The bank formerly known as Hatch, previously called the OnLine Bank for Small and Mid-Sized Businesses (OLB), announced today that it has raised a $58 million Series B in only seven months after raising its Series A.
Valar Ventures was the lead investor, with participation from Kleiner Perkins; Foundation Capital; Jim Breyer, the creator of Breyer Capital; Michael Ovitz, founder of Creative Artists Agency; Ryan Petersen, founder of Flexport; and Kevin Hartz, creator of Eventbrite.
To get a more thorough look at Nearside, take a look at its Series A announcement in April 2021, when the business first opened to the public. After Square purchased Framed Data, Thomson Nguyen became an entrepreneur-in-residence at Kleiner Perkins.
He discovered that many small business owners don’t have enough cash flow to keep legitimate business checking accounts without spending hundreds of dollars each year on overdraft fees. ”
On-Ledger On the other side, Nearside’s business checking accounts come with no monthly, overdraft, or ATM expenses, and it claims to be the first in the SMB internet banking market with a universal 1% cashback program.
It also recently debuted Premium Cashback Rewards, which give up to 5 percent back at companies like Amazon, Walmart, Shopify, Squarespace, and Zero.
Customer numbers are yet unknown, although Nguyen claims that the user base has increased by 800% since its Series A announcement.
Because we’ve built our onboarding, payments, and serving infrastructure in-house, Nearside is able to give its worldwide 1% cashback program because we’re able to cut down on the number of vendors we work with and retain more of the interchange revenue.”
“We can then pass on a larger chunk of this interchange revenue back to our customers in the form of Universal Cashback.”
Nearside CEO Duong Tran Nguyen said that the firm wasn’t looking to raise money any time soon after its previous fundraising announcement, but “this Series B ended up being very opportunistic and allows us to build additional products to help our individual and small business customers start and grow,” especially as more SMBs began to return as the COVID-19 pandemic gradually dissipates.
The firm’s name was changed to Nearside “because we wanted to choose a name that connects with our consumers at all phases of their business development—from the individual freelancer to incorporated LLC owner and beyond,” he explained.
Sheer Faces, an eyelash extension and brow shaping boutique in East Pointe, Michigan owned by LaShondra White, isn’t a particular industry. It serves all types of businesses, including incorporated small enterprises like Sheer Faces. Its clients include independent contractors, solo entrepreneurs, and those who have yet to launch their own firm, according to the company.
“A trend I find really interesting is that the line between a business and an individual is getting blurrier as people are starting businesses whilst transitioning out of their current job,” Nguyen added. “We believe that during this crucial transition period, individuals are looking for easy and free business tools and checking accounts with debit cards that save them as much money as possible.”
In 2019, Nearside’s product roadmap includes the addition of a Term Loan product, which is currently in limited beta, and Sprout, which will enable SMB owners to expand their businesses through their Nearside Dashboards.
According to a press release about the investment, Valar Ventures general partner James Fitzgerald remarked, “We couldn’t be more excited to support [Nearside] as they democratize access to banking and financial services for a new breed of entrepreneurs. They’re expanding the definition of small businesses beyond brick and mortar stores to include freelancers, gigsters, and the self-employed.
Their mission to jumpstart entrepreneurship in the U.S. is more important now than ever before, and we are thrilled to be part of the journey.”
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