Grasshopper Raises $30.4M to Meet Demand for Digital Banking Services in Enterprise and Innovation Economies

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Digital Commercial Banking Continues Momentum with Impressive Annual Growth in Assets, Deposits and Loans

NEW YORK, NY/ACCESSWIRE/August 1, 2022/ Grasshopper today announced the completion of a $30.4 million fundraising round, bringing the digital commercial bank’s total funding to date to $160 million. While the majority of this funding came from existing investors, including Patriot Financial Partners, Endeavor Capital Advisors, FJ Capital Management and Carpenter & Company, Grasshopper also attracted a notable new investor in GCP Capital Partners.

The advancement of digital banking offerings is clear: digital solutions are now key priorities for millions of businesses considering banking options. Grasshopper is well positioned to meet the increased demand for banking services among the millions of small and medium-sized businesses and entrepreneurs through its comprehensive suite of digital tools, strong suite of fintech partnerships and commitment to services. and custom solutions. Over the past year, Grasshopper has deployed a significant number of enterprise services with impressive momentum and balance sheet growth.

“We are very pleased with the support of this group of experienced investors,” said Mike Butler, CEO of Grasshopper. “Our strategic direction is set. Therefore, the new capital will further support our growth and strengthen our ability to provide our customers with cutting-edge technology and personalized digital banking solutions in the business and innovation economies.

Since Butler assumed leadership of Grasshopper in May 2021 and expanded his leadership team later that year, Grasshopper has:

  • Addition of three new business lines primarily supporting the SME market from a lending perspective (Commercial Real Estate, SBA Loans and Yacht Finance), while maintaining support from its Venture Banking division;
  • Added two new deposit collection business lines, which include Banking-as-a-Service (BaaS) and SMB Banking;
    • Launch of an innovative BaaS platform, including a recently announced partnership with Treasure Financial;
    • Development of a full suite of digital banking tools for SMEs, including a digital business checking account, rewards debit card, instant issue virtual debit cards and seamless payment options;
  • Partnered with industry-leading fintech companies to rebuild its entire technology platform, from core banking and API middleware, to front-end digital account opening, digital banking and fraud prevention systems. fraud, in order to provide a more reliable, flexible and secure banking experience for customers;
  • Increased its total headcount of employees by 82% (from June 30, 2021 to June 30, 2022).

The initial results of these strategic changes have been very positive, with 84% growth in total assets, 358% growth in loans and 192% growth in core deposits as of June 30, 2022 compared to the same period. in 2021.

Alongside the capital raise, Grasshopper continues to refine its board by welcoming Boris Gutin from GCP Capital Partners and Bradford Kopp. Additionally, effective July 27, 2022, CEO Mike Butler assumed the role of Chairman, succeeding John Flemming, who stepped down from that role but remains on the Board.

“It has been a pleasure to serve as president of Grasshopper for the past three years, helping to lead the bank from its inception through the more recent expansion of our vision,” said John Flemming. “Mike and the management team have executed our strategic plan as designed, and we have seen strong growth as a result. This fact, coupled with the capital increase, has positioned Grasshopper for success, which which makes this the perfect time for me to step down as Chairman while remaining a member of the Board of Directors.”

Mike Butler added, “We greatly appreciate John’s leadership, guidance and oversight in getting us to this point. John has served as President since the founding of Grasshopper and has been instrumental in shaping our success. I have looking forward to working with our board and team to ensure we capitalize on the opportunities that lie ahead.”

Keefe, Bruyette & Woods, A Stifel company, acted as lead financial advisor for the capital increase. Hogan Lovells US LLP acted as legal counsel.

About Grasshopper Bank

With total assets of over $500 million, Grasshopper is a customer-focused digital bank serving founders, their businesses, and the investors who support them in the innovation economy. Grasshopper replaces the traditional one-size-fits-all approach to banking with a suite of products and services tailored to specific industries and a passionate team of experts with deep expertise in their fields. Grasshopper’s banking solutions span small businesses, venture-backed businesses, banking platforms as a service (BaaS) and commercial APIs focused on fintech, SBA lending, commercial real estate lending and financing of yachts. Based in New York, the bank is a member of the Federal Deposit Insurance Corporation and is an equal housing and equal opportunity lender. For more information, visit the bank’s website at www.grasshopper.bank or follow on LinkedIn and Twitter.

Media Contact

Stephane Sumner
Caliber Business Advisors
[email protected]
845.489.0612

THE SOURCE: Grasshopper

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