Summary:
Highnote raised $90 million in Series B funding, valuing it over $750 million.
New product launch allows businesses to accept online payments, enhancing their service offering.
CEO John MacIlwaine brings 25 years of fintech experience, previously working at Visa and Braintree.
Highnote reported $81 million in annualized gross revenue with over two dozen clients.
The startup faces competition from Marqeta and Lithic, amid increasing regulatory scrutiny.
Highnote's Impressive Growth
Highnote, a San Francisco-based payments startup, has successfully raised $90 million in Series B funding, which has pushed its valuation to over $750 million. The funding round was led by Adams Street Partners, with contributions from Oak HC/FT, Costanoa, Westcap, and Pinegrove Capital Partners.
John Macllwaine (CEO) and Kin Kee (co-founder and CTO) of Highnote. Provided by Highnote
Innovative Product Offerings
Founded in 2020, Highnote’s initial product was card-issuing software, allowing businesses to quickly issue customizable debit, credit, virtual, charge, or loyalty cards. With the recent funding, Highnote aims to enhance its offerings, launching a new product that enables businesses to accept online credit and debit payments (known as acquiring). This move allows Highnote to manage both sides of card transactions, a strategy CEO John MacIlwaine envisioned from the start.
Leadership with Experience
Before founding Highnote, MacIlwaine spent 25 years in the financial services and fintech industry, including roles at Visa and Braintree. His experiences highlighted the need for a unified platform in payment processing, which Highnote aims to provide, unlike many competitors that focus on just one aspect of transactions.
Financial Performance and Customer Base
By the end of last year, Highnote reported $81 million in annualized gross revenue, although it is not yet profitable. The startup has over two dozen clients, including Netevia, which utilizes Highnote for payment processing and acquiring services.
Competitive Landscape
Highnote faces stiff competition from Marqeta, which has experienced fluctuations in market value, and Lithic. Regulatory scrutiny has also increased for banking-as-a-service companies, posing challenges to the entire industry. However, MacIlwaine remains confident in Highnote’s robust infrastructure and ability to navigate these regulatory waters.
Conclusion
Highnote is strategically positioned to capitalize on its recent funding, expanding its product offerings while addressing the growing need for integrated payment solutions in a complex market landscape.
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