Victoria Fintech Startup DivDot Raises Oversubscribed Pre-Seed Round
Jul 16, 2020
June 8, 2020
Victoria fintech startup DivDot has raised $500,000 in an oversubscribed pre-seed funding round co-led by Sprout Fund, WUTIF Capital, E-Fund, Hello Ventures and local angels. DivDot is a payment processing provider that enables businesses to securely send and receive no-limit payments for a flat fee. With DivDot, companies can collect payment from customers, pay suppliers, set-up subscriptions and move money between internal accounts from one single dashboard, which is accessible through a web application or API. The startup reports a significant increase in new customers as businesses experienced an urgent need to replace traditional payment methods with digital means of processing transactions. The COVID-19 pandemic has highlighted the weaknesses of relying on cheque-based systems, resulting in a significant decline in cheque use – a trend that is likely to continue in the pandemic’s aftermath. DivDot was co-founded by CEO Matthew Smith, CTO Nick Addison, and COO James Davidson in 2019 and is now a registered money services business, processing millions of dollars in transactions for Canadian businesses. “DivDot is fulfilling a crucial need in the Canadian B2B payments market that has existed for a long time. Their product solution is highly relevant for small and mid-size businesses today. And it will only continue to gain in importance as organizations become increasingly reliant on operating online in the digital world,” commented Mark Benning, Managing Partner at Sprout Fund, on the funding announcement.