Percent, a modern credit marketplace, has received an investment from Nomura Strategic Ventures’ debt fund.
The size of the investment was not revealed.
As traditional investment lines are taking a hit during the current economic troubles, venture debt is expected to excel. Venture debt in the US totalled $17.1bn for H1 2022, up nearly 10% on the previous years, according to PitchBook Data.
This growth is only expected to continue. Preqin forecasts that the broader private credit market will more than double to $2.69trn by 2026. This will make it the second-largest private capital asset class.
Percent is positioned to meet this growth. It has modernised the industry by bringing public market efficiencies to private debt markets through its technology. By powering the sourcing, structuring, syndication, surveillance, and servicing of private credit transactions from beginning to end, it helps participants work more efficiently and transparently.
Founded in 2019, Percent has closed over 390 deals, to-date, and powered over $1bn in investments on its platform. The historical average APY for investments on Percent’s platform is 12.48%, but it is currently 14.91%.
Percent founder and CEO Nelson Chu said, “Our strategic initiatives will help unlock the potential of the platform that we have built thus far and help realise our long-term vision to modernise private credit markets. Prior to Percent, transaction parties relied on antiquated systems and disjointed processes to manage the lifecycle of a private credit deal.
“As we further expand into the venture debt asset class, we are thrilled to be working with the Nomura team as both an investor in Percent and as a potential user of our cutting-edge platform.”
The FinTech company, which was formerly known as Cadence, previously raised $12.5m in its Series A funding round. Star Capital, B Capital, Revel Partners and Recharge Capital.
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