Cross River Bank raised $28 million from a number of investors in Silicon Valley. Investors included Battery Ventures, Andreessen Horowitz, and Ribbit Capital, which have invested in fintech startups. In addition to the deal, Battery General Partner Scott Tobin will become a member of Cross River’s Board of Directors.
According to a joint Battery Ventures and Cross River press release,
“The funding will enable the already-profitable bank to more aggressively execute its business strategy, including expanding its technology and product-development teams; accelerating business-development efforts; continuing to invest in its compliance infrastructure; and launching new business lines to support the increasing number of companies using new technologies to change the way consumers and businesses borrow, save and transact globally.”
Founder, Chief Executive Officer and Chairman of the bank Gilles Gade said,
“This new funding will strengthen our capital base to help us execute our vision more rapidly and continue our track record of success. We are particularly excited to work with Battery, which has a history of investing in innovative financial-technology companies.”
Prior to Cross River Bank, Gade was at Bear Sterns & Company, Barclays Capital, Chela Technology Partners, and First Meridian Mortgage.
Last year, the small-lending community bank with one branch in New Jersey distributed $2.4 billion in loans to companies and partnered with Marlette Funding on a joint $100 million securitization transaction for the marketplace lending sector. The bank notes that it works with more than 15 online lenders.