TreasurySpring raises $29 million to expand its investment platform, targeting businesses with excess cash

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By Webdesk

Of the many problems brought to the fore by the collapse of Silicon Valley Bank, a big one was the liability of having too much cash in too few bank accounts. Today, a London startup called TreasurySpring — which has built a platform for companies to put some of their cash reserves to work, into investments — is announcing $29 million in funding to expand its products due to strong interest in its services.

The financing, a Series B, is being led by Balderton Capital, which also includes new financier Mubadala Capital and previous financiers ETFS Capital, MMC Ventures and Anthemis Group. Previously, the company had raised around $13 million, and partial details of this latest round (£15 million to be exact) leaked last week. We now understand that the full round of $29 million includes both primary and secondary funding, valuing the startup at nearly $100 million.

Before founding TreasurySpring, the three co-founders Kevin Cook (CEO), James Skillen (CTO) and Matthew Longhurst (COO) cut their teeth working in hedge funds, asset management and investment advisory and it was that experience, Cook said, that brought them the idea of ​​building a platform to help companies better manage their cash reserves.

The challenge is well known in the business world: large entities typically have better access to services than smaller organizations. In this case, the three saw that corporate treasury departments typically partnered with major investment banks to invest their cash reserves in different ways, but for companies that aren’t the largest in the world, there weren’t any routes to the same thing, so the answer was to build a platform that could help them manage their money in similar ways.

To be clear, TreasurySpring’s clients aren’t exactly small. On average, they have between $5 million and $10 million in cash reserves, and they include FTSE 100 companies and other multinationals, as well as startups that are scaling up, as well as charities. Some of them include retail giant Sainsbury’s, Schroders, dairy giant Muller, Hg, Bunq, Lendable and Tide. In total, there are already some 250 using the platform, with another 100 currently on board, the company says (part of the wave of interest that fueled this round).

The platform, meanwhile, is built to hold some 600 standardized cash investment products, tapping into seven currencies across three main categories: governments, corporates, and banks such as Goldman Sachs, Barclays, and Societe Generale. Just as consumers have been given a range of ETFs to give them access to investment portfolios they may not have had access to before, TreasurySpring in this case offers FTFs: fixed-term funds that it describes as “standardized and regulated” and focused on packaging and making different investment options more accessible to the treasury teams.

Cook said the company has been growing steadily for years – it was founded in 2017 – but the recent crisis at SVB and subsequent problems at Credit Suisse really put TreasurySpring “on the radar”.

“When it comes to the money you have in your business, you need to know where it is and that you’re not over exposed,” Cook said, “and second, you want to maximize every possible return on that money.” With interest rates now only around 5-6%, deposit accounts still don’t offer great returns, and “if you’re not getting the most out of your money, you’re in arrears.”

That said, there is still a lot of work to be done to build out what is effectively a new market sold to a clientele that is risk averse by nature, it seems. (There are indeed few competitors here: Flagstone is another player in a similar field, though it focuses on high-yield savings accounts.)

“It took them years to build the product, and I loved the resilience of the team,” says Rob Moffat, the partner at Balderton who led the investment. “But now it’s about going to market. How do you get treasurers to buy something new? Do you really want to be the first treasurer to buy a new capital product?”

However, Cook is optimistic about what he sees as an obvious opportunity.

“Largest settings [collectively] have several billions in cash,” he said, “and the common thread among them is that while they may be long on excess cash, they are short on time and expertise.”

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