British startup Tradeteq has raised $6.3 million in a seed extension funding round led by ADV. The company intends to use the money to further develop its marketplace platform that connects trade finance originators with institutional investors.
Founded in the UK in 2016, Tradeteq wants to establish trade finance as an alternative asset class, said Christoph Gugelmann, co-founder and CEO of Tradeteq. It offers a set of tools for trade finance originators and investors to make transactions transparent and efficient.
“The global trade finance market is worth $12trn USD annually, which is largely managed by banks and currently isn’t an investable asset class for institutions,” said Mike Dimelow, CIO at ADV. “Tradeteq want to change all that and so are bringing Artificial Intelligence to the market through a marketplace platform which should open up trade finance to a more diverse set of companies than traditional credit scoring models do, expanding the market and enabling institutions to provide capital to emergent and fast-growing SME/SMBs.”
This is Tradeteq’s second round of funding, coming months after it closed a seed round from GTR Ventures in March 2018. Since then, the company opened an office in Singapore to expand in the Asia Pacific region.