Grasshopper, a digital bank serving small businesses, including startups, has raised an additional $30.4 million. This brings the total raised to date to $160 million. Grasshopper was approved by the Office of the Comptroller of the Currency for a De Novo charter in May 2019.
The equity financing was said the majority of the money was provided by existing investors, including Patriot Financial Partners, Endeavour Capital Advisors, FJ Capital Management, and Carpenter & Company. Grasshopper said that it has also attracted a new investor, GCP Capital Partners.
Mike Butler, CEO of Grasshopper, said they are very pleased by the support of investors:
“Our strategic direction is set. Therefore, the new capital will further support our growth and solidify our ability to provide clients with leading-edge technology and personalized digital banking solutions across the business and innovation economies.”
Butler was previously CEO of Radius Bank, acquired by LendingClub, and before that at KeyBank in Cleveland. He joined Grasshopper in May 2021 during a “relaunch” of the Fintech. At that time, Grasshopper announced that it had engaged in partnerships with a number of Fintechs, including FIS, Treasury Prime, Narmi, Alloy, Hummingbird, and Autobooks to provide a “best-in-class banking experience for its clients across all lines of business.”
Grasshopper reports over $500 million in assets providing services to smaller firms as well as a Banking as a Service (BaaS) offering and a commercial banking API. Grasshopper highlights services like SBA lending, commercial real estate and yacht financing.
Alongside the funding, Boris Gutin from GCP Capital Partners and Bradford Kopp will be joining the board of directors.. Additionally, effective July 27, 2022, Butler assumed the role of chairman, succeeding John Flemming, who stepped down from this role but remains on the board.
Fleming said it had been a pleasure to street the bank from launch to its recent expansion:
“Mike and the executive team have executed our strategic plan as designed, and we’ve seen strong growth as a result. That fact, coupled with the capital raise, has positioned Grasshopper for success, making this an optimal time for me to step aside as Chairman while remaining on the board.”
Grasshopper believes that advancements in digital banking and digital solutions are the future and it is well positioned to take advantage of this transition.