Pinwheel raises $20 million

Payroll connectivity startup Pinwheel has raised $20 million in a Series A round led by Coatue, with participation from Primary Ventures, Semper Virens, First Round Capital, and Upfront Ventures. Several angel investors also joined the round.

Founded in 2018, the NY-based startup leverages APIs to allow companies to connect into a user’s payroll information system for the sake of direct-deposit switching, income verification, and paycheck-linked lending.

Pinwheel claims that it integrates “with all major payroll providers, government portals, and gig economy platforms,” as well as being “the trusted payroll API for three of the five largest neobanks including Squares Cash App and Current.”

Bottom Line: Access to payroll data is becoming increasingly popular and useful.