According to Odaily Planet Daily, BaaS fintech company Synapse raised more than $50 million in financing at the beginning of its establishment, including a $33 million Series B round led by Angela Strange of Andreessen Horowitz (a16z) in 2019. However, the company ran into trouble due to layoffs in 2023 and filed for bankruptcy protection in April this year, trying to sell its assets to another fintech company TabaPay for $9.7 million, but was rejected.
Synapse, which operated a service that allowed other companies, mostly fintechs, to embed banking services into their products, has been all but forced into a complete Chapter 7 liquidation, with many other fintechs and their customers implicated. Jason Mikula, an industry observer and author of Fintech Business Weekly, estimates that as many as 100 fintechs and 10 million end customers could be affected by Synapse’s collapse, based on documents filed by the company.
Funds from crypto app Juno were also affected by Synapse’s bankruptcy. A Maryland teacher named Chris Buckler said in a May 21 filing that he was unable to access funds he held in Juno due to issues related to Synapse’s bankruptcy.
