Q2ebanking, a provider of highly secure electronic banking solutions for banks and credit unions throughout the U.S., announced today that the company closed $20 million in its Series C financing.
This round was led by a new investor, Battery Ventures, with continued support from Adams Street Partners, which led Q2's first two financing rounds.
The company provides ebanking technology for approximately 400 financial institutions, reaching over 3 million online users. This latest round of financing will be used to expand Q2's sales and marketing efforts, as well as invest in continued platform innovation. New research and development efforts will focus on a unified user experience, mobility solutions, additional commercial features and further enhancing the company's leading edge security offering.
"The addition of Battery Ventures and the continued commitment from Adams Street Partners is a reaffirmation of our single echannel strategy and its corresponding value to the market," said Matt Flake, CEO and president of Q2. "The investments we are making will enable Q2 to further serve the needs of our current and future clients, and prepare the company for its next stage of growth."
The company's revenue growth accelerated to 51 percent in 2012, an increase from 49 percent the year prior. It enlarged its footprint among community and regional institutions by about 25 percent, and now has more than 70 clients with assets exceeding $1 billion.
"Q2 is doing something very different in the market, and we've been tracking them for the past several years, looking for an opportune time to partner and help fuel their growth," said Michael Brown, general partner at Battery Ventures. "The Q2 team continues to innovate and delight customers, and we look forward to supporting them as they turn up the volume on product offerings and market reach."
Jeffrey Diehl, partner at Adams Street Partners, commented, "We have been involved in each round of financing with Q2ebanking, and continue to be pleased with the company's growth and performance. Q2 provides the ideal combination of innovative technology and a strong customer focus. We look forward to its ongoing development and market success."