Madrid-based FinTech company, Fence, has raised €1.8 million in its pre-seed financing round.
The round was led by Semantic.vc and saw participation from various venture capital firms including Crane Earth, Actyus, and a group of prominent business angels, according to a report from EU-Startups.
The funding round was oversubscribed, receiving four million commitments. This strong investor interest underscores the potential of Fence and its innovative approach in the FinTech sector.
The new capital will be strategically utilised for further development and technology enhancements. Additionally, it will support the expansion of Fence’s operations across Europe, catering to banks, private debt funds, and other FinTechs. To support its ambitious global expansion plans, the company aims to double its Madrid-based team by the end of the year.
Founded in 2023 by Juan Montero, Ignacio Rosario, and Gonzalo Bandeira, Fence has rapidly established itself as a key player in transforming debt management. Its technological prowess was recently showcased in facilitating a significant financing agreement of up to €20m between BBVA Spark and Payflow.
Juan Montero, CEO of Fence, elaborated on the company’s approach: “At Fence we use blockchain smart contracts to automate capital and asset transfers. These smart contracts also guarantee compliance with specific clauses of credit agreements, such as the concentration limits of the financed portfolio. Our mission is to make it possible for companies to integrate debt into their technological stack, allowing them to automate its management, something essential in an increasingly digitalized world.”
Fence’s innovative SaaS platform is designed to revolutionize debt management for asset financing. Through its API integration, investors gain access to real-time debt information, thereby enhancing decision-making processes. Financed companies also benefit from significant cost savings, with up to 80% reduction in typical operation costs due to automation of operations, payments, and reporting.
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