Trade finance innovator Marco Financial raises $12m


Marco Financial has recently completed a significant milestone in its journey to support SME exporters in Latin America.

Founded in 2020 by entrepreneurs Jacob Shoihet and Peter D. Spradling, Marco has swiftly become a cornerstone in the trade finance arena, employing a team of over 50 people across its offices in Miami, New York City, and Montevideo, Uruguay.

The platform has successfully closed a $12m Series A funding round. This financial infusion was led by IDC Ventures, with contributions from a variety of investors including IDB Lab (the innovation and venture laboratory of the Inter-American Development Bank Group), Barn Invest, SquareOne Capital, Arcadia Funds, Florida Funders, Miami Angels, Kayyak Ventures, and Neer Ventures, among others.

Marco stands out in the financial landscape by offering a comprehensive operating system for Latin American SME exporters. The company aims to bridge the $350 billion trade financing gap in the region, providing fast, easy access to financing and a suite of services designed to tackle the unique challenges faced by SMEs. These services include LLC formation, bookkeeping, FX payouts, cargo insurance, and banking services, thereby supercharging SMEs in trade and creating an inclusive economy.

The newly acquired funds are earmarked for expanding Marco’s innovative suite of solutions, which includes everything from financing to compliance and beyond. This investment will enable Marco to serve a segment that has historically been underserved, leveraging advanced, proprietary risk models to dynamically mitigate capital loss.

Moreover, Marco’s approach to trade finance has already shown significant impact, having funded over $540m in cumulative volume across more than 63,000 receivables against primarily investment-grade debtors since its inception. The company also plays a crucial role in the trend of nearshoring, as Mexico now exports more to the US than China for the first time since 2003.

This funding round not only solidifies Marco’s commitment to transforming the trade finance sector in Latin America but also strengthens its dedication to environmental, social, and governance (ESG) efforts within the region. With the support of IDB Lab, Marco is poised to launch new sustainable initiatives aimed at reaching the most underserved segments of the LatAm SME market.

Jacob Shoihet, co-founder and CEO of Marco, expressed his excitement about this new phase of growth, acknowledging the crucial support from investors who believe in Marco’s mission. Similarly, Peter Spradling, co-founder and COO, shared his personal journey as an SME exporter and the challenges he faced in securing financing for growth. This personal experience underscores the importance of Marco’s mission to change the risk perception associated with SMEs and streamline operations for growth in cross-border trade.

Marco’s previous investments were not mentioned, indicating this Series A round as a significant step in their fundraising efforts.

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