Seattle-based ModusBox is taking half of its financial services technology business and turning it into a separate startup called PortX, fueled by $10 million in new funding, the company announced Tuesday.
The Series A money for PortX comes on top of the $7.5 million ModusBox previously raised in April. Seattle venture capital firm Fuse, itself spun off from Ignition Partners in 2020, led the round, along with BankTech Ventures.
ModusBox and PortX CEO David Wexler said in a press release that ModusBox has been operating complementary but independent aspects of its business for several years.
Founded in 2013, ModusBox has focused on designing, developing and supporting financially inclusive real-time payment networks nationwide. PortX focuses on financial services integration software that unlocks access to core banking data, eliminates vendor dependencies, and enables integrated banking-as-a-service solutions.
“Inevitably, a reorganization of the business was necessary to maximize the potential of each side of the business and amplify the value they deliver to their respective customers,” Wexler said.
Brendan Wales, founding partner of Fuse, said PortX fits perfectly into VC’s portfolio.
“Its platform opens up innovative new solutions, fintech partnerships and rapid time to market for community financial institutions struggling to keep pace with big bank competitors with even larger budgets,” Wales said. in a press release.
PortX employs 51 people and ModusBox employs 19. The companies are headquartered in Mercer Island, Washington, near Seattle.