By
Godfrey Benjamin
February 7th, 2024
Through its margin lending offerings, Tesseract is able to help its clients, most of which are institutional investors, to maximize their capital.
Helsinki-based financial services and investment management innovator, Tesseract has conducted its Series A fundraising, pulling as much as $25 million from investors. According to the announcement made by the company, the funding round was oversubscribed and was lead by Augmentum Fintech.
Other key participants in the round include global venture capital firms BlackFin Capital Partners, Concentric, DN Capital, Jabre Capital Partners Family Office, LeadBlock Partners, Sapphire Ventures, Coinbase Ventures, Wintermute, Woorton, and Tesseract’s long time investor, Icebreaker.vc. The robust participation in the funding round shows investor’s affinity for the growth prospects on offer by Tesseract, whose focus is on bridging the gap between traditional finance and the crypto ecosystem.
The world of digital currencies has seen meteoric growth in the past decade, and more importantly, in the past 12 months. While the growth of the ecosystem was championed by retail investors in the early days, the past year ushered in a growing number of institutional participation in cryptocurrency-related activities. Based on these dynamics, Tesseract debuted its core products which focus on margin lending, OTC lending, partnerships with retail trading platforms, and decentralized finance (DeFi).
Through its margin lending offerings, Tesseract is able to help its clients, most of which are institutional investors, to maximize their capital.
“This funding is a significant milestone for Tesseract and one of the largest Series A investments in Finland to date,” said Yichen Wu, CEO, and founder of Tesseract, adding “The funding will be aimed towards developing our industry-leading institutional offerings even further, hiring new talent to develop new and existing partnerships, and to boost innovation in new undisclosed financial products. We will also focus on developing our cross-trading venue margin lending platform, which has seen enormous uptake in the past year.”
According to Yichen, the investors secured are essential in providing their expertise in helping the company fulfill its goals and “add significant value beyond the raised funding.”
Tesseract Funding Round to Aid its Competition in a Unique Niche
Institutional investments in digital assets are still very low compared to other aspects of traditional asset financing. Corporate funding is currently at about 10%, with a projection to rise to 30% by 2025. The potentials for growth in its niche market has influenced Tesseract’s rise with over 20x growth year on year and team size growing from three to over twenty. The company has notably been profitable since the beginning of 2020, showcasing an appropriate business model and administration.
“We are witnessing wholesale changes in the infrastructure supporting the crypto space as it evolves to the demands of increasing institutional activity. Following the separation of custody and trading in the first waves of evolution, Tesseract is addressing the next fundamental need in a space that has limited leverage capabilities,” said Martyn Holman, Partner at Augmentum Fintech.
The participation of institutional investors will help accelerate the journey of digital assets into mainstream adoption. Tesseract understands this trend and is committed to offering the right products and services to get these types of clients appropriately engaged.
