Total amount raised
$48.1 Millions
Latest funding date
08/01/2022
Location
Promise has successfully raised significant funding through multiple rounds, attracting notable investors such as Nick Caldwell and Y Combinator. The company offers a modern payment processing platform tailored for utilities and government agencies, providing flexible payment options and sophisticated outreach methods.
Keep reading to explore the intricacies of Promise's fundraising journey and the investors backing this innovative platform.
What Is Promise?
Promise, founded in 2017, is a technology company based in Oakland, California. The company was established by Diana Frappier and Phaedra Ellis-Lamkins.
Operating in industries such as debt collections, financial services, fintech, government, and mobile payments, Promise offers a modern payment processing platform tailored for utilities and government agencies. The company employs a small team of 1-10 people.
Promise's platform provides flexible payment options, including zero-interest installment plans and relief distribution, aiming to simplify government debt and help people pay their bills more easily.
How Much Funding Has Promise Raised?
- Pre-Seed Round
- Amount Raised: $120K
- Date: January 2018
- Lead Investors: Y Combinator
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop the initial version of the platform and validate the business model.
- Seed Round
- Amount Raised: $3M
- Date: March 2018
- Lead Investors: First Round Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and further develop the platform's capabilities.
- Series A
- Amount Raised: $20M
- Date: February 2021
- Lead Investors: Kapor Capital, XYZ Venture Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale the platform and increase market penetration.
- Series B
- Amount Raised: $25M
- Date: February 2022
- Lead Investors: The General Partnership
- Valuation at Round: Over $520M
- Motivation Behind the Round: To accelerate growth, hire additional staff, and expand services to include federal payments.
Total Amount Raised: $48.12M. Current Valuation: Over $520M.
Key Investors
- The General Partnership
- Details: The General Partnership led the Series B funding round for Promise. They are known for investing in high-growth potential companies.
- Investment Focus Areas: Technology, fintech, innovative startups
- Notable Investments: Not publicly disclosed
- Kapor Capital
- Details: Kapor Capital participated in the Series B funding round. They focus on social impact investments, particularly in underrepresented communities.
- Investment Focus Areas: Social impact, technology, underrepresented communities
- Notable Investments: Twilio, Uber
- XYZ Ventures
- Details: XYZ Ventures also participated in the Series B funding round. They focus on early-stage technology startups.
- Investment Focus Areas: Technology, early-stage startups, innovation
- Notable Investments: Not publicly disclosed
- First Round Capital
- Details: First Round Capital participated in the Series B funding round. They specialize in seed-stage funding for technology startups.
- Investment Focus Areas: Technology, seed-stage startups, innovation
- Notable Investments: Uber, Square, Warby Parker
- Y Combinator
- Details: Y Combinator participated in the Series B funding round. They are a well-known startup accelerator that provides seed funding for early-stage companies.
- Investment Focus Areas: Technology, early-stage startups, innovation
- Notable Investments: Airbnb, Dropbox, Stripe
What's Next for Promise?
Promise stands at the cusp of significant growth opportunities, driven by its partnerships with government agencies and utilities. The company’s platform, which offers zero-interest installment plans and flexible payment options, is well-positioned to address the rising U.S. household debt, which hit $15.58 trillion in Q4 of 2021. This growing need for flexible payment solutions presents a vast market for Promise to expand its services and client base.
Future fundraising opportunities appear promising as the company continues to demonstrate rapid growth, evidenced by a 32x increase in revenues and a 45x increase in customers over the past year. The potential to work with federal payments could attract further investments, enabling Promise to scale its technology and outreach methods. However, the company may face challenges such as navigating regulatory requirements and managing the scalability of its technology and customer support as it expands.
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