New funding & executive additions will support the development of new services, APIs, and payment rails that enable embedded and real-time B2B payments
Reserve Trust, the first fintech trust company with a Federal Reserve master account, today announced a $30.5 million Series A investment, led by QED Investors with participation from FinTech Collective and Ardent Venture Partners. The round, including $17.9M in secondary shares, comes in addition to a prior $5M seed round raised in October 2019. In conjunction with the fundraise, Reserve Trust also announced that Dave Wright has been named CEO and Dave Cahill has joined the company as Chief Operating Officer. This move reunites two tech entrepreneurs that have collectively been involved in founding, building, and scaling multiple startups with four successful exits between them.
“While banks will always have an important role to play in B2B commerce, they have struggled to deliver the technology and services that businesses need to fully digitize domestic and international payments”
Unconstrained by legacy banking systems, Reserve Trust provides B2B payments services that financial institutions and fintech’s have previously only been able to obtain from correspondent and sponsor banks. Reserve Trust partners with businesses that seek to embed domestic and cross-border B2B payments, bypassing traditional banks and offering direct access to key high-value payment rails. Reserve Trust’s unique trust structure allows customers to store funds in custody accounts that are backed by Reserve Trust’s Federal Reserve master account, and to transfer funds via ACH, FedWire, SWIFT, and other emerging payment systems.
The reunification of CEO Dave Wright and COO Dave Cahill come at a critical time for Reserve Trust as the company embarks on its next phase of growth. The pair was last together on the executive team at SolidFire, a cloud storage company founded by Wright and then sold to NetApp in 2016. This latest capital infusion will be used to accelerate investments in the team and technology required to deliver innovative new services, APIs, and payment rails that support embedded and real-time payments for any fintech service or software platform globally.
“Despite all the excitement around digital payments and infrastructure, there is still no fintech that can offer direct integration with the U.S. payment system,” said QED Investors Partner Amias Gerety. “With Reserve Trust, we are creating foundational infrastructure to hold and move payments globally and at scale. Dave Wright and the team bring a track record of immense value creation and a history of being at the forefront of infrastructure innovation that is essential to unlocking capabilities for innovators in B2B payments.”
“While banks will always have an important role to play in B2B commerce, they have struggled to deliver the technology and services that businesses need to fully digitize domestic and international payments,” said Reserve Trust CEO Dave Wright. “Reserve Trust’s unique combination of a trust charter with a Federal Reserve master account allows us to create foundational payment and custody services delivered via APIs to enable innovation across the entire fintech ecosystem. The funding announced today, including leading investors across the fintech ecosystem, will go a long way to helping us continue to execute on this vision.”
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As part of the investment, QED’s Matt Burton and Ardent’s Phil Bronner have joined the Reserve Trust board. Additional investors in the round include Flywire CEO, Mike Massaro and Quovo Founder and CEO, Lowell Putnam.
