You know how they say that the cream always rises to the top? Well, in the case of Canadian startups, it floats.
What happened: Canadian fintech startup Float bagged a $70 million funding round led by Goldman Sachs. The firm, which provides banking services like corporate cards to small and medium businesses (SMBs), is now valued at over US$200 million, per the Globe and Mail.
- Though it’s not yet turning a profit, Float has flashed more promise than a Heisman-winning quarterback — besting $30 million in annual revenue and growing its client base to 4,000 companies.
Why it matters: There’s a growing desire among SMBs for alternative banking as traditional services favour big corporations. Last year, a Float survey of ~700 Canadian SMBs found over half felt their banks don’t understand their biz or provide adequate customer service.
- A J.D. Power study also found that SMBs were less satisfied with their banks last year amid economic challenges, with problem resolution and new account opening cited as trouble spots.
Zoom out: Float’s an odd duck in the post-rate hike funding landscape. Landing a higher valuation despite a potentially long wait for profitability is a rare feat for a non-AI or quantum startup (like Cohere and Xanadu).—QH