Sila, a banking and payments API platform for software teams, announced the closing of a $7.7 million seed funding round.
The round was co-led by Madrona Venture Group and Oregon Venture Fund, with participation from Mucker Capital, 99 Tartans, Taavet Kinrikus (CEO & Co-founder of Transferwise), and Jerry Neumann (investor and entrepreneur).
As part of the funding, Hope Cochran, Managing Director at Madrona Venture Group, and Rick Holt, Lead Investor, Oregon Venture Fund, will join the Sila board of directors. Matt Compton, General Partner at Oregon Venture Fund, will also join as a board observer.
The company plans to use the new funds to accelerate growth and introduce new product features to provide software developers with easier access to the global financial system.
“The global financial system is broken – despite the global payments industry being $1.9T in revenue, it doesn’t serve consumers, small businesses, or the innovators trying to reach them. It is too expensive, inefficient, tightly regulated, and difficult to integrate into FinTech applications. This kills fintech innovation at a time when we need it more than ever,” said Shamir Karkal, Sila CEO & Co-founder.
“Despite money being effectively digital for decades, the world of finance has still not truly been disrupted by the Internet. The global financial system isn’t controlled by PayPal or Stripe, but by 30,000 global banks that still run on outdated payment systems like ACH. Our mission is to unite all the payment systems in one programmable layer to spur the next phase of financial innovation.”
Sila is a banking and payment platform for software teams building the next generation of financial products and services in regulated and unregulated industries. The Sila API enables white-label ACH payment processing, money transfer, digital wallets, bank account linking, and identity verification of business and individuals. The API includes a built-in stable coin for operational purposes – SILA – which is an ERC-20 token pegged 100:1 to the US Dollar, with fully insured funds held by an FDIC member bank.
The company will soon be adding support for card payments, business ID verification, and international payments.
Image Credit: Sila