AeroPay, a Chicago-based digital payments platform powering bank transfer payments for businesses, announced today the closing of a $5+ million Venture Round. The round was led by Chicago Ventures, a firm that leads investments in early-stage startups. The Chicago Ventures portfolio includes online financial services company M1 Finance, celebrity video-sharing website Cameo, digital parking marketplace SpotHero, and peer-to-peer review site G2.
“We’ve kept an eye on what the team at AeroPay has been building and we’re impressed by their ability to execute. They’ve done it without cutting corners,” said Stuart Larkins, Co-Founder and General Partner of Chicago Ventures. “We firmly believe they are changing the way money moves in a manner that will positively impact businesses of all kinds. Their recent growth and base of operations in Chicago made it a great fit for our firm and we’re excited to be on the journey with them.”
Other investors in the round include FinTech experts Continental Investors, who led AeroPay’s seed round, former Google executives, cannabis industry veterans, and seasoned enterprise retail professionals.
The funding will support recruiting new talent, continued growth in the cannabis industry, and building out additional features of the product. AeroPay’s API-driven platform currently processes payments for hundreds of brick-and-mortar and eCommerce businesses including non-profits, restaurants, retail, technology, and cannabis.
While AeroPay services all verticals, the company has seen significant success with cannabis businesses since launching into the industry. In 2020, the State of Illinois surpassed $1 billion in legal cannabis sales. The industry as a whole is estimated to contribute $130 billion to the economy by 2024.
AeroPay utilizes strategic partnerships with other ancillary technology providers such as Blackbird, a cannabis software and delivery company, and Olla, an eCommerce platform built for cannabis retailers, to accelerate their growth in the space.
“We’re proud that our platform can handle a variety of use cases through our API and frontend technology. Our ability to be flexible and solve many of our customer’s pain points allows us to be the long term payments partner they need,” said Daniel Muller, CEO & Founder of AeroPay. “We’re excited to continue bringing better payment options to underserved markets that have been left behind by traditional providers.”
A true digital payments option has been refreshing for operators in the historically cash-reliant cannabis industry.
“Working with AeroPay has been great from the get go,” said Mark Passerini, Executive Vice President of Operations at Mission Dispensaries, a multi-state operator. “The onboarding process was quick and easy, the customer experience has been fantastic, and our store managers are thrilled to offer a cashless payment option that eliminates the need to handle cash and keeps both customers and employees safe.”
The AeroPay platform is supported by Safe Harbor Private Banking (a division of Partner Colorado Credit Union), the leading banking provider for cannabis businesses. The partnership leverages AeroPay’s technology to facilitate payments, with Safe Harbor Private Banking providing a seamless compliance process and additional banking services.
“There is no better place to build a FinTech company than Chicago as it bridges financial services, an industry of historical significance to the city, and technology, a sector of growing prominence in the city’s startup community,” said Muller. “We’re especially motivated being situated in Illinois as it is becoming one of the most successful legal cannabis markets in the U.S. We’re just scratching the surface and we can’t wait for what comes next.”
AeroPay is a next-generation payments company, reimagining the way money is moved in exchange for goods and services. Since its founding, AeroPay has operated with the goal of simplifying payments for businesses of all sizes in every industry. AeroPay’s payments platform provides lower costs, faster settlements, and enhanced security.