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Peter Thiel's backing is often a seal of approval in the tech world, and when his venture capital firm, Valar Ventures, throws its weight behind a startup, it's worth taking note. Berlin-based fintech Monite is feeling that validation today as it announces a significant boost to its seed funding, securing an additional $6 million. With this injection, its seed round now reaches a formidable $16 million, with Valar Ventures doubling down on its support and existing investor Third Prime reaffirming its confidence in the company.
But why all the fuss? Well, Monite is tackling a longstanding issue in one of the world's largest economies: the persistence of paper-based transactions, particularly in the B2B sector. Despite the US's technological prowess, checks still reign supreme in many financial transactions, accounting for a substantial portion of the $27 trillion B2B transaction volume in 2022.
Enter Monite, with a mission to revolutionize how B2B transactions are conducted, particularly in America. Founded in 2020, the company has already made significant strides, securing €1.1 million in pre-seed funding in early 2021. Its approach is refreshingly simple yet effective: leveraging APIs and SDKs to embed financial workflows seamlessly into existing platforms, from banks to payment providers to SaaS companies.
What sets Monite apart is its speed and cost-effectiveness. Traditional in-house solutions can take years to develop and cost millions, but Monite promises a new way of working in just four to five weeks, at a fraction of the cost. With a growing client base across the EU, US, and beyond, Monite's latest funding will fuel its expansion efforts, particularly in the US market.
Valar Ventures, led by Peter Thiel, was drawn to Monite's impressive growth metrics, including a 10x increase in monthly recurring revenue and a fivefold year-over-year growth rate. James Fitzgerald, founding partner at Valar Ventures, underscores Monite's unique value proposition in addressing the underserved SMB market, particularly in finance automation.
With Monite's innovative approach and strong backing, the future looks bright for transforming B2B transactions from paper-based relics to streamlined digital workflows.
