Relay has secured a $50 million investment from General Catalyst’s Customer Value Fund (CVF) as the company looks to accelerate customer acquisition and expand its SMB banking platform.
The financing structure differs from a traditional equity round by providing capital specifically for sales, marketing, and customer acquisition expenses without requiring additional ownership dilution.
Under the model, General Catalyst receives a capped share of revenue generated from newly acquired customers rather than equity in the business.
Relay said the funding allows the company to continue investing in product development while scaling customer growth without increasing pressure on cash burn.
Founded in 2018, Relay provides online business banking and financial operations tools for small and mid-sized businesses, including checking and savings accounts, accounts payable and receivable workflows, payment requests, and expense management capabilities.
According to the company, Relay now serves more than 110,000 businesses and manages over $1 billion in customer deposits.
The deal also highlights the growing role of alternative financing models within the fintech ecosystem, particularly as companies seek non-dilutive growth capital to fund expansion initiatives more efficiently.
General Catalyst launched the Customer Value Fund model to finance customer acquisition spending directly, with repayments tied to future revenue performance rather than fixed debt obligations.
Relay previously raised a $32.2 million Series B round in 2024 led by Bain Capital Ventures.
