Konsentus completes pre-series A funding round led by Conviction Investment Partners
Conviction Investment Partners, today announced that it has managed and completed pre-series A financing for Konsentus, a provider of Regulatory Technology (RegTech) solutions for open banking. Conviction led the multi-million pound investment after recognising Konsentus’ high-growth potential and how it can contribute to creating a safe and secure open banking environment for banks and financial services companies.
Conviction represents a syndicate of global investors that focus on high-growth, B2B, software as a service (SaaS) capital opportunities. Conviction actively identifies, funds and helps to build SaaS technology businesses that will generate exceptional returns for investors. It has successfully raised over £70m of venture capital since the firm was established in 2017. Conviction has participated in one exit and two mergers, which includes Paypal’s $2.2bn acquisition of payment solutions provider iZettle.
Konsentus is a fast-growing business that launched in 2018. It was identified as a prospect because of the positive impact its RegTech solution, Konsentus Verify, is having on the open banking space. Open banking requires banks and financial services companies to share customer data and financial information with third-party organisations, exposing them to risk.
Konsentus allows financial institutions to verify in real-time that third parties are both legitimate and authorised by their country’s regulator to provide the services being requested. This helps to prevent fraud and data breaches. Its customers and partners include some of the most prestigious names in banking and finance. The solution has been white labelled by Mastercard to power its Open Banking Protect service. Mastercard is also a key investor.
Andrew Jenkins, founder at Conviction Investment Partners, explained: “We have been monitoring the open banking space for some time and it’s apparent that banks and financial services companies have reservations about exposure to risk. Konsentus helps them to mitigate against that risk while also creating a stable environment for open banking that will reduce barriers to entry and drive adoption”.
He added: “Conviction selects post revenue businesses based on their category, high-growth potential and the disruptive impact their technology has had on the market. Konsentus met with all the relevant criteria that Conviction looks for when we select an early stage business primed for growth. We’re pleased to have led the latest multi-million pound round, providing the funds that will support the business as it continues to grow and innovate”.
Mike Woods, CEO of Konsentus, said: “We have grown rapidly due to the timeliness and relevance of our solution and because it helps our customers to successfully navigate the regulatory environment that governs open banking. Our solutions ensure open banking data requests and transactions are legitimate, protecting against fraudulent activity. We operate in a fast-growing space and we will continue to scale to meet new requirements. Conviction recognises our potential and they worked closely with us during this latest round of funding. We’re delighted to have such a committed investor that is on hand to provide strategic counsel and support”.