Fence, a technology platform rebuilding infrastructure for asset-backed finance, has secured $20m in a new funding round led by Galaxy Ventures.
The oversubscribed raise also saw participation from seed investors ParaFi Capital and Crane Ventures Partners, formerly known as MassMutual Ventures, both of whom reinvested within months of Fence’s previous seed round. The fresh capital will be directed towards accelerating the company’s expansion into the US market, growing its engineering team, deepening product capabilities, and integrating AI-driven automation. As part of the expansion, co-founder and CEO Juan Montero will relocate to New York to lead the growth of the company’s NYC-based team.
Fence has been developed to serve the $15tn asset-backed finance market, which the company describes as slow, opaque, and operationally inefficient. The platform replaces traditional trust and agency providers — including verification, calculation, collateral, and paying agents — that sit between borrowers and lenders in asset-backed finance transactions. These intermediaries have long depended on manual processes, spreadsheets, and siloed systems, leaving much of the industry still conducting business via email.
Since going live, Fence has grown to $1.5bn in assets under administration across active facilities, with backing from institutions including BlackRock, Fortress, i80 Group, and BBVA. The platform is capable of processing tens of thousands of loans per second and can onboard new facilities within weeks. In one live facility with BBVA, Fence enabled near-instant drawdowns multiple times daily — a process that had previously taken place weekly or monthly — whilst simultaneously monitoring hundreds of thousands of transactions each month in real time.
Fence’s smart-contract-based platform operates as a unified, software-driven system that verifies assets, calculates borrowing bases, enforces covenants, and moves cash and collateral programmatically in real time. Clients can deploy Fence for a single function or consolidate all roles into one continuous system. According to the company, live facilities have seen borrowing costs fall by up to 40% and operational overhead reduced by as much as 80%, alongside full real-time visibility into underlying assets, continuous cash reconciliation, and live covenant tracking. Looking ahead, the company intends to position itself as foundational infrastructure for a new generation of debt capital markets — one it describes as global, programmable, and increasingly automated.
Fence co-founder and CEO Juan Montero said, “Asset-backed finance is the backend of the real economy, but it still runs on PDFs, spreadsheets, and email threads. Lending has been transformed over the last decade including underwriting, origination, and risk management. However, debt capital markets, the layer that actually funds lending operations, has not kept up technology-wise with the rest of the sector. Capital providers want control, but nobody wants the operational burden. Fence provides real-time transparency, automated execution, and infrastructure that actually scales.”
Galaxy Ventures general partner Will Nuelle said, “Structured credit has operated for decades on infrastructure that was never designed for today’s velocity or complexity. What Stripe did for payments, Fence is working to do for debt capital markets. Fence is not layering software on top of a broken system, they are rebuilding the system itself. Their approach to real-time verification, programmable cash flows, and institutional-grade execution represents a step change for asset backed finance, in our view.”
Montero said, “Others digitize the paperwork. Fence rebuilt the plumbing. The data that verifies the asset and the collateral is the same data that moves the money. That’s where the real value is. Originate an asset, sell it immediately, recycle capital. That is what debt capital markets look like when the infrastructure actually works.”
Montero said, “We’re building the rails for how debt capital markets will operate going forward. Not just making the current system more efficient, but preparing for a future where capital moves in real time, risk is fully transparent, and financial infrastructure is truly internet-native.”
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