● Tranched is a real-time on-chain embedded asset-based financing platform connecting originators of credit products and institutional investors, reducing cost and time-to-market
● The $3.4m round was led by Speedinvest
● The funds will be used to expand beyond Europe and enhance the Tranched product suite
London, November 12th, 2024 – Tranched, a London-based embedded asset-based financing platform which automates the process of bundling loans into securities, has raised $3.4m (£2.6 million) in a pre-Seed funding round led by Speedinvest, which includes capital from participation in the Andressen Horowitz’s Crypto Startup Accelerator (CSX) program. Blockwall, Kima and OVNI Capital also invested. The funding will advance Tranched’s platform with additional features aimed at global markets as it plans to expand its reach beyond Europe to lenders, credit funds, asset managers and banks.
Tranched is looking to disrupt the €12 trillion global securitisation industry 1 by automating manual processes, and abstracting the structural complexity and high fees involved in securitisation using blockchain technology. Lenders spend time and money going through red tape when structuring and running asset-based deals. Tranched saves lenders and their customers significant time and resources
by streamlining processes, increasing transparency, and significantly reducing the need for intermediaries and their high fees. In initial transactions, Tranched has been able to reduce some of these costs by up to 90%.
“Lenders are losing a significant portion of their economics to third-party fees and endless structuring processes. We want to help them claim back that value by simplifying their access to a broader range of financing options. This will ultimately benefit their clients, consumers and small businesses of the real economy, at a time where innovative credit, payment, and embedded finance products are rapidly growing. Our solution is applicable to any finance product. We are here to support any lender, anywhere, and help them scale their operations.”
Michael Elalouf co-founder of Tranched
“When designed correctly, asset-based finance stands out as a natural diversifier with one of the best risk-return trade-offs available. Institutional investors focused on better value for money benefit from its granularity and structural protections while enjoying a yield premium. This ultimately delivers better outcomes for their clients: the savers and future retirees of the real economy. That said, delivering those outcomes currently requires overcoming complexity, opacity and lack of liquidity. We believe blockchains and smart contracts can materially address these challenges, making Tranched the killer use-case for tokenisation.”
Clément Larrue, co-founder of Tranched
“Tranched represents the tool most fintechs have been dreaming of to attract financing more efficiently to fuel further growth. This will support hundreds of fintechs globally that have been underserved by traditional investors over the last decade. We are excited to partner with the Tranched team on this exciting next stage of their development.”
Olga Shikhantsova, Partner at Speedinvest
Revolutionising Asset Based Lending with Tokenisation
Tranched uses cutting-edge blockchain technology that directly connects lenders to investors by applying tokenisation at a deeper level than the industry has seen to date. For each facility, Tranched sets up a dedicated protocol to tokenise an originator’s receivables as they arise and verify their eligibility instantly. A suite of smart contracts is then deployed to enforce tailored borrowing base and waterfall rules over the pool of tokenised receivables and the cash flows they generate following institutional standards.
For the first time, Tranched has made it possible to see and evidence the assignment of finance receivables on-chain while automating all of the complex asset-based facility processes institutions expect to rely on when investing. This means repayments, balance updates, and any arrears are updated instantly and leave a permanent record for investors to access reporting information with no need for manual updates, ensuring transparency and security.
Each protocol offers access to the opportunity via tokenised tranche tokens with various levels of seniority and risk in order to cater to a diverse crowd of investors. This not only means access is made simpler and cheaper for any deal size, but it also paves the way for more liquidity in the asset class as distributed ledgers further remove friction around execution. Laying the foundation for digital currency mass adoption. Tranched has the vision of becoming a leading infrastructure for lenders and investors when the inevitable transition to digital currency reaches its full potential in the next several years.
Tranched:
Tranched, backed by leading venture companies Speedinvest and a16z Crypto Startup Accelerator, is the first embedded asset-based financing platform directly connecting lenders to investors, allowing them to structure and manage a transaction in a fraction of the time and cost. Our platform provides better, quicker, and more efficient access to financing for lenders, and broader investment opportunities to investors. Learn more at www.tranched.fi.
Speedinvest
Speedinvest is a leading early-stage venture capital firm with more than €1 billion AuM and 40+ investors based in Berlin, London, Munich, Paris, and Vienna. Our dedicated sector-focused teams are the first to fund Europe’s most innovative technology startups and our in-house operational experts are on hand to offer founders ongoing support with growth, HR, market expansion, and more. Bitpanda, GoStudent, Wayflyer, Open, CoachHub, Schüttflix, TourRadar, Adverity, and TWAICE are among our portfolio of 300+ companies. Learn more at www.speedinvest.com.
