Scoop: VC-backed Cross River Bank eyes IPO
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KKR and Andreessen Horowitz-backed Cross River Bank is eyeing an IPO, Axios has learned.
Why it matters: It would be the first venture-backed bank to go public in years.
Driving the news: Cross River Bank invited Wall Street banks to a bakeoff in the tail end of last year for a potential IPO, and has picked leads, sources tell Axios.
Context: The company's Series A raise in 2016 was a shock to the system — fast-paced venture capital getting in regulation-bounded banking was an oxymoron.
- Since then, Cross River has collected hundreds of millions more in funding, and was last valued at over $3 billion, with investors including Battery Ventures, Ribbit Capital, and Eldridge.
- The pitch: Traditional banks were poor at serving tech companies. Cross River fill that gap, and would later also serve crypto companies.
- In 2023, the FDIC issued a consent order to the bank, amid a crackdown on bank-fintech partnerships.
By the numbers: According to bank call reports from the FFIEC, Cross River posted gross revenue of $516.6 million last year, up some 5.6% largely on rising payments fee income and a reduction in losses from the sale of loans.
- The company's profit dipped in 2025 by about 35% to $24 million.
Zoom out: This comes amid a surge of companies looking to acquire banking charters under the new administration.
- But it's also raised the question as to who actually needs a charter — and for whom it's undue regulatory stress and cost.
The bottom line: Many have been eyeing the IPO markets. But the market's shaky performance in recent weeks is leading to caution.
