Lead investor Bain Capital Ventures joined by Haystack, Nine Four Ventures, TwentyTwo VC, and Y Combinator
SAN FRANCISCO, June 14, 2021 /PRNewswire/ -- Finley, the debt capital raise and management solution, has announced a $3 million seed round led by Matt Harris and Kevin Zhang of Bain Capital Ventures, with participation from Haystack, Nine Four Ventures, TwentyTwo VC, and Y Combinator. It will use this funding to accelerate its product development with early customers like Ramp.
Debt capital, an asset class larger than venture capital, continues to fuel growth and attract investment across all industries. Private credit, in particular, is poised for rapid growth, with JPMorgan reporting that two thirds of all investors intend to increase their investment in private credit in coming years. Despite this growth, debt capital management remains manual, opaque, and error-prone, a problem that Finley aims to solve with software.
"In capital markets, credit is clearly having a moment," said Matt Harris, Partner at Bain Capital Ventures. "Low costs and creative products are driving enthusiastic borrower adoption, whether by startup teams financing lending, real estate, equipment and other assets, or corporate treasury executives adopting an alternative to bank finance. This is an exciting moment for us to partner with the Finley team, who have the right experience, vision, and timing for a modern transaction, reporting, and management software for the future of debt capital markets."
Entrepreneurs wake up to importance of debt capital management
Traditionally, companies have managed debt capital by hiring teams of analysts and lawyers to track and monitor credit agreement compliance. These teams rely on legacy tools not designed for legal or financial analysis, which makes their work both resource-intensive and error-prone. As companies grow, the cost of manual debt capital management can reach into the millions of dollars and jeopardize profitability—especially if companies have multiple credit facilities or sources of funding.
"Business leaders are waking up to the importance of debt capital. When I was a debt investor at Goldman Sachs, I saw that debt capital management was an existential issue for high-growth companies," said Jeremy Tsui, co-founder and CEO of Finley. "Our job at Finley is two-fold: educate companies on what's at stake, and build software that enables them to take control of their own growth."
A complete solution for companies with mission-critical debt capital needs
Finley also announced the public launch of its credit facility management software, which enables customers to manage credit facility compliance and reporting tasks without bringing on additional capital markets or data engineering personnel.
"Finley has automated daily capital provider reporting on our $150 million credit facility with Goldman Sachs," said Eric Glyman, co-founder and CEO of Ramp, a spend management startup that was recently valued at $1.6 billion. "When we looked for off-the-shelf software solutions that could meet our needs, we couldn't find one that could handle the nuances of our credit agreement. Finley is an exceptional solution, helps us minimize risk, and saves our finance and engineering teams dozens of hours a month."
Today, customers in industries ranging from finance to real estate rely on Finley to track all the rules of their credit agreements, automate capital provider reporting, and ensure capital access.
For more information on Finley and its recent seed fundraise, please visit https://www.finleycms.com and https://www.finleycms.com/announcing-our-seed-fundraise.
Finley simplifies debt capital raise and management. The company's software helps growing companies automate due diligence, ensure compliance, and streamline ongoing reporting with their capital providers. The founding team brings experience from Goldman Sachs, Nova Credit, and Palantir Technologies, and is backed by Bain Capital Ventures and Y Combinator.
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SOURCE Finley Technologies, Inc.