London-headquartered TreasurySpring, a pioneering investment platform that assists companies in maximizing and safeguarding the actual worth of their cash assets, revealed the successful completion of a Series B funding round, amassing $29 million (equivalent to approximately €26.59 million).
Balderton Capital spearheaded the funding round, with participation from Mubadala Capital, as well as continued support from existing investors ETFS Capital, MMC Ventures, and Anthemis Group.
Rana Yared, General Partner at Balderton Capital and a member of the TreasurySpring board, expresses the significant potential for a radical transformation in cash investment across all businesses, highlighting the current lack of attention in this area.
Yared further acknowledges the expertise of the TreasurySpring team and commends their creation of an innovative and refined solution that caters to cash investment needs for businesses of all sizes and structures.
Balderton Capital, a seasoned venture firm, has been supporting Europe’s top innovators throughout their journey from seed to IPO for more than two decades. With both early and growth funds, they focus on investing in the technology sector, particularly in fintech, B2B SaaS, digital health, mobile, gaming, and marketplaces.
Facilitating effortless and intelligent cash investing
Established in 2017 by Kevin Cook, Matthew Longhurst, and James Skillen, TreasurySpring is a fintech firm that addresses the growing need for businesses of all sizes to diversify their cash deposits, gain access to high-quality investments, and mitigate banking risks.
This need has become even more urgent in light of escalating interest rates and recent incidents such as the failures of SVB and Credit Suisse, which underscored the risks associated with unsecured deposits.
The company’s secure platform has experienced a surge in demand, evident through the ongoing onboarding process of over 100 new clients, who will join the existing cohort of more than 250 institutional clients.
The proficiency to revolutionize an underappreciated domain of finance
TreasurySpring positions itself as a frontrunner in capitalizing on the vast untapped potential of the cash market, a sector worth trillions of dollars that has been overlooked amidst the fintech revolution. This neglect can be attributed to factors such as complexity, entry barriers, and a general lack of awareness regarding the capabilities of money markets.
The founders of TreasurySpring assert that their extensive expertise in hedge funds, asset management, and investment consultancy, accumulated over several decades, equips them with the knowledge and insights to enhance this industry.
Currently, businesses typically hold their cash in bank accounts, which are secured only up to a maximum of $250,000 in the US and £85,000 in the UK. Access to a broader range of cash investment options has traditionally been limited to large corporations and banks, who possess the necessary teams, knowledge, and infrastructure.
TreasurySpring aims to change this dynamic.
Their platform enables businesses to access over 600 standardized cash investment products across seven different currencies and three distinct categories, including governments, corporations, and prominent financial institutions like Goldman Sachs, Barclays, and Societe Generale.
Through TreasurySpring’s Fixed-Term-Funds (FTFs), customers gain regulated and standardized access to alternative cash investments, ensuring flexibility, safety, and diversification.
The fintech company has developed the essential infrastructure that allows businesses to invest in FTFs for durations as short as one week or as long as 13 months, tailoring the investment to their specific needs.
TreasurySpring reports significant growth, with a sevenfold increase in the past 12 months alone, and the total issuance on their platform currently surpassing $50 billion.
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Usage of the Investment
To support its growth ambitions, TreasurySpring plans to utilize the funds to expand its product, sales, marketing, and technology teams, intending to increase its workforce by 50 percent within the next year. Additionally, the company aims to enhance its product offerings, advance its services, and expedite its international expansion.
Kevin Cook, co-founder of TreasurySpring, emphasizes the long-standing underestimation of cash’s significance by both operating businesses and investors. With the recent increase in interest rates and the reemergence of crises in the banking sector, companies of all sizes have recognized the advantages of diversification, security, and appealing risk-adjusted returns.
Cook further expresses the company’s rapid growth over the past five years and its advantageous position to capitalize on current market dynamics.
Regarding the Series B round of funding, Cook expresses satisfaction that Balderton is leading the way, as they possess a deep understanding of TreasurySpring’s domain and the necessary experience to support their journey towards becoming a global leader in institutional cash investment.
