Thread Bancorp, the parent company of Thread Bank, announced it has closed a $30.5 million funding round to accelerate development of its Embedded Banking strategy and expand what it describes as a “digital branch” model delivered through partner brands and vertical SaaS platforms.
The round included an initial $27.6 million raise and a $2.9 million extension. Portage Ventures led the financing, with participation from Rockmont Partners and other strategic investors, the company said.
Thread said the capital will support continued growth of its embedded approach, which the company says has reshaped its business since its founding in 2021, evolving from a traditional community institution into a technology forward community banking platform with a nationwide customer base. The company’s model is designed to place banking services inside the products and workflows where customers already manage their financial lives, offering embedded “digital branches” through small business and consumer brands as well as software platforms serving specific industries.
The announcement follows what Thread characterized as a period of significant growth. The bank now manages more than $2 billion in partner deposits and, according to the company, increased Embedded Deposits by more than 3 times from January 2024 through October 2025, representing approximately 75% annualized growth.
Over the past year, Thread also highlighted several operating initiatives intended to support scale, including selecting Finxact as its new core banking platform and working with LoanPro to modernize lending operations. The company added that it opened a new corporate headquarters in Nashville, Tennessee, in April.
With this round, Thread said it has now raised more than $100 million in Tier 1 capital across multiple rounds. The company said it plans to use the new funding to broaden and scale its Embedded Banking offerings, to continue its growth trajectory, and serve as a model for other community banks pursuing technology-enabled expansion.
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“From the outset, our mission at Thread has been to use technology to meet customers where they live their financial lives and conduct their financial business, challenging traditional methods and paradigms for delivering banking products and services,” said Chris Black, CEO, President, and member of the Board of Directors of Thread. “This funding round, backed by seasoned financial technology and banking investors, serves as a resounding vote of confidence in our team, embedded approach, and customer-first vision for the future of banking.”
Chris Black, CEO, President, and member of the Board of Directors of Thread
