iraLogix raised a $22M Series C with big hiring plans

Is fintech having a moment in Pittsburgh?

iraLogix has raised a $22 million Series C, the North Side-based fintech company said Wednesday. The announcement follows a May SEC filing that showed an equity raise worth more than $14 million.

Cofounder and Chief Strategy Officer Joe Hipsky told Technical.ly the Series C will be used broadly for hiring and further development of iraLogix’s technology, which allows financial institutions to customize their IRA offerings.

“In addition [to] expanding our footprint in the IRA space, we’re shifting towards applying the platform to other areas of the industry that are in need of modernization,” Hipsky said.

The round was led by individual investors, represented by Boston-based Great Hill Partners managing directors Matt Vettel and Nick Cayer. Hybrid Capital, Roan Capital, University Growth Fund, Trog Hawley Capital, Circadian Ventures, Great North Ventures and Riverfront Ventures all participated. As part of the deal, Peter de Silva — the former president of TD Ameritrade’s retail division, president of Scottrade’s Investment Management, and president and COO of UMB Financial Corporation — will join iraLogix’s board.

iraLogix reports an annual growth rate of over 100% for the past three years. In Q2 2021, it also announced an $11 million Series B extension capital raise led by Morningstar, Inc., with its total fundraising nearing $50 million.

The company moved to Pittsburgh from Miami in 2016 when it had just four employees. Now, iraLogix employs 82, with headquarters in Nova Tower One.

Hipsky said the company expects to be “in the 100 range” by the end of 2022, and to grow to around 300 employees in the next few years. About half of the team is based in Pittsburgh. The goal is to “have as many here as we can find, ideally.” (Check out open roles here.)

“While we do still maintain a south Florida presence, Pittsburgh is home,” the CSO said.

This is the latest fintech growth news in a couple of months for a city that’s not known for the industry — but could be.

Along with iraLogix, indi and triple — both startups out of numo, PNC Bank’s internal incubator and fintech lab — join other companies in numo’s portfolio as part of a burgeoning fintech scene in Pittsburgh that’s largely fueled by the financial expertise of PNC, which has long had headquarters here. Other players like Honeycomb Credit and Pineapple Payments are adding to that innovation, as are digital assets firms like Stronghold Digital Mining. That sector of the tech economy has yet to see the success that robotics, artificial intelligence or life sciences has in Pittsburgh; Still, the growing number of companies innovating in the space, paired with a couple of successful exits, bodes well for the fintech industry’s local future.