Thought Machine gains unicorn status after US$200m series C
Thought Machine, a cloud-native core banking provider, has hit unicorn status after a new $200 million Series C funding round.
Founded in 2014 by former Google engineer Paul Taylor, Thought Machine says its software helps big banks move away from legacy IT infrastructure to a modern, cloud-based platform.
This round was led by Nyca Partners, a New York and San Francisco-based venture capital firm, with investment also coming from some of Thought Machine’s global tier-one banking clients – ING Ventures, JPMorgan Chase, and Standard Chartered Ventures.Existing investors Lloyds Banking Group, British Patient Capital, Eurazeo, SEB, Molten Ventures (formerly Draper Esprit), Backed, and IQ Capital have all participated in the round.
Expanding international reach and strengthening cloud-native banking
Thought Machine will be using the funding to continue developing and expanding Vault, a cloud-native platform that its b2b customers rely on to provide a range of retail banking services, from checking accounts, savings accounts, loans and credit cards to mortgages.
The firm intends to further develop Vault and its Universal Product Engine, which allows for unparalleled flexibility in product development and configuration. The company will expand its international reach, strengthening its five global offices and targeting new key markets to accelerate the adoption of cloud native core banking globally.
Paul Taylor, Chief Executive Officer and Founder, Thought Machine: “We are delighted to have earned the support of our new and existing investors as we continue to move the world’s leading banks into the cloud. We set out to eradicate legacy technology from the industry and ensure that all banks deployed on Vault can succeed and deliver on their ambitions. These new funds will accelerate the delivery of Vault into banks around the world who wish to implement their future vision of financial services.”
The startup’s Series C follows a period of accelerated growth, with Thought Machine noting it’s added 200+ employees since 2020 and relocating into a larger London HQ to accommodate its expanded headcount.
Hans Morris, Managing Partner, Nyca Partners: “Thought Machine is the leading technology among the new generation of cloud native core platforms, and as a result it has become the top choice for tier one banks looking to upgrade their core architecture. These institutions tell us that Thought Machine’s engineering approach is unrivalled; Vault is highly configurable, flexible, scalable, and specifically designed for the complex environment and requirements of tier one banks. Investing in Thought Machine is an investment in the future of banking and we are very energised to be working with them as they build a new standard for core banking technology.”