Fintech startup TreasurySpring raises $ 10 million for platform providing online access to fixed-term funds – TechCrunch
Fixed-term funds (FTFs) have always been a bank-to-bank market. FTF products invest in some of the safest assets, including UK government bonds, US government bonds and top rated companies. They allow holders of large sums of money (such as charities, private funds, family offices, etc.)
TreasurySpring is a fintech startup that aims to open up access to this area of financial markets, by creating a fixed-term fund platform. He has now raised a $ 10 million Series A investment round co-led by MMC Ventures and Anthemis Group. Existing investors, including ETFS Capital, participated, bringing the total to $ 15 million.
TreasurySpring claims that its FTF platform gives holders of large cash balances online access to a menu of exclusive cash investments on a daily basis. This gives them access to an asset class that is generally only available to large financial institutions.
Founded in 2016 by Kevin Cook (CEO), Matthew Longhurst and James Skillen, Cook said in a statement: “After a 12 month period of increasing assets under management tenfold, we wanted to bring in the best possible investment partners to support our ambitious growth plans. We have long admired both Anthemis Group and MMC, so I am delighted that they co-led the cycle and we are delighted to be working with Sean, Ollie and their respective teams as we move into the next phase of our journey to redefine cash investing. and front office cash flow.
Given the currently low and negative interest rates and uncertain global financial outlook, TreasurySpring says its platform is likely to appeal as an alternative to traditional bank deposits and money market funds. He says he has now issued more than $ 9 billion in FTFs to clients that include the FTSE 100 and other listed companies, fund managers, large private companies, charities and family offices.
Yann Ranchere, Partner at Anthemis Group said: “With its ambitious and mission-driven team, TreaurySpring opens up the traditional money market to a whole new pool of participants.
Oliver Richards, Partner at MMC Ventures added: “After working with the TreasurySpring team for the past two years, we have absolute confidence in their ability to deliver on their unique vision of leveling the playing field in matters of short-term cash and funding investment, through a platform that not only brings value to its clients and issuers, but also enhances the diversification and systemic stability of money markets as a whole.
Does TreasurySpring have direct competitors? The company does not. That said, bank deposits and money market funds remain the only tools available to most holders of large cash balances, so the banks and asset managers that offer these products are competitors, “in a. to a certain extent, “admits the firm. However, they are also “collaborators in many cases”.
Cook said, “The adoption of the platform is driven by the realization that the risks and rewards of the traditional [deposit and MMF] the options become less and less attractive, while building the infrastructure to do something else is complex, cumbersome, time consuming and expensive.