Thanks to the latest advancements in technology, almost all sectors are finding innovative ways to upgrade their working. Banking is one of them and with digital banking on the rise, we’re observing a gradual shift in the way traditional banking services are rendered. However, the systems on which most banks work are mostly outdated. Bringing new methods to handle the needs of modern banking is the Amsterdam-based scaleup Five Degrees, which has raised a notable €22M in its latest funding round.
With the latest funding of €22M, Five Degrees plans to further accelerate the development of its entirely new, cloud-native core banking platform. The company is also poised to double down on its sales and marketing efforts next year. This new funding was the largest till date for the scaleup, which was led by Velocity Capital FinTech Ventures. Reggeborgh and Atlas Invest. Karmijn Kapitaal, 5Square and other existing investors also participated in the round.
Martijn Hohmann, CEO of Five Degrees, comments, “I am extremely pleased with this funding round. It validates the incredible work performed by our team over the past two years, building a cloud-native core-banking platform from scratch. These solutions reflect our decade of experience and learnings from serving banks in Europe and North America. Five Degrees is geared to help banks reap the benefits of cloud-native technology”.
Next-gen cloud-native banking platform
Launched back in 2010, Five Degrees was founded by Martijn Hohmann and Bjorn Holmthorsson. The company offers core banking technology that is touted to assist with real-world banking requirements, which are needed in the digital era. The company holds over ten years of experience in supporting banks and lenders in The Netherlands, Iceland, Germany, the UK and the US. It currently serves over 20 clients, some of which include ABN AMRO, TD Bank, Van Lanschot and KNAB.
This new round of funding for the company comes after a long time. It had previously raised €10M in late 2016. Karmijn Kapitaal became a shareholder in the scaleup, as part of this round.