VC Andreessen Horowitz raises fintech startups into the $2 billion valuation club

Silicon Valley venture capital firm Andreessen Horowitz or a16z, as it is called, raised the valuation of fintech firms, Current and Greenlight to $2.2 billion and $2.3 billion respectively.

In separate Series D funding rounds, Andreessen Horowitz’s fintech funding spree kicked off with an investment of $220 million and $260 million in fintech start-ups Current and Greenlight, respectively. 

Both the fintech startups have secured a position in the $2 billion valuation club. Current’s valuation has tripled in just five months with this investing round while Greenlight's valuation increased from $1.2 billion to $2.3 billion in a six-month period. Both the start-ups’ funding rounds were led by Andreessen Horowitz as stated in their respective press releases. 

Andreessen Horowitz is a new investor for the fintech start-up, Current. David George, General Partner, Andreessen Horowitz stated in the press release, “We believe there will be a shift in the next 10 years to mobile and consumer-focused banking services powered by innovation in technology, and with Current's exceptional growth over the past year, they've clearly demonstrated they're at the forefront of this trend.”

Launched in 2015, Current provides banking services such as mobile banking, account opening, and debit-card transaction. Fintech firm Greenlight was founded in 2014 and provides services like investing and debit cards for children.

Apart from Andreessen Horowitz, which is a new investor, Current’s funding round witnessed the participation of Tiger Global Management, Scooter Braun’s TQ Ventures, Avenir, Sapphire Ventures, Foundation Capital, Wellington Management, and EXPA. 

Return investors like TTV Capital, Canapi Ventures, Wells Fargo Strategic Capital, BOND, Fin VC, Goodwater Capital, as well as new investors Wellington Management, Owl Ventures, and LionTree Partners, backed Greenlight’s funding round, as stated in the company’s official press release.

Current has secured a funding of $400 million to date as stated in the startup’s press release. Greenlight’s total funding amounts to $550 million after this investment round. 

Last week Andreessen Horowitz led a Series C funding round for Audio chat app Clubhouse along with DST Global and Tiger Global raising the valuation to $4 billion.

Picture Credits: a16z