London-based TreasurySpring, an investment platform that helps firms unlock and protect the true value of their cash assets, announced on Monday that it has raised $29M (approximately €26.59M) in a Series B round of funding.
The round was led by Balderton Capital. Mubadala Capital also participated in the round along with existing investors ETFS Capital, MMC Ventures and Anthemis Group.
Rana Yared, General Partner at Balderton Capital and TreasurySpring board member, says, “There is a huge opportunity to radically transform cash investment for all businesses, but it remains entirely overlooked.”
“The TreasurySpring team are true experts and have built an innovative, elegant solution to make cash investing work for all businesses, regardless of size and structure,” adds Yared
Balderton is a multistage venture firm that backs Europe’s top innovators from seed to IPO for over two decades. It has both early and growth funds and invests in the technology sector, backing firms in fintech, B2B SaaS, digital health, mobile, gaming, and marketplaces.
Making smart cash investing easy
Founded in 2017 by Kevin Cook, Matthew Longhurst, and James Skillen, TreasurySpring is a fintech company that solves the rising demand for businesses (of all sizes) to diversify their cash deposits, get access to high-quality investments, and reduce their banking risk.
This challenge is especially pressing in light of rising interest rates and the recent failures of SVB and Credit Suisse, which highlighted the risks of unsecured deposits.
Demand for the company’s platform has increased due to its secure solution, with over 100 clients presently in the onboarding process, joining the 250+ institutional clients who have previously signed up.
“The expertise to transform an unloved area of finance”
TreasurySpring claims to be taking advantage of the enormously untapped cash market, a multi-trillion dollar sector that has thus far been overlooked by the fintech revolution. The complexity, entrance restrictions, and general ignorance of the money markets’ capabilities are some of the reasons behind this.
The founders of TreasurySpring say they have the knowledge and insight to improve this industry thanks to their decades of combined expertise in hedge funds, asset management, and investment consultancy.
According to TreasurySpring, currently, businesses keep cash in bank accounts that are only secure up to a maximum of $250K in the US and £85K in the UK. Only the largest corporations and banks have the teams, knowledge, and infrastructure required to access a better, wider range of cash investment options.
This is being changed by TreasurySpring.
It is a platform that allows businesses access to over 600 standardised cash investment products in seven different currencies and three distinct categories, including governments, corporations, and banks like Goldman Sachs, Barclays, and Societe Generale.
The platform’s Fixed-Term-Funds (FTFs) offer standardised, regulated access to cash-investment alternatives, assuring customers’ flexibility, safety, and diversification.
The fintech company has developed the necessary infrastructure to let businesses purchase FTFs for as little as one week or as long as 13 months as they choose.
TreasurySpring reports that it grew by more than 7 times in the last 12 months and the platform’s total issuance is currently above $50B.
Capital utilisation
TreasurySpring says it will use the funds to grow its product, sales, marketing, and tech teams with plans to grow its headcount by 50 per cent in the next 12 months. The company also further wants to develop its products and services as well as accelerate international expansion.
Co-founder Kevin Cook says, “For too long, the importance of cash has been overlooked by many operating businesses and investors alike. As rates have begun to rise across the globe and crises have once again started to permeate the banking sector, companies of all sizes have woken up to the benefits of diversification, security and attractive risk-adjusted returns.”
“We have been growing the business rapidly for the last 5 years and are very well-placed to capitalise on current market dynamics.”
“We’re delighted that Balderton is leading our Series B round – they understand our world deeply and have all of the experience necessary to support us on our journey to becoming a global leader in institutional cash investment,” adds Cook.