Launched less than three months ago, a new Triangle startup is making big waves in finance circles.
Constellation Digital Partners, a Raleigh-based startup focusing on a finance software platform, lands a $3 million investment from a credit union. Teachers Credit Union, which is based in Indiana, led the Series A investment.
Kristopher Kovacs, the CEO of Constellation who pioneered the development of the platform while serving as chief information officer at Coastal Credit Union, announced the deal on Tuesday.
“We are thrilled to partner with Teachers Credit Union to bring Constellation to life,” Kovacs said in the announcement. “Credit unions are under extreme pressure from both members and existing service providers as they try and build next-generation services for members. That pressure resulted in the ‘fusion’, which became the Constellation Digital Services Platform.”
Constellation officially launched on May 2 with technology developed in Raleigh that specifically targets credit unions. Coastal and a group of other CUs as well as service providers have already pumped some $9 million into the venture after each of the nine provided $200,000 in seed funding.
- MORE COVERAGE: The backstory behind the creation of Consellation.
And so far the financial institutions like what they see.
Seven credit unions representing more than $16 billion in assets have already invested, including:
- Coastal Credit Union, which funded development of the platform
- CFCU Community Credit Union
- Meritrust Credit Union
- Farmers Insurance Federal Credit Union
- Georgia’s Own Credit Union
- Affinity Federal Credit Union
- Nusenda Credit Union
Other investors include CO-OP Financial Services and CUNA Mutual
Constellation offers a cloud-based service that the company believes will help credit unions flourish in digital banking.
“Constellation is a game changer. It’s going to be the world’s only cloud-based suite of digital financial services dedicated solely to credit unions and we just had to be part of it,” said Teachers Credit Union CEO Paul Marsh. “Constellation will redefine what credit unions everywhere can offer members, allowing all of us to finally provide the services we know our members desire in today’s digital age.”
Credit unions can capitalize on digital banking opportunities through Constellation’s services in ways they could not before, according to Kovacs.
To date, Constellation has 17 customers.