Clutch announced the completion of a Series B funding round at $65 million to transform how credit unions deliver products and services to their members and communities. Alkeon Capital Management led the Series B funding round with participation from Andreessen Horowitz, TruStage Ventures, and Peterson Partners.
This new funding round will support Clutch’s ambitious growth plans and product innovation including investments in AI and expanded platform capabilities to help credit unions compete more effectively for today’s digital-first consumers.
Clutch, which develops omnichannel digital consumer banking origination software for credit unions, was founded in 2020 by MIT and Stanford graduates Christopher Coleman and Nicholas Hinrichsen, who had sold their previous company to Carvana. And Clutch has seen tremendous success due to its commitment to the credit union movement and its mission of helping credit unions become the obvious choice for every consumer’s financial need.
Clutch onboarded over 135 credit union clients across all states and sizes, including six of the top ten largest institutions in the country, each utilizing Clutch’s unified digital origination platform to serve their members’ consumer loan and deposit account needs.
KEY QUOTES:
“As the fastest growing, most widely-adopted, and most holistic modern digital onboarding solution in the credit union industry, Clutch has quickly transformed from a young startup to a mission-critical software provider for our credit union clients. With now more than 200 months of cash runway, Clutch is uniquely positioned to be the credit unions’ one-stop-shop for all its consumer-facing technology needs.”
“Deeply understanding the nuances of the credit union’s business and technology helps us solve the right problems, the right way. We are all-in on credit unions because generic technologies that serve banks and FinTechs alike fail to promote the unique way that credit unions do business – it’s the uniqueness of credit unions and their mission that helps deliver exceptional value to members.”
- CEO and Co-founder Nicholas Hinrichsen
“We strongly believe that we can best serve the credit union movement by partnering with the existing technology providers and thereby leveraging the investments our credit union clients have already made.”
- Chief Product Officer and Co-founder Chris Coleman
“No credit union leader wakes up in the morning wanting to kick off a 2-year-long LOS conversion. Replacing your LOS will cost you 2 years – 2 lost years with no real progress. Real progress happens when you work with companies like Clutch that enable you to serve your members like a FinTech while getting the most out of your existing systems.”
- Head of Product Tamanna Kottwani
“We’re not competing with other credit unions or banks. We’re up against Uber, Amazon, and Netflix – tech giants that have perfected consumer experiences and set the standard for instant gratification.”
- Darlene Johnson, EVP & Chief Strategy and Transformation Officer at Suncoast Credit Union
“The not-for-profits are poised for a season of rapid growth. With their member-centric service charters, focus on helping consumers make financial progress and lower cost of capital, credit unions can and should be the primary financial service provider for their members – current and future. And that’s doubly true in today’s decreasing rate environment. Banks and FinTechs already cannot match the combination of friendly service and attractive interest rates that credit unions offer. Clutch takes that edge to the next level by getting credit unions to digital parity, giving credit unions an unfair competitive advantage.”
- Mark McLaughlin from Alkeon Capital
