Cash management fintech Primary has raised $3.5 million in Seed funding to help small business puts its capital to better use.
The round was round led by Carthona Capital, supported by local funds Macdoch Ventures, Archangel, AfterWork Ventures, and Ari Klinger’s No Brand, as well as Singapore’s Resolution Ventures.
Carthona partner Damian Fox will join Primary’s board as part of the round, which takes to the total raised to $4.75 million.
Primary, founded in 2022 by Ben Buckingham, helps startups and SMEs access low-risk, high-interest financial products from the likes of Morgan Stanley, Macquarie, and State Street Global Advisors, to improve the returns on their available cash.
Primary now has more than $150 million of funds under administration and works with 40 customers, including VC-backed startups such as Eucalyptus, Lyka, Vow, and Kismet.
Buckingham, who previously worked at Allens Linklaters, Mckinsey & Co., and ASX-listed regtech Identitii, said that during its closed beta, Primary helped its collectively earn more than $2 million in incremental interest, which has helped those extend their runway, hire additional staff, and invest in growth.
“Deposits from small and medium sized businesses make up a significant proportion of a business banks’ deposit volume,” he said.
“These deposits are being used to finance high-interest loans to other businesses, however depositors are receiving very little interest. One of the Big 4 business banks offers 0.25% – 1% interest on savings accounts, while charging over 10% on business loans.
“Business banks have become complacent, and take advantage of smaller businesses who have few options. Primary is here to change that, by making it seamless for smaller wholesale companies to access a range of institutional-grade yield products”.
Carthona’s Damian Fox recalls flying to San Fransisco the day after Silicon Valley Bank began collapsing in March 2023.
“This ‘black swan’ event underscored how relying on a single bank creates a critical point of failure for too many businesses,” he said.
“Primary offers sophisticated cash management strategies to SMEs, safeguarding their treasury while providing access to high-yield products – ensuring their idle cash works as hard as they do.”
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