The Atlanta-based payment processing firm Rainforest has celebrated a significant milestone by raising $30 million in less than a year. The record was achieved on June 26, 2024, garnering an impressive $20 million from a Series A funding round and a further $12 million from seed funding in the preceding year.
This achievement lends credence to Rainforest’s potential in the highly competitive payment processing industry. Joshua Silver founded Rainforest in 2022, aiming to enable software businesses to incorporate payment processing into their services, thereby improving client interactions.
The decision to raise more capital was made in response to a surge in demand. The extra funds will hasten growth and market penetration.
Prior to Rainforest, Joshua Silver successfully established and sold a healthcare payment firm. San Francisco’s Matrix and Atlanta’s Tech Square Ventures, Rainforest’s early backers, were significantly involved in the most recent round of funding.
Rainforest operates on a business model that accrues a portion of all transaction amounts processed through its platform.
Rainforest’s successful $30 million fundraising
Therefore, Rainforest’s revenue is highly dependent on the success of its clients. The more successful the client, the higher the transaction volume, leading to increased revenue for Rainforest.
Despite challenging fundraising conditions, Rainforest secured the $20 million Series A funding in just two months at the beginning of 2024. This period saw a slight increase in startup funding in North America, though the overall investment trend for the year was downward.
The raised capital is set to boost Rainforest’s workforce, enhance sales, amplify marketing efforts, advance business activities, and improve the customer experience. Despite only employing 24 people, Rainforest handles millions of dollars annually in transactions across various sectors, including logistics and healthcare. The company is also investing in employee benefits and R&D to stay on the cutting edge of technological innovation.
As a testament to its mission to use technology to enhance customer experiences, Rainforest continues to solidify its position as a key player in the payment processing industry.
