Thought Machine’s series B round led by European technology investor Draper Esprit will drive global expansion and banking transformation mission
LONDON–(BUSINESS WIRE)–Thought Machine, the cloud native core banking technology firm, has raised $83 million to drive the next phase of its growth. The funding will strengthen Thought Machine’s mission to transform banking by deploying modern cloud-native systems and continue investment in its core engineering capability. The funding will also be used to drive Thought Machine’s global expansion into Asia Pacific.
Founded in 2014 by entrepreneur and former Google engineer, Paul Taylor, Thought Machine has built a core banking solution entirely in the cloud. This solution, Vault, is enabling established and challenger banks to compete in the cloud-native era, and deliver the highest levels of scalability, resilience and security. Thought Machine counts Lloyds Banking Group, Standard Chartered, SEB and Atom Bank as clients.
Last year, Thought Machine announced a major expansion in Asia Pacific with the opening of Thought Machine Singapore, which covers sales and marketing, and a dedicated professional services function to oversee the delivery of successful deployments of Vault into banks in the region. Thought Machine also plans to launch in Australia and Japan. Later in 2020, Thought Machine will launch in North America.
Thought Machine headquarters in London has been undergoing rapid growth with the team growing from 50 in 2018 to more than 300 today. All of Thought Machine’s existing investors (Lloyds Banking Group, IQ Capital, Backed and Playfair Capital) have participated in the round, with IQ Capital contributing £15m from their new scale up fund.
Draper Esprit is a leading venture capital firm investing in and developing high growth digital technology businesses. The group has invested in a range of innovative fintech businesses from Revolut and N26 to TransferWise and Freetrade.
Paul Taylor, Chief Executive Officer and Founder of Thought Machine, comments: “For the past six years, our purpose has been to offer banks a next-generation solution to liberate them from legacy systems which plague the financial services industry.
This funding round comes at a pivotal stage in the company’s growth. Thought Machine’s revenues are very healthy, as we see cloud native banking become the most common desired target architecture for the world’s banks. The customer demand is huge, and this investment allows us to grow rapidly enough to serve all our target markets. As well as international expansion, we will put further investment into our core technology, ensuring that banks will always have the best possible cloud native platform, and allow them to keep up with technology breakthroughs in the future which bring agility, security, resilience and good economics.”
Vinoth Jayakumar, Investment Director, Draper Esprit, comments: “We are delighted to be partnering with Thought Machine in this phase of their growth. Our investments in Revolut and N26 demonstrate how banking is undergoing a once in a generation transformation in the technology it uses and the benefit it confers to the customers of the bank. We continue to invest in our thesis of the technology layer that forms the backbone of banking.
Thought Machine stands out by way of the strength of its engineering capability, and is unique in being the only company in the banking technology space that has developed a platform capable of hosting and migrating international Tier 1 banks. This allows innovative banks to expand beyond digital retail propositions to being able to run every function and type of financial transaction in the cloud.”
Max Bautin, Founding Partner of IQ Capital, comments: “We first backed Thought Machine at seed stage in 2016 and have seen it grow from a startup to a 300-person strong global scaleup with a global customer base and potential to become one of the most valuable European fintech companies. I am delighted to continue to support Paul and the team on this journey, with an additional £15m investment from our £100m Growth Fund, aimed at our venture portfolio outperformers.”
— END —
About Thought Machine
Thought Machine was founded in 2014 with a mission to enable banks to deploy modern systems and move away from the legacy IT platforms that plague the banking industry. We do this through our cloud native core banking platform, Vault. This next generation system has been written from scratch as an entirely cloud native platform. It does not contain a single line of code which is legacy, or pre-cloud.
Founded by entrepreneur Paul Taylor, Thought Machine’s customers include Lloyds Banking Group, SEB, Standard Chartered and Atom Bank. We are currently a team of more than 300 people spread across offices in London and Singapore and have raised more than £18m in funding from IQ Capital, Playfair Capital and Backed. For more information visit www.thoughtmachine.net.
About Draper Esprit
Draper Esprit is one of the most active venture capital firms in Europe, developing and investing in disruptive, high growth technology companies. We believe the best entrepreneurs in Europe are capable of building the global businesses of the future. We fuel their growth with long-term capital, access to international networks and decades of experience building businesses. Currently, Draper Esprit is a shareholder in a diverse portfolio of companies including Trustpilot, UiPath, Transferwise, and Graphcore. For more information please visit: www.draperesprit.com
About IQ Capital
IQ Capital is a venture capital firm, based in Cambridge and London. With £300m assets under management, it invests in ‘deep-tech’ across sectors including machine learning, AI, robotics, and advanced engineering and materials, and data-focused propositions based on disruptive algorithms. All of the firm’s portfolio companies are capable of dominating their respective markets on a global scale. Initial investments range from £300k to £5m, with capacity for follow-on investment up to £30m.
The IQ Capital team has achieved over 20 exits to date, to companies including Oracle, Google, Apple, Huawei, and Facebook, and several IPOs. IQ Capital has led 28 investments over the last three years. The firm is currently investing at seed and Series A stage from its third venture fund.
For further information contact:
Head of Communications, Thought Machine