- CNote closed $7.25 million in Series A funding.
- The round was led by American Family Insurance Institute for Corporate and Social Impact.
- The investment brings CNote’s total funding to almost $15.5 million.
The Series A round was led by American Family Insurance Institute for Corporate and Social Impact. Astia Fund, BankTech Ventures, Commerce Ventures, CityRock Venture Partners, and other investors also contributed.
The company plans to use the funds to advance its technology, expand its sales team, and deepen its network of community financial institutions.
CNote was founded in 2016 to close the wealth gap by enabling investors to invest in an economy that works for all populations, especially those in underserved communities. Using the CNote platform, corporations, institutions, and individuals can invest in fixed-income and time deposit products that are vetted to help advance economic equality, racial justice, gender equity, and climate change adaptation. When an investor places funds into CNote, the company directs the money into deposit and loan products through its network of over 2,000 ESG-focused community financial institutions.
“We’re addressing a massive systemic problem with a market-friendly platform that has already been adopted by forward-thinking corporations and other institutions,” said CNote CEO and Founder Catherine Berman. “By pumping hundreds of millions of dollars into undercapitalized communities, CNote is activating corporate dollars for systemic change while minimizing risk.”
Seeing an investment in an ESG-focused company is not surprising, despite the current funding dry spell taking place across the fintech industry. End consumers are more hungry for ESG-related products than ever, and the industry has been struggling to keep up with demand in this arena. We can expect to see more funding go toward companies touting ESG missions in the latter half of this year.