CNote Closes Series A Investment, Cementing the Women-Led Impact Platform’s Leadership in Closing the US Wealth Gap Through Financial Innovation – GlobeNewswire

OAKLAND, Calif., Sept. 19, 2022 (GLOBE NEWSWIRE) — Building on the momentum of its impact platform—already adopted by corporate leaders including Apple, Mastercard, Netflix and PayPal as a scalable way to address wealth inequality in the U.S.—CNote announced today that it raised $7.25 million in an oversubscribed Series A investment round.

American Family Insurance Institute for Corporate and Social Impact led the round, joined by Astia Fund, BankTech Ventures, Commerce Ventures, CityRock Venture Partners and other investors. 

CNote gives corporate treasurers a powerful ESG tool, driving high growth

“We’re addressing a massive systemic problem with a market-friendly platform that has already been adopted by forward-thinking corporations and other institutions,” said Catherine Berman, CEO and co-founder of CNote, which deploys investor funds into community financial institutions that advance economic equality, racial justice, gender equity and climate change adaptation. “By pumping hundreds of millions of dollars into undercapitalized communities, CNote is activating corporate dollars for systemic change while minimizing risk.”

CNote’s technology platform gives corporations a simple, safe way to deploy ESG cash and fixed income in underserved communities at scale. CNote places investor funds into deposit and loan products through a network of over 2,000 impact-driven community financial institutions that serve low- to moderate-income communities, support women and people of color entrepreneurs, fund affordable housing and provide other forms of economic inclusion.

CNote is deploying about $300 million in cash and fixed-income investments via its platform—reflecting over 370% growth since 2020. The platform has 1,900 corporate, foundation and individual investors, including AMD, Patagonia and Xylem, as well as the companies listed above.

Noted Berman, “For CEOs, CFOs and large institutional investors, CNote has the network, the community finance expertise and the technology to provide unparalleled access to ESG cash and fixed-income opportunities at scale alongside trackable impact. We’ve reduced the friction points so they can activate their balance sheets quickly and with minimal effort.”

The Series A investment will enable CNote to advance its technology, expand its sales team and deepen its network of community financial institutions.

Mission-aligned investors aim to advance equality and build strong communities

The Series A round reflects the women-led fintech’s insight that assembling a diverse stakeholder group is key to multiplying its successes. “We’re co-creating the future we want to see, and that requires bringing key stakeholders to the table, including these investors,” Berman said.

“CNote is leading the way in providing capital for CDFIs [community development financial institutions] and minority depository institutions, capitalizing on the exploding ESG market,” said Rob Kornblum, principal and portfolio manager for the American Family Insurance Institute for Corporate and Social Impact. “We know that capital access is one of the keys to producing generational wealth for …….