NEW YORK, NY – May 9, 2023 – Grasshopper, the client-first digital bank built for the business and innovation economy, and Sydecar, a frictionless deal execution platform for venture investors, today announced a partnership to provide Sydecar’s venture investing clients with access to digital banking products through Grasshopper’s Banking-as-a-Service (BaaS) platform. The partnership fulfills both organizations’ goal of providing a tech-forward, best-in-class customer experience to venture capital investors.
Grasshopper has extensive expertise working with venture capital firms and funds, which provides unique benefits to the venture investors who trust Sydecar to create their investment vehicles, such as special purpose vehicles or venture capital funds. Grasshopper’s APIs are powered by Treasury Prime, an embedded banking software platform. This integration bolsters Sydecar’s seamless investing experience by allowing these clients to establish investment vehicles, such as special purpose vehicles (SPVs), through Grasshopper’s integrated bank accounts in minutes. The partnership is an example of how forward thinking banks and fintechs can leverage technology to provide an exceptional banking experience.
“Venture investors need a reliable and secure banking experience and our partnership with Sydecar delivers just that,” said Lauren McCollom, Director of BaaS at Grasshopper. “By leveraging exceptional technology that provides transparency and access to critical resources, we are delivering value to venture investors who need a solution amid a changing regulatory environment and economic uncertainty. Sydecar and Grasshopper are making it easier to manage their finances and conduct business that ultimately benefits the entire innovation economy.”
Grasshopper helps to drive key capabilities for Sydecar. Within Sydecar, investors are able to open a funding account in minutes, ensuring deals close on time and companies receive funds in a timely manner. Grasshopper’s ability to support both international and domestic funding and create individual hashed bank accounts for reconciliation and refunds powers smooth and swift transactions. In an industry where speed matters and mistakes are costly, Sydecar and Grasshopper are setting a new standard for reliability and efficiency.
“Transparency, trust, and reliability are hallmarks of superior financial products and core values at Sydecar. We recognize the importance of working with a banking partner who shares these values.” said Nik Talreja, Founder and CEO of Sydecar. “Sydecar chose to work with Grasshopper Bank because, in addition to being client-first and tech-forward, they have a strong commitment to risk management. As a technology-forward bank, Grasshopper enables our product to function seamlessly, removing the chance of manual errors from our funds-flow.”
About Grasshopper Bank
With total assets of over $700 million, Grasshopper is a client-first digital bank serving the business and 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 cover small business, venture-backed companies, fintech-focused Banking-as-a-Service (BaaS) and commercial API banking platforms, SBA lending, commercial real estate lending, and yacht financing. Headquartered in New York City, the bank is a member of the Federal Deposit Insurance Corporation and is an Equal Housing/Equal Opportunity Lender. For more information, visit the bank’s website at www.grasshopper.bank or follow on LinkedIn and Twitter.
Sydecar is a frictionless deal execution platform for venture investors. Their platform handles back-office operations, automating banking, compliance, contracts, tax, and reporting so that investors can focus on making deals and building relationships. Founded in 2021, Sydecar is on a mission to bring more efficiency to private markets by standardizing how investment vehicles are created and executed. In bringing a tech-forward approach to the private markets, they are working to reduce inefficiencies, delay, and human-error in investing and make private investing more accessible. To learn more, visit https://www.sydecar.io/ or check out their LinkedIn and Twitter.