Galaxy Ventures, the venture capital division of Mike Novogratz's Galaxy Digital, has led a $20 million funding round for Fence, a company developing software to streamline the operational aspects of structured credit deals. This investment aims to transform the $6 trillion asset-backed finance market by replacing manual workflows with a single, real-time data updating system.
Fence's platform allows lenders to continuously monitor loan performance and cash flows, reducing transaction times and increasing investor visibility. The company has reported lower funding costs for borrowers and reduced operational work in deals with major banks like BBVA. By utilizing blockchain and smart contracts behind the scenes, Fence provides a more efficient and cost-effective solution for asset managers.
The company has overseen approximately $1.5 billion in assets across its platform, working with prominent firms such as BlackRock and Fortress, and plans to expand its presence in the US and further develop its product with the newly acquired funding.