Core banking system vendor Thought Machine raises $200m in Series C

Core banking software vendor Thought Machine has raised $200 million in its Series C funding round, bringing its valuation to over $1 billion.

Thought Machine hits the unicorn status with new funding

The Series C round was led by Nyca Partners, a US-based venture capital firm, with participation from existing investors British Patient Capital, Eurazeo, Molten Ventures (formerly Draper Esprit), Backed, and IQ Capital.

Banks (and their venture capital arms) that are on the Thought Machine client list – ING Ventures, JPMorgan Chase, Standard Chartered Ventures, Lloyds Banking Group, and SEB – also contributed to the funding.

Founded in 2014, Thought Machine now has five offices around the world and has grown its team by 200+ people since 2020.

The money will be used to further develop its flagship core banking solution, Vault, and its Universal Product Engine, which, the Thought Machine claims, “allows for unparalleled flexibility in product development and configuration”.

Hans Morris, managing partner at Nyca Partners, says the banks that are looking to upgrade their core architecture tell Nyca Partners that “Thought Machine’s engineering approach is unrivalled”.

Paul Taylor, the vendor’s founder and CEO, states his company was set up to “eradicate legacy technology from the industry”.