Here’s the 12-page pitch deck a startup helping fintechs manage their data used to score a $4.3 million seed from investors like Redpoint Ventures and Y Combinator
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- Proper Finance is a fintech that provides infrastructure for other fintechs to manage data.
- The startup was founded by two former employees of Marqeta, a payments fintech.
- Here’s the deck it used to raise $4.3 million from investors Redpoint Ventures and Y-Combinator.
As the flow of data becomes evermore crucial for fintechs, from the strappy startup to the established powerhouse, a thorny issue in the back office is becoming increasingly complex.
Even though fintechs are known for their sleek front ends, the back end is often quite the opposite. Behind that streamlined interface can be a mosaic of different partner integrations — be it with banks, payments players and networks, or software vendors — with a channel of data running between them.
Two people who know that better than the average are Kyle Maloney and Travis Gibson, two former employees of Marqeta, a fintech that provides other fintechs with payments processing and card issuance.
“Take an established neobank for example. They’ll likely have one or two card issuers, two to three bank partners, ACH processing for direct deposits and payouts, mobile check deposits, peer-to-peer payments, and lending,” Gibson told Insider.
At Marqeta, a growing portion of Gibson and Maloney’s time was spent stitching together these back-end providers.
“We were constantly tweaking and refining our underlying financial-data infrastructure,” Maloney said. When they couldn’t find a product in the market to manage under-the-hood financial-data operations, they decided to build it instead.
A few months later, Proper Finance was born. The startup helps other fintechs keep track of transaction data moved between third-party and in-house systems with its platform that acts as ledger. The system tracks money movement to external parties to confirm funds have been processed and matches transaction data across different sources to make sure it is consistent across disparate systems.
The startup raised a $4.3 million seed round on June 8 led by Redpoint Ventures with participation Y Combinator, BoxGroup, and Mischief, among others.
Since officially launching in 2021, Maloney, Proper’s CEO, and Gibson, its CTO, have found that back-end data integrations are a ubiquitous thorn in many fintechs’ sides.
“For any company that moves money, financial accuracy and regulatory compliance are a must. But financial data exists across many sources, payment providers, and systems,” Maloney said. “Today, teams spend dozens to hundreds of hours per month pulling together this data and reconciling it across their services to ensure that money has moved correctly, typically using spreadsheets and complex queries,” he added.
And while the fintech industry, compared to the legacy banking system, is new, it still relies on those banking rails and its accounting methods. “This doesn’t always connect with Silicon Valley’s ‘move fast and break things’ ethos,” Maloney said.
With Proper Finance, Maloney and Gibson are looking to give back-office operations teams a lift with their single system that tracks and connects data, and processes the payment data across each provider.