Several investors in Neat’s Series A returned to invest again
Hong Kong-based fintech Neat has raised US$4 million as a Series A extension round, according to a press statement released by the company today.
The round was funded by existing backers MassMutual Ventures, the investment arm of Massachusetts Mutual Life Insurance Company, Pacific Century Group, a private investment group headquartered in Hong Kong, Linear Capital, a China-based venture capital firm, and angel investor Robby Hilkowitz, the statement noted.
New investor Vectr Fintech, a Hong Kong-based early-stage venture firm, also pitched in, the statement noted.
Neat is a B2B banking alternative that provides online company incorporation services and digital multi-currency wallets to cross-border small and medium enterprises (SMEs). It also offers corporate expense cards and international remittances. The company is mainly focuses on SME trade taking place between Europe and Asia.
The Series A extension round follows up on the company’s $11 million Series A financing that it closed in April this year. The financing was led by Pacific Century Group, with participation from MassMutual Ventures and Linear Capital, in addition to Visa, Singapore-based Dymon Asia Ventures, and Beijing-based Sagamore Investments.
As a part of the Series A deal, Visa will also be providing cross-border credit cards for SMEs in partnership with Neat, according to an earlier announcement by the company.
Funds from the Series A round are focused towards Neat’s international expansion, including setting up base in Western Europe and customer acquisition in Southeast Asia, Neat’s General Manager for Europe Iris ten Teije had earlier told Jumpstart.
Commenting on the Series A extension round, Managing Partner at Vectr Fintech Partners, Mark Munoz said in the statement that “the new capital injection will allow Neat to double down on their customer acquisition efforts to serve more SMEs looking for a better way to manage their business finances.”
“Neat has shown great resilience and momentum throughout the current pandemic,” he also said. “The demand for online alternatives to banks has gone up, and the team at Neat has proven their ability to capture this opportunity while maintaining strong unit economics.”
Neat noted in the statement that company incorporations have not been adversely impacted by the COVID-19 pandemic, and that these companies are now looking to take up digital routes to incorporation.
The statement noted that in Hong Kong, for instance, over 27000 companies were incorporated in Q2 2020, while the U.K. saw over 176,000 such incorporations in the same period.
“Some of the world’s most successful companies were born during or just after the financial crisis of 2008, think of WhatsApp and Uber,” Co-founder and CEO of Neat David Rosa said in the statement.
“The majority of businesses founded during COVID-19 will have a digital-first mindset, which means they will have an opportunity to start trading globally from day one. We’re excited to be supporting this new wave of international entrepreneurs,” he added.
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