at Acrew. We’ve never seen two people smile so widely when talking about payments infrastructure. The team they are building is similarly ambitious, tenacious, experienced, and obsessed with transforming payments for the modern world.
At Acrew, we’ve seen strong demand for more modern financial infrastructure from the tech industry at large. Even companies that wouldn’t otherwise be considered financial services companies are increasingly looking to incorporate financial products into their offerings. Finix addresses this market demand and has a significant opportunity ahead. We’re excited for all that the team is positioned to accomplish and glad to be collaborating with them.
Vishal Lugani, Lauren Kolodny, and the Acrew Capital Team