Upward Secures $8 Million Seed Funding to Enhance Financial Access

Seattle-based fintech startup Upward has successfully raised $8 million in seed funding, co-led by Dundee Venture Capital and Breakwater Ventures. This funding round increases Upward’s total financial backing to $12 million, marking a significant milestone in the company’s mission to provide banking infrastructure as a service to underserved business segments.

As part of the rapidly growing integrated finance sector, Upward is tapping into a market valued at $185 billion, according to the Boston Consulting Group. This landscape allows businesses outside traditional finance to offer essential products like banking, payments, and cards directly through their platforms.

Upward distinguishes itself from competitors such as Unit, Synctera, and Bond by focusing on often-excluded communities, including creators, gig workers, and small business operators. Co-founder and COO Danielle Hill emphasizes the importance of serving these “hard to serve” users as central to Upward’s mission.

“We’re not trying to be the next neobank; we’re powering hundreds of them,” Hill stated. With their innovative infrastructure, partners can launch financial products in weeks rather than years, significantly reducing the barriers to entry for new offerings.

Hill’s Journey: From Small Town to Fintech Innovator

Danielle Hill’s rise to co-founding a venture-backed fintech company is far from conventional. Hailing from Puyallup, Washington, she began her career in insurance before making her way to significant roles at Amazon and Remitly. At Remitly, Hill identified the challenges non-traditional users face and co-founded Upward in 2021 to streamline the process of launching integrated financial products.

Under her leadership, Upward has seen remarkable growth, achieving a user base increase of 21 times and an annual revenue run rate of over $2 million. This momentum positions Upward as a strong contender in the competitive fintech landscape, processing more than $10 million in monthly payment volume across 15 partners that include companies like Solo and TipHaus.

Rethinking Financial Infrastructure

While many traditional banking-as-a-service platforms bundle services from various providers, Upward has chosen a vertically integrated model. This approach simplifies implementation, combining banking, payments, compliance, and accounting into one cohesive system. A partnership with Mastercard allows Upward’s clients to launch Mastercard-branded card programs without managing multiple relationships.

“At Remitly, we often had to build everything ourselves because there was no off-the-shelf solution that met our users’ needs,” Hill explained. Recognizing that many startups lack the resources to build from scratch is what inspired them to create Upward.

Advice for Aspiring Fintech Entrepreneurs

Hill candidly discusses the fundraising challenges within fintech. “You’ll hear 99 no’s for every yes,” she said, highlighting the necessity of having a trustworthy co-founder who shares the vision. She advises founders to carefully consider their financing model and emphasizes the crucial role of networks in determining transaction flows.

“Relationships open doors,” she added. Hill’s background, lacking a prestigious degree or metropolitan roots, taught her that perseverance, resourcefulness, and a focus on creating tangible impact can outweigh traditional advantages.

Looking Ahead in Fintech

As Upward and other players like Unit and Modern Treasury compete in the expanding embedded finance market, specialization and targeted solutions will likely become leading differentiators. Upward aims to provide essential financial services to marginalized communities, positioning itself as an essential player in the future of inclusive finance.

Amid increasing competition and evolving regulatory oversight, Upward’s focus on untapped markets and commitment to meaningful change presents a promising outlook, cementing its place in the dynamic fintech ecosystem.