Welcome Tech Raises $35 Million to Empower Immigrants Through Financial Literacy

By Jemima McEvoy Sunday, May 2, 2021

Welcome Tech has raised $35 million in a Series B funding round. The Los Angeles-based startup company aims to help immigrants thrive as they settle in a new country by offering resources to improve financial literacy. Better financial literacy can broaden opportunities and boost the likelihood of success, the company believes. Though just over a decade old, this business has raised a significant amount of funding and attracted the attention of big-name investors.

Hundred-dollar bills with the word 'immigrants.'

What Is Welcome Tech?

The company was founded in 2010 by entrepreneurs Amir Hemmat and Paul Lomeli. Both founders are part of first-generation immigrant families who decided to launch the business after watching the difficulties their families experienced in navigating financial services in the United States (US).

Welcome Tech originally launched as a brand providing educational resources to the Hispanic community. However, the business has since evolved to become, as the company website describes, “the world’s first digital platform to provide the global, multigenerational immigrant community with the linguistically and culturally relevant resources they need to thrive in a new country.”

Money and Investors

The financial resources company has raised $50 million to date, according to Crunchbase. The first round of funding came four years after its launch when the company raised an undisclosed amount of money in a seed round. The startup then pulled in another undisclosed amount in Series A rounds in 2015 and 2016 and $8 million in a final Series A round in 2020 involving Crosscut Ventures.

In the Series B round that closed this month, the startup raised $35 million from seven different investors. The round was led by TVV Capital, Owl Ventures, and SB Opportunity Fund. Also investing in the businesses were return investors Crosscut Ventures, Mubadala Capital, Next Play Capital, and Owl Capital.

“Amir and his team have created a vision that combines a mission-orientated company with deep technical talent,” Crosscut Ventures co-founder and Managing Director Brian Garrett said in a statement about the Series B round. “Welcome Tech … is appealing to a very underserved market, so there is a low cost of acquisition, and they are monetizing it.”

Future of the Startup Company

Welcome Tech has a large potential customer base and, with this new capital, the focus for the business will be on expansion. Nearly 50 million immigrants currently live in the US, and more than 50% of that population entered after 2000. Currently, the business boasts around 3 million active users on its platform and the average Welcome Tech user has been in the US for five years or more. The startup company wants to reach immigrants sooner after their arrival in the US, the founders told Crunchbase in a recent interview.

“Most people spend the first three or five years in a new country to go to school or start a job, with the intent on returning to their home country,” Hemmat said. “They then realize there are other opportunities. They meet a spouse, have kids and decide to plant roots, and want to navigate where they need to go.”

The focus for the startup company will be expanding its reach among the immigrant community — and it now has more financial backing to make this happen.

About the Author

Headshot of Jemima McEvoy

Jemima is a journalist who enjoys reporting on business, particularly small business and entrepreneurship.

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