FinTech News
Grasshopper Bank Raises $46.6 Million, Adds Members to Board
A digital full-service bank built for small businesses has raised a new round of funds while adding to its Board.
About the Raise:
Recently, Grasshopper Bank has announced $46.6 million in new funding. The round was led by Patriot Financial Partners LP while Glendon Capital Management also participated. To date, Grasshopper has now raised $218.8 million, including a $10.6 million equity round last year. Also included in that total is a $116.2 million private equity round also led by Patriot Financial Partners back in 2019.
With the news of this new funding, Grasshopper also revealed that it is expanding its Board of Directors. Former Eastern Bank CFO James Fitzgerald, Klaros Group co-founder/partner Brian Graham, former Office of the Comptroller of the Currency senior lawyer Karen Solomon, and GMS Surgent CPA’s founder John M. Surgent have all been appointed to the bank’s board. They’ll join the six other existing members, as well as Grasshopper CEO Mike Butler.
This latest funding comes during a period of growth for Grasshopper — including its merger with Auto Club Trust in April. According to the bank, its total assets have grown 53% during the first half of the year to reach $1.33 billion. Additionally, total deposits have reached $2.37 billion (up 81%) while loan balances grew to $961.8 million (an increase of 49% from the end of 2024).
About Grasshopper Bank:
Grasshopper Bank is a digital banking platform catering to small businesses and startups. Among the features offered to clients are virtual payment cards, cash flow management tool, and more. In addition to offering small biz checking and savings accounts, the institution also offers solutions for venture capital and private equity firms.
What They’re Saying:
Commenting on the funding raise and state of Grasshopper, the bank’s CEO Mike Butler said, “From the beginning, our vision has been to redefine what digital banking can do for entrepreneurs, modern businesses, and the ecosystem that supports them. With our recent acquisition, we are excited to expand that vision to serve consumers through our affinity banking partnership with The Auto Club Group. The backing from this seasoned group of investors is a powerful vote of confidence in our mission, our strategy and our team. We’re incredibly proud of the momentum we’ve built, and we’re just getting started.”
Butler continued, “This capital gives us the opportunity to continue pushing boundaries, broaden our reach, and unlock new possibilities in how we deliver meaningful, future-ready digital banking experiences that meet people where they are and anticipate where they’re headed next.”
My Thoughts:
Clearly Grasshopper Bank is having a banner year. Moreover, between this new funding and the expansion of its Board with impressively qualified directors, it would seem as though the institution is well-positioned to continue its growth. So, while I hadn’t personally heard of them before, they are definitely on my radar now.
Author
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