Thread Bancorp, the parent company of Thread Bank, has secured $30.5m in its latest funding round, comprising $27.6m in initial raise and $2.9m in extension.
This funding round was led by Portage Ventures, with additional participation from Rockmont Partners and other strategic investors.
Thread Bank is an FDIC-insured institution providing embedded and digital banking services in the US, as well as community banking in Eastern Tennessee.
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The bank intends to use the funding to support the ongoing development of its embedded banking strategy.
With this latest funding, its Tier 1 capital raised to date reaches $100m.
Thread president and board of directors member CEO Chris Black said: “From the outset, our mission at Thread has been to use technology to meet customers where they live their financial lives and conduct their financial business, challenging traditional methods and paradigms for delivering banking products and services.
“This funding round, backed by seasoned financial technology and banking investors, serves as a resounding vote of confidence in our team, embedded approach, and customer-first vision for the future of banking.”
Thread Bank offers digital banking services through partnerships with small business and consumer brands, as well as vertical SaaS companies.
Through the embedded banking strategy, Thread aims to provide ‘digital branches’ embedded within partner platforms.
According to the company, the strategy has resulted in significant growth since its founding in 2021, shifting from a traditional community bank to a provider of embedded banking solutions for its customer base.
This funding follows a period of rapid growth for Thread Bank, which now manages over $2bn in partner deposits.
The bank has increased embedded deposits by threefold between January 2024 and October 2025, with an annualised growth rate of approximately 75%.
Over the past year, Thread entered several new partnerships, including with Finxact as its core banking platform and with LoanPro for boosting its lending operations.
Also, the company opened a new corporate headquarters in Nashville, Tennessee.
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