Cadence Group, a FinTech securitization platform, has closed a $4m round in conjunction with the launch of a new Dutch auction for new investments.
The auction system which is used by US Treasuries and other institutional debt markets, enables investors and originators to determine a market-clearing APY desirable to all parties. Through its new Dutch auction, the FinTech is opening up to the private credit market.
This system will also boost the transparency of the Cadence platform by giving investors the ability to express their risk tolerance levels.
To support the release of the service, the FinTech closed a $4m seed round which was led by Revel VC. Additional contributions came from Morgan Creek Digital, Nimble Ventures, Argo, Tuesday Capital, Manatt and Recharge Capital.
Richard Parsons, a former chairman of Citi, also invested into the FinTech, leveraging his early-stage venture capital firm R&R Venture Partners.
“Securitization hasn’t seen true innovation in decades,” Parsons said. “Finally, a new wave of FinTech companies has made the ability to capture and synthesize data easier. Cadence has positioned itself at the centre of that wave, harnessing data to provide a level of transparency and efficiency that has simply never been possible before. We believe Cadence has the opportunity to fundamentally transform securitization for the better.”
Founded in 2018, Cadence offers finance originators to streamline the securitization process.
In conjunction with the round, former president of E*Trade Navtej S. Nandra, DFG Investment Advisors CEO Oliver Wriedt and Revel VC general partner Thomas Falk have all joined the Cadence board of directors.
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