TreasurySpring Raises $10M to Democratize Access to Fixed-Term Funds

TreasurySpring Secures $10 Million Series A Funding

Fintech startup TreasurySpring is expanding access to its ‘Fixed-Term Funds’ platform following a successful $10 million Series A investment. The funding round was jointly led by MMC Ventures and Anthemis Group, with participation from existing investors like ETFS Capital. This brings the total capital raised by the company to $15 million.

Expanding Access to Cash Investments

TreasurySpring’s FTF platform provides institutions holding substantial cash reserves with online access to a diverse selection of proprietary cash investment opportunities on a daily basis. This access is typically restricted to major financial institutions, and the platform aims to democratize this asset class.

The Fixed-Term Funds are designed to allow all types of institutions to invest surplus cash into markets historically dominated by banks and other large financial players. These FTFs offer a wide array of low-risk cash investment choices spanning the banking, governmental, and corporate sectors.

Company Growth and Future Plans

Established in 2016 by Kevin Cook (CEO), Matthew Longhurst, and James Skillen, TreasurySpring has experienced significant growth. Cook stated that after a year of tenfold growth in Assets Under Management (AUM), the company sought investment partners to support its ambitious expansion plans.

He further expressed admiration for both Anthemis Group and MMC, and excitement about collaborating with Sean, Ollie, and their teams as the company enters its next phase, focused on redefining cash investment and front-office treasury management.

Addressing Current Market Conditions

In the context of prevailing low and negative interest rates, coupled with global financial uncertainty, TreasurySpring’s platform presents a compelling alternative to conventional bank deposits and money market funds. The company reports having issued over $9 billion in FTFs to a diverse clientele.

This client base includes companies listed on the FTSE 100, other publicly traded entities, sizable private companies, charitable organizations, and family offices.

Investor Perspectives

Yann Ranchere, a partner at Anthemis Group, highlighted TreasurySpring’s dedicated team and its role in broadening participation within the traditional money market industry.

Oliver Richards, partner at MMC Ventures, affirmed his confidence in the team’s ability to realize their vision of leveling the playing field in cash investing and short-term funding. He emphasized the platform’s value to both clients and issuers, as well as its potential to enhance diversification and systemic stability within money markets.

Competitive Landscape

TreasurySpring asserts that it currently lacks direct competitors. However, the company acknowledges that bank deposits and money market funds remain the primary options for most institutions with large cash holdings.

Therefore, banks and asset managers offering these products are considered competitors, albeit also potential collaborators in certain instances.

Driving Factors for Platform Adoption

Cook explained that the increasing adoption of the platform is driven by a growing awareness of the diminishing attractiveness of traditional deposit and money market fund options. He also noted the complexity, time consumption, and expense associated with establishing alternative infrastructure.

He stated that building out such infrastructure is often cumbersome and presents significant challenges for organizations.