Y Combinator-backed Proper Finance Raises $4.3M to Create the First Integrated Reconciliation Software for Fintechs to Maintain Complete Financial Accuracy

Proper's technology is creating an industry-standard platform for fintechs to maintain their data integrity, improving the speed of innovation across the industry and the overall health of the financial services ecosystem.

SAN FRANCISCO, June 8, 2022 /PRNewswire/ -- Proper Finance, the integrated reconciliation and ledger data platform that enables financial technology companies to maintain complete financial accuracy, closed a $4.3M seed round led by Redpoint Ventures with participation from BoxGroup, Mischief, Y Combinator, and more.

Some of the tech industry's fastest-growing startups belong to the accrescent fintech ecosystem. Through new financial tools and services, these companies entirely reshaped how consumers and businesses interact with their finances, moving money around the world at unprecedented levels of speed and volume. Such rapid growth makes it nearly impossible for these fintechs to scale their reconciliation processes, making them vulnerable to financial data inaccuracies that can mount into larger financial problems that are sometimes impossible to solve.

"Since Proper's inception, we've met with companies that range from household names to smaller upstarts, and what we've discovered is that being unable to maintain complete financial accuracy is a problem that is not just common, but universal to all fintechs," said Kyle Maloney, co-founder, and CEO of Proper. "We're providing a ubiquitous solution to help the ecosystem at large so that fintechs can trace and account for every payment that flows through their systems at scale. Not accounting for every single cent can snowball into scenarios where six-digit sums are unaccounted for. Our team's skill set is unparalleled and they were uniquely assembled to solve this specific problem using their hybrid fintech, banking, and accounting backgrounds."

With Proper, fintechs don't need to spend precious engineering resources on low-level data tasks, or on creating and maintaining bespoke internal systems. Knowing that Proper has its financial operations securely covered, Proper's customers can use those resources to focus on core business and innovate new tools and services that they can more swiftly bring to market.

"Oftentimes data integrity is an afterthought for new fintechs, and they have to retroactively build these processes into their workflows, creating large sums of work for the lean engineering teams of an upstart," said Helson Taveras, Chief Technology Officer of Keep. "By selecting Proper for our ledgering, we can manage complex fund flows from the start, saving developer time and resources for what we need the most: bringing new products to market. Working with the Proper team has been absolutely stellar; they are prompt, insightful, and always willing to jump on a call for help."

"The team at Proper is incredibly talented and has a deep understanding of this problem space," said Tony Ford, investor, and former CTO of Marqeta. "To properly support successful fintech products, you must have financial data integrity and efficient payment operations. With the Proper platform, fintechs will have the help they need to support their complex financial applications."

With Proper, fintechs can manage their financial data – from payments providers to banks, network files such as NACHA, or even in-house payment processing systems – within a single platform. Proper is the fintech industry's first scalable, easy-to-integrate reconciliation and ledger software for modern fintechs of all sizes. With this round of funds Proper plans to further develop its already robust suite of products: Reconciliation-as-a-Service, payments data platform, and the universal ledger. Additionally, the Proper team will introduce no-code tools for payment operations teams to track and reconcile money movement across systems, as well as additional payment method integrations.

"Proper is such an exciting investment for us because when we ask fintech operators and marketplaces we universally get a response indicating how big of a pain point payment reconciliation is. This is why we believe this is the right wedge into building a broader fintech ops platform" said Medha Agarwal, Partner at Redpoint. "The team's genuine excitement to drive improvement for their customers, their deep understanding of the context and first-hand experience from their time at Marqeta, and its technically impressive platform, positions Proper to be the first company to successfully solve such a complex, industry-wide obstacle."

About Proper: Proper's mission is to accelerate the speed of innovation in fintech and improve the health of the financial services ecosystem by ensuring that the world's most innovative fintech companies are maintaining precise financial data at scale. Proper is the first integrated reconciliation and ledger software that maintains complete financial accuracy for financial technology companies of all sizes. Proper is a 2022 Y Combinator participant backed by Redpoint Ventures.

About Redpoint Ventures: Redpoint has partnered with visionary founders to create new markets and redefine existing ones since 1999. We invest in startups across the seed, early and growth phases, and we're proud to have backed over 578 companies—including Snowflake, Looker, Kustomer, Twilio, 2U, DraftKings, Duo Security, HashiCorp, Stripe, Root Insurance, HomeAway, Heroku, Netflix, and Sonos—with 181 IPOs and M+A exits. Redpoint manages $5.8 billion across multiple funds. For more information visit: http://www.redpoint.com/

SOURCE Proper Finance