Europe has welcomed yet another unicorn, as banking software provider Thought Machine raised $200 million, pushing its valuation over $1 billion.
The Series C was led by Nyca Partners, a US investor known for backing high-profile fintech startups including Revolut and GoCardless. Backers including ING Ventures, SC Ventures, British Patient Capital and Molten Ventures also participated in the fundraise for Thought Machine.
The London-based company’s software is designed to help large banks move away from legacy IT infrastructure to cloud-based systems, which enables them to better compete with fintech startups. Its clients include JP Morgan and Lloyds Bank, both of which also participated in its latest round.
Challenger banks have been grabbing headlines with massive fundraises this year, like Revolut’s $800 million Series E in July, but startups that are partnering with traditional institutions rather than disrupting them have been raising capital in the background. In January, Berlin-based banking platform Mambu secured €110 million, valuing it at over €1.7 billion, while London-based 10x Future Technologies received a $187 million Series C in June.
Thought Machine’s Series C brings the total number of unicorns minted this year in Europe to 65—the highest annual count ever, with a full month to go. Among the other newcomers to the herd are buy now, pay later startup Zilch and insurtech startup Marshmallow.
Featured image by Lucy von Held/Getty Images
