Constellation Digital Partners, a Raleigh-based startup launched after research and development at Coastal Credit Union, has raised another $3 million in financing and secured a new partner.
California-based Kinecta Federal Credit Union, which manages more the $4 billion in assets, made the investment.
Constellation CEO Kris Kovacs, who led development of the fintech platform at Coastal and was named CEO of the new company formed by Coastal and other partners, had already secured backing from seven partners earlier this year:
“Kinecta is an invaluable asset to us and we’re honored to work with them. This strategic partnership puts us in an excellent position for launching the platform soon,” said Kovacs. “We are very excited to bring Constellation to life with the help of our incredible credit union partners like Kinecta, so that we can truly change the future of how digital banking will work for credit unions and members together.”
The credit unions representing more than $16 billion in assets that invested earlier, include:
- 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
Constellation officially launched on May 2 with technology 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.
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.