ImpactAlpha, December 15 — Oakland-based CNote secured $3 million in equity funding to meet the increased capital needs from community development financial institutions, or CDFIs.
The round for the women-led fintech company was led by ManchesterStory with additional funding from Artemis Fund, SixThirty Ventures, H/L Ventures, Clearstone Capital and Lateral Capital. “Our technology can help speed the flow of capital into these communities to support a faster recovery,” said CNote’s Cat Berman.
There are hundreds of billions of dollars sitting in low- or no-interest savings accounts. CNote launched in 2017 with a high-yield savings product that facilitates lending to small businesses and underserved communities. Depositors earn 2.5% returns, higher than the 1% or less that most savings accounts offer.
CNote’s Promise product, launched this year for accredited investors, secured a $20 million commitment from Mastercard in October to back its COVID-response efforts (see, “CNote launches fund to boost lending to women business owners”).