Reconciliation: The Toxic Nightmare that’s Holding Back Financial Progress
For those who have suffered through the agony of closing the books at the end of the month, you know the feeling all too well. The struggle is real, and it’s a nightmare that’s holding back financial progress.
Enter Fragment, the Revolutionary Startup That’s Taking on the Beast
Fragment, a startup founded by Thomas Neckel and Omi Chowdhury, is on a mission to put an end to the reconciliation blues. With their digital ledger API, they’re applying real-time, double-entry accounting to find the errors where things aren’t adding up.
The Catalyst for Change
Neckel and Chowdhury’s previous startup, Scuid, was acquired by CA Technologies in 2014. But it was their experience building a private investment platform called Cove.io that highlighted the importance of a ledger. "It was a huge problem we had ourselves," Neckel said.
The Problem with Reconciliation
Reconciliation is the bane of existence, especially for businesses with hundreds, thousands, or even hundreds of thousands of transactions a month. And it’s not just a matter of getting the numbers right. Reconciliation issues can lead to finger-pointing and allegations, as we’ve seen with the likes of Evolve Bank and Synapse.
Fragment’s Solution
Fragment’s digital ledger API reconciles accounts faster than humans can, especially when dealing with large volumes of transactions. With their software, fintech developers can build financial products that compose funds flows, turn them into code, and embed the code into their products.
The Vision
Neckel’s vision is to give technology companies the same financial infrastructure as Square, Stripe, and Uber. "Let’s see what’s possible when we give two people in a garage the same financial infrastructure as Square, Stripe and Uber," he said.
The Future of Finance
Fragment is revolutionizing the way we think about finance, and their competition is taking notice. "We’re excited to see what’s possible when you arm technology companies with programmable versions of the double-entry systems the modern economy runs on," said Adam Rothenberg, a partner at BoxGroup.
The Funding
Fragment has raised a total of $10.8 million since June 2021, including a seed round of $9 million backed by fintech infrastructure executives from Stripe, BoxGroup, Avid Ventures, and more. The funding will be used to grow the engineering team and invest in go-to-market resources.
The Revolution Has Begun
Fragment is officially launching to the public on Monday, and they’re already counting companies like TruckSmarter, Nala, and Pleo as early customers. The future of finance has arrived, and it’s time to revolutionize the way we think about reconciliation.
