Atomic: Connect Payroll & Gain Income Control

Atomic Secures $22 Million Series A Funding

Fintech company Atomic has announced the completion of a $22 million Series A funding round. Core Innovation Capital spearheaded the investment, with contributions also coming from existing investors.

To date, the company has successfully raised nearly $39 million in funding.

Focus on Payroll Data APIs

Atomic provides an API-based product centered around payroll data. This technology supports several fintech startups, including Dave and Bond, making the company a noteworthy player in the industry.

The APIs developed by Atomic enable consumers to link their income to various services. For instance, users can establish direct deposit with a neobank.

Simplifying Income Verification

Atomic’s technology also facilitates streamlined income and employment verification processes for workers.

According to Lindsay Davis, Head of Markets at Atomic, the company aims to “unlock the power of the paycheck.”

Differentiating from Plaid

Currently, Atomic does not directly compete with Plaid, a well-recognized financial API provider, as stated by Davis.

While Plaid specializes in connecting consumer bank accounts to financial services, Atomic concentrates on income streams.

This allows for the potential diversion of income, either partially or fully, to new financial accounts, or simply provides observability for verification purposes with user consent.

Revenue Model

Atomic’s pricing structure is multifaceted. Corporate clients are charged on a usage basis for income and employment verification services.

The direct deposit product is offered under a more traditional SaaS subscription model.

Davis highlighted that many customers opt for a bundled package of both services, demonstrating a hybrid approach to pricing – combining on-demand and subscription options.

The Broader Trend of Consumer Financial Control

A growing number of fintech startups are developing products designed to give consumers greater control over their finances.

Businesses are willing to invest in these services as they reduce obstacles to attracting new funds to their platforms.

It’s unsurprising that neobanks and other financial service providers are investing in solutions that empower users to make informed choices.

Ultimately, this trend is contributing to a financial landscape that is becoming increasingly responsive to consumer needs and preferences.

Money

TechCrunch inquired with the company regarding the timing of their Series A funding round – a line of questioning that has become standard practice due to the increasing trend of investors leading funding rounds. The traditional expectation that startups must achieve a specific revenue level before raising a Series A is no longer consistently observed.

According to Davis, a company is prepared to secure Series A funding once it possesses a market-ready product and demonstrable customer engagement. Consequently, Atomic determined that the present moment was appropriate for this funding round.

She further stated that the company had received offers for more capital in the preceding year, but declined them as they weren't yet prepared to accept the investment. However, with proven market demand for Atomic’s direct deposit solution, and following the receipt of initial term sheets, the startup concluded that the time was right.

Currently, Atomic employs approximately 55 individuals, and is actively pursuing a significant expansion of its workforce. Davis highlighted that the company currently has 20 positions available.

Significant opportunities for growth exist beyond Atomic’s existing operations. Given their work with income verification, TechCrunch is interested in observing whether Atomic will eventually enter the credit scoring market. The current credit scoring system in the United States is notably flawed.

We are actively seeking the company that will challenge the established agencies responsible for evaluating creditworthiness for loans and financial services.

It remains to be seen if Atomic will be that company.