Spanish FinTech company Fence has reportedly raised 1.8 million euros (about $2 million) in its pre-seed funding round.
The firm will use the new funding to develop its software that automates and optimizes debt-to-asset financing operations, EU-Startups reported on Monday (20 November).
Fence did not immediately respond to PYMNTS’ request for comment.
One of the key features of Fence’s offerings in the debt management space is the use of smart blockchain contracts to automate capital and asset transfers, ensuring compliance with specific clauses in credit agreements, according to the report. This integration of debt into their technology stack allows companies to automate debt management, a crucial aspect in an increasingly digitized world.
Fence’s innovative solution comes in the form of a Software-as-a-Service (SaaS) platform that provides investors with updated, real-time information about debt, the report said. Companies using Fence’s platform can save up to 80% of the usual costs associated with debt operations, thanks to the automation of processes, payments and reporting to investors.
Current users of the solution have praised the impact of Fence’s technology on debt management, the report said.
Benoit Menardo, co-founder of Payflow, highlighted the value provided by blockchain through Fence’s platform, according to the report. Payflow was able to save more than 25% in interest by accessing debt on demand. In addition, the automation of reconciliation allowed the company to meet information and payment plan requirements of investors without expanding its team.
With the successful pre-seed funding round, Fence plans to further invest in development and technology, according to the report. The company aims to expand its operations to serve more financial institutions and FinTechs across Europe. To support its global expansion plans, Fence will double its team based in Madrid by the end of the year.
The company’s pre-seed funding round was led by Semantic.vc and saw participation from Crane Earth, Actyus and business angels, the report said.
In another recent funding round, Siena said on Friday (17 November) that it has raised $4.7 million to continue building its autonomous artificial intelligence (AI) solution for customer service.
A day earlier, on Thursday (November 16), Amsterdam-based grocery app Crisp said it has raised $37 million to improve its seasonal/local food-focused delivery service.