TreasurySpring has secured $29 million to grow its fixed-term fund (FTF) platform.
The firm plans to increase its headcount by 50%, adding to its product, sales and marketing teams; develop its products and services; and accelerate its international expansion, according to a Monday (June 26) press release.
The company delivers cash investments through a digital portal, allowing institutions that are holding large excess cash balances to “minimize risk, maximize return and optimize time,” according to its website.
TreasurySpring helps issuers like global banks and corporations diversify their funding sources and lower their financing costs, the website said.
“For too long, the importance of cash has been overlooked by many operating businesses and investors alike,” TreasurySpring CEO Kevin Cook said in the release. “As rates have begun to rise across the globe and crises have once again started to permeate the banking sector, companies of all sizes have woken up to the benefits of diversification, security and attractive risk-adjusted returns.”
The company’s Series B funding round comes two years after a Series A in which it raised about $9 million.
When announcing that funding round, TreasurySpring said in a June 2021 blog post that its founders aimed to “rewire” the cash investment and short-term funding markets that hadn’t seen much innovation in 50 years.
“Maybe we were mad, but we always had absolute faith in our plan to build a standardized, regulated, digital platform to simply deliver the best available cash investments to all firms holding large cash balances, irrespective of their size, location, sector, expertise or market connectivity,” the firm said in the post.
Bank risk and treasury management have risen to the forefront of the minds of chief financial officers (CFOs) among historic levels of inflation, rising interest rates, dwindling access to financing and ongoing black swan events, Priority Technology Holdings CEO Tim O’Leary told PYMNTS in an interview posted in May.
“It shouldn’t be new, but companies need to think about their own cash management and balance sheet strategies to ensure diversification and the right match of assets and liabilities so liquidity doesn’t dry up and there is no single overexposure,” O’Leary said at the time.
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