NEW YORK, NY / ACCESSWIRE / August 1, 2022 / Grasshopper today announced the completion of a $30.4 million capital raise, bringing the digital commercial bank’s total funding to date to $160 million. While the majority of this funding came from existing investors, including Patriot Financial Partners, Endeavour Capital Advisors, FJ Capital Management and Carpenter & Company, Grasshopper has also attracted a new noteworthy investor in GCP Capital Partners.
The advancement in digital banking offerings is clear: digital solutions are now key priorities for millions of businesses as they consider banking options. Grasshopper is well-positioned to address the increase in demand for banking services among the millions of small and medium-sized businesses and entrepreneurs with its full suite of digital tools, robust array of fintech partnerships, and commitment to personalized service and solutions. Over the past year, Grasshopper has deployed a significant number of business services with impressive momentum and balance sheet growth.
“We are very pleased with the support of this experienced group of investors,” said Mike Butler, CEO of Grasshopper. “Our strategic direction is set. Therefore, the new capital will further support our growth and solidify our ability to provide clients with leading-edge technology and personalized digital banking solutions across the business and innovation economies.”
Since Butler took the helm as CEO of Grasshopper in May 2021 and expanded its management team later that year, Grasshopper has:
- Added three new business lines predominantly supporting the SMB market from a lending perspective (Commercial Real Estate, SBA Lending, and Yacht Financing), while maintaining support of its Venture Banking division;
- Added two new deposit gathering business lines, which include Banking-as-a-Service (BaaS) and SMB Banking;
- Launched an innovative BaaS platform, including a recently announced partnership with Treasure Financial;
- Developed a full suite of digital banking tools for SMBs, including a digital business checking account, rewards debit card, instant-issue virtual debit cards, and seamless payment options;
- Partnered with industry-leading fintech companies to rebuild its entire technology platform, from the core banking system and API middleware, to front-end digital account opening, digital banking and fraud prevention systems, to provide a more reliable, flexible and secure banking experience for clients;
- Grown its total employee headcount by 82% (from June 30, 2021 to June 30, 2022).
Early results of these strategic changes have been very positive, with an 84% growth in total assets, 358% growth in loans, and 192% growth in core deposits at June 30, 2022 compared to the same period in 2021.
In conjunction with the capital raise, Grasshopper continues to refine its board of directors by welcoming Boris Gutin from GCP Capital Partners and Bradford Kopp. Additionally, effective July 27, 2022, CEO Mike Butler assumed the role of chairman, succeeding John Flemming, who stepped down from this role but remains on the board.
“It has been a pleasure serving as Grasshopper’s Chairman over the past three years, helping to steer the bank from the time of its launch to the more recent expansion of our vision,” said John Flemming. “Mike and the executive team have executed our strategic plan as designed, and we’ve seen strong growth as a result. That fact, coupled with the capital raise, has positioned Grasshopper for success, making this an optimal time for me to step aside as Chairman while remaining on the board.”
Mike Butler added, “We are tremendously appreciative of John’s leadership, counsel, and oversight to get us to this point. John has served as Chairman since Grasshopper’s founding, and has played an integral role in setting us up for success. I look forward to working with our board and team to ensure we capitalize on the opportunities that lie ahead.”
Keefe, Bruyette & Woods, A Stifel Company, acted as lead financial advisor for the capital raise. Hogan Lovells US LLP served as legal counsel.
About Grasshopper Bank
With total assets of over $500 million, Grasshopper is a client-first digital bank serving founders, their companies, and the investors supporting them across the innovation economy. Grasshopper replaces the traditional one-size-fits-all approach to banking with a suite of products and services tailored to specific industries, and a passionate team of experts with deep expertise in their fields. Grasshopper’s banking solutions cover small business, venture-backed companies, fintech-focused Banking-as-a-Service (BaaS) and commercial API banking platforms, SBA lending, commercial real estate lending, and yacht financing. Headquartered in New York City, the bank is a member of the Federal Deposit Insurance Corporation and is an Equal Housing/Equal Opportunity Lender. For more information, visit the bank’s website at www.grasshopper.bank or follow on LinkedIn and Twitter.