Author: gtrventures

Investors: how will you leverage the expected growth of the trade finance market?

By Christoph Gugelmann

A new study by Technavio came out at the end of May, stating that the global trade finance market would grow at a compound annual growth rate of 3.75% between 2018 and 2022. The prediction is based on market analysis with inputs from industry experts including key financiers like BNP Paribas, Citigroup and HSBC, amongst others.

Despite an increase in protectionist rhetorics, trade flows are forecast to grow by 4.3% a year, reaching nearly US$19tn by 2020, according to the 2017 ICC Trade Register. In the same report, the ICC points out that trade finance revenues are expected to reach US$44bn by 2020, based on growth projected in markets where trade is conducted to a significant degree on the basis of traditional trade finance.

The numbers are clear: the trade finance market is on an upward trajectory – one that no one in the financial sector can afford to miss.

Unsurprisingly, the trend of rapid technological advances has been identified as a key trend driving this market growth. “Technological advances boost the increased automation and standardisation of trade financing transactions. This reduces the risk of manual transactions,” a Technavio analyst comments in the firm’s study.

In particular, the involvement of clearing houses as intermediaries between buyers and sellers of financial instruments are seen as crucial to growth by the authors. Such intermediaries are making transactions safer, but also more investable.

More and more trade finance players are investing in fintech platforms that can streamline and facilitate their processes, but also allow them to distribute parts of their trade finance portfolios to other banks and institutional investors, as a way to maximise the opportunity.

There is a recognition in the market that trade finance assets are attractive to investors, since they present a lower default risk than many other asset categories. Yet, distribution to institutions other than banks remains rare. Why is that? Various surveys cite a lack of standardisation, fear of non-compliance to regulations and the low efficiency of transactions (which so far have mainly been conducted on an isolated basis) as reasons why investors are still rarely present in transactions.

All these obstacles can be overcome with the use of technology such as artificial intelligence and machine learning, which are already operational in many sectors – including credit analytics. The emergence of new platforms increasing the transparency and efficiency of trade transactions, combined with the expected growth of the sector in coming years, means there has never been a better time for institutional investors to get involved.

To learn more, visit https://www.tradeteq.com/insights

Can tighter oversight rein in risks in Singapore’s booming invoice finance market?

The industry’s unregulated nature renders investors vulnerable as revealed by a massive S$6.9m fraud case.

Investors are treading more cautiously after an unravelling $6.9m sham at a Singapore crowdfunding site laid bare the vulnerabilities and risks associated with an industry promising quick returns to growth-hungry SMEs.

The move comes as a local news report revealed that invoice financier Capital Springboard sold around 60 fake invoices worth $6.9m to investors from Vangard Project Management (VPM), an SME specialising in interior design.

Cautionary tale
As the lion city throws open its doors to SMEs with the hopes of driving innovation and attracting international talent, a number of financing methods have similarly cropped up to meet the various capital needs of growing businesses. Obtaining financing has been cited as the fourth greatest growth challenge hounding startups, ceding only the top spots to chronic manpower problems and limited market size, according to a report from NUS Enterprise.

From venture capital and angel investing to traditional business loans to various incubator and accelerator programmes, invoice financing has emerged as another viable funding method for cash-strapped SMEs.

Invoice financing enables businesses to secure cash by leveraging against the value of payments they are owed from their customers for an agreed return to investors, providing them with instantly available capital to pursue further growth opportunities. Investors assume the cost of between 70 to 90% of a business’ total invoices which works best for short period of time ranging from two weeks to a year.

Higher flexibility, easier access to funding and speedier funds provision as opposed to traditional banking loans are invoice financing’s greatest strengths, Dimitri Kouchnirenko, founder and CEO of online multi-currency invoice exchange platform Incomlend told Singapore Business Review.

“Businesses with tight cash flows due to large receivables or long credit terms from customers usually utilise this product. Historic or existing cash balances do not matter as much as repayments are secured via payment on invoice,” added Pawel Kuznicki, CEO of peer-to-peer and invoice financing platform Capital Match.

Whereas it would take months for a traditional lender to review a facility limit, invoice financing can disburse funds often within 24 hours and borrowers often have little to no collateral to provide, Kouchnirenko added.

“A rising rate environment also makes it difficult for SME’s to acquire funding through traditional methods such as the banks and the scrupulous vetting procedures generally expose fundamental flaws in the SME’s structure,” explained Oriano Lizza, a sales trader at CMC Markets.

This means that the method arguably carries less risk of default for lenders than short-term financing as the borrower has already delivered to its customers amidst reasonable expectations of being repaid.

However, the method is not entirely without risk as the unraveling fraud with Capital Springboard revealed, especially as VPM’s invoices with CS were non-notified in nature. An invoice financing of this type means that the SME did not inform its customers of its working relationship with platforms like Capital Springboard including the fact that it was tapping the financier for its funding needs.

This method of invoice finance inherently raises the risk premium, noted Kouchnirenko, as the lender is left with little option to verify the authenticity of the invoice as it is not able to confirm it directly with the buyer.

“Most often this could lead to the lender being exposed to fraud. Due to its highly risky nature, not only does it increase the probability of fraud but it also raises the risk premium hence the cost of financing for the borrower,” the Incomlend founder pointed out.

Capital Match’s Kuznicki similarly suggested that, whilst non-notified invoice financing is more troublesome in terms of verification, the platform is able to verify invoices as well as provide supporting documents including certified delivery orders and progress claims with the buyer to guarantee that the financing is backed by a legitimate invoice where the work has already been completed, although this is not necessarily practiced by all lenders in the market.

Regulation and risk management
The recent fraud that took place calls attention to the relatively unregulated nature of the industry that has allowed fraudsters to slip to the cracks and take advantage of a legitimate funding method that has provide the necessary financing fuel for countless businesses in the past.

Although demand from SMEs for invoice financing has not dampened significantly, investors are proceeding with more caution amidst calls for greater oversight to prevent similar lapses in the future.

“It could be argued that a Monetary Authority of Singapore regulated company would not have got[ten] this far or even set up in the first place,” explained Lizza. “The market is somewhat regulated but not completely so this leaves it open to exploitation and abuse.”

With this case as the catalyst, MAS could possibly proceed to reduce the number of new market entrants or intensify its regulatory reach and set more stringent risk management standards to set a precedent for similar cases in the future.

Although the number of approved funding applications may diminish in the short term as a result of intensified regulatory scrutiny, the industry is poised to benefit in the long run from common basic standards and practices in place to ensure the stability and transparency of the funding process, Kouchnirenko added.

Crowdfunding platforms are similarly doing their part by ramping up their risk management capabilities. Carrying out regular background checks on borrowers, scrutinising new applicants and creating a shared database of blacklisted borrowers between platforms and traditional lenders can also do wonders to avoid multiple finance for the same receivable title, he added.

“Different lending platforms are communicating, albeit unofficially, to ensure errant SME owners are blacklisted by the various credit teams,” said Kuznicki.

For Kouchnirenko, the case is not only a timely reminder of the pitfalls of investing but also an opportunity to improve funding methods for SMEs.

“We think that the industry will be called upon coming together to improve collaboration, risk management measures and common standards. This event is an opportunity for everybody to re-think and improve the industry’s working practices and we are confident this will happen.”

This article first appeared in Singapore Business Review.

A new way to play trade

By Global Trade Review

GTR Ventures is a new investment firm formed in partnership with GTR, investing in the equity of trade technology companies and underlying trade finance debt. Here, Kelvin Tan, CIO of GTR Ventures, discusses the global opportunities in trade investment and how he hopes GTR Ventures will create value.

 

What does GTR Ventures bring to the table that’s different?

Tan: We saw an opportunity to leverage GTR’s unique and huge global trade finance intelligence hub to bridge the gap between capital, technology and investment. As a global funnel for origination, information and distribution, GTR Ventures addresses two big challenges for investors and bankers: we can find good deals and are also able to sustain a pipeline of good deals to match optimal capital deployment.

 

Why now?

Tan: The global trade game is changing for all stakeholders and at a pace faster than we in the trade world ever anticipated. We see the governments, corporates, banks, insurers and investors we deal with globally coming to terms with disruption in an industry that has not meaningfully changed for decades. The unified system built around established rules and relationships is giving way to decentralisation, digitalisation and derisking; technology solutions are blooming, new sources of capital are emerging and trade corridors opening.

There’s a huge amount of innovation in this environment and opportunities for those playing it smart. Since our debut, we’ve set a blistering pace when it comes to engaging innovative companies in the trade sector. We’ve taken strategic stakes in some of them and are forming new partnerships and alliances.

 

How are you approaching your goal to bridge the gap between capital, technology and investments in trade? Where are you seeing opportunities?

Tan: We have been actively tracking non-bank trade lenders and platforms and shortlisting the ones who have sound credit assessment processes, good governance and potential to scale through the astute use of technology. In particular, digital lenders from markets such as the UK, France, China, Hong Kong and Singapore present interesting opportunities for investors and banking capital to access attractive returns from SME trade lending.

Post Brexit, we expect UK firms and entrepreneurs – as well as the government – will look to Asia’s fastest growing economies. After the 9th UK-China summit in December last year, the two countries announced plans for a UK-China US$1bn private equity fund, focused on connectivity deals under the Belt and Road Initiative.

 

What broader trends do you think are important in global trade?

Tan: We’ve thought a lot about this as we curate deals for our stakeholders in the global banking and investment community. We have five core beliefs about the future that guide our actions today.

First, the future of trade is digital, automated, backed by analytics and increasingly real time.

Second, technology and innovation can liberate liquidity within supply chains, lower credit risk for suppliers and improve global financial inclusion.

Third, bank lending is here to stay, while non-bank lending will play an increasingly large role – we see that with shipping lines and e-commerce now providing trade finance loans. Beyond equity capital, trade finance startups need debt capital to grow. This is particularly pertinent for digital non-bank lenders as they grow their loan books and diversify their base of borrowers, particularly to SMEs.

Fourth, private debt, comprising trade finance loans, will rise as an alternative asset class for investors looking for stable returns, portfolio optimisation and low volatility akin to investment grade bonds.

Finally, blockchain has potential multiple use-cases for trade, and can be disruptive; however, it should not be the starting point and raison d’être for any trade product offering, but as an enabler.

 

Kelvin Tan is the CIO of GTR Ventures following a career spent at IFC, Singapore’s ministry of trade and the Monetary Authority of Singapore (MAS). Visit www.gtrventures.vc

 

This article first appeared on Global Trade Review.

Global News Mail: GTR Ventures makes debut investments in Singapore trade-linked fintechs

Global News Mail

Tue, Mar 13, 2018

Singapore

GTR Ventures, the world’s first investment platform targeted at trade-related fintechs, has closed its first five investments, including in several Singapore fintechs that are taking aim at the US$5 trillion trade-finance gap globally.

It did not disclose the full valuation of each fintech, but the equity positions in the five companies collectively value them at around US$50 million, GTR Ventures said in a media release on Monday.

GTR Ventures is the venture capital arm of trade finance intelligence firm Global Trade Review, and has offices in Singapore, Hong Kong and London.

Singapore-based Kelvin Tan, chief investment officer of GTR Ventures, said that the founders behind these fintech firms are using technology and data analytics to mitigate risks, make lending more efficient, and close the trade finance gap.

“The global trade sector is transforming with digitisation and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade. Our vision is to work with these companies and build strategic first-mover stakes in the future of trade.”

The fintech companies collectively have helped to tie up more than US$160 million in trade loan deals since their inceptions.

They include Singapore-headquartered Culum Capital, which provides companies with working capital funding using trade finance solutions particularly in receivables purchase and supply chain finance.

Another is Singapore-based Trade Finance Market, a fintech that has developed a digital tool to reduce invoice finance fraud.

GTR Ventures said it is working on a “strong pipeline” of additional investments and expects to close five more deals and global partnerships in the next quarter.

This article first appeared on Global News Mail.

XueHua: GTR Ventures宣布首次对五家贸易领域的金融科技公司进行投资

Xue Hua

伦敦和新加坡2018年3月12日电 /美通社/ — 全球首个专门从事贸易和供应链业务的投资与创业支持平台 GTR Ventures,宣布首次对五家贸易领域的金融科技公司 — Tradeteq、Trade Finance Market、Culum Capital、eFundSME 和 Incomlend 进行投资。这些投资为后续的一系列强大交易拉开了帷幕。GTR Ventures 已经由此入股这五家公司,总值为5000万美元左右。

GTR Ventures首席执行官鲁伯特-萨伊尔和首席投资官Kelvin Tan(陈循奕)与五家贸易领域的金融科技公司的创始人,一起大胆重塑未来贸易

在这五家公司中,有四家是数字贸易借贷公司,还有一家是让机构投资者能够获得全球贸易工具的平台,自成立以来,这五家公司已经促成了金额超过1.6亿美元的贸易贷款交易。GTR Ventures 于2017年9月建立,将和这五家公司进行合作,并将通过全球拓展,开发新产品(例如贸易融资指数),以及接入全球数字贸易融资资产市场等方式,帮助发展他们的业务。

Tradeteq(总部位于英国)首席执行官克里斯托夫-古格尔曼(Christoph Gugelmann)说:“我们很高兴能够在 Tradeteq 继续发展的时候与 GTR Ventures 进行合作。这项合作将会帮助我们覆盖贸易生态系统中的所有参与者,加强我们在欧洲的基础,同时支持我们扩展进入包括新加坡、香港、上海和东京在内的亚洲市场。”

GTR Ventures 首席投资官 Kelvin Tan(陈循奕)表示:“全球贸易领域正在为数字化和数据驱动型基础设施所改变,而后者能够连接贸易实物和融资方面的各种参与者。Tradeteq、Trade Finance Market、Culum Capital、eFundSME 和 Incomlend 背后的创始人们利用技术和数据分析来降低风险,让借贷更为高效,弥合贸易融资上面的缺口,以此来推动这一变革。而我们的愿景是与这些公司进行合作,在未来贸易方面构建战略性的先发优势。”

GTR Ventures 首席执行官鲁伯特-萨伊尔(Rupert Sayer)则表示:“贸易领域的形势迅速改变为投资者带来了令人激动的机遇。正像我们首批投资交易所显示的那样,GTR Ventures 现在居于独一无二的有利地位,能够发现出色的投资项目,并能通过建立合作关系和联盟,打造将能塑造未来贸易和贸易融资的全球网络。”

GTR Ventures 正在进行一系列其它卓越投资,预计将在下个季度达成另外五项投资交易和全球合作。

贸易融资为年度金额达到16万亿美元的全球贸易提供支持,是一个新兴的专业性投资领域。不过,约有30%的全球贸易(金额约为5万亿美元)出现了资金不足的问题。这样的贸易融资缺口为债券和股权投资者带来了日益发展的良好机遇。贸易的投资回报传统上来自于债务资本提供方,而“贸易科技公司”的崛起为寻求实现业务多元化的私募股权和其他投资者带来了新的机遇。

This article first appeared on Xue Hua News.

Fintech Istanbul: GTR Ventures’dan ticari FinTech girişimlerine yatırım

Fintech Istanbul

14 Mar 2018 – Yatırım alan FinTech girişimlerinin isimleri şu şekilde sıralanıyor; TradeteqTrade Finance MarketCulum CapitaleFundSME ve Incomlend.

Crowd Fund Insider’ın haberine göre Eylül 2017’de Londra, Singapur ve Hong Kong’daki ofislerini açarak yatırım dünyasına adım atan GTR Ventures, küresel büyüme, ticaret finansmanı endeksleri gibi yeni ürünlerin geliştirilmesi ve dijital ticaret finansmanı için küresel bir pazar oluşturmaya çalışan girişimlere odaklanmak üzere yola çıktı.

GTR yetkilileri yaptıkları ilk açıklamada şu ana dek FinTech girişimlerine gerçekleştirdikleri yatırımların toplam 50 milyon dolar değerinde olduğunu belirttiler.

Yatırım alan girişimlerinden dört tanesinin şu ana dek küresel ticaret araçları sunarak 160 milyon dolar tutarında ticari kredi anlaşması sağlanmasına yardımcı olduğu açıklanan bilgiler arasında yer alıyor. GTR Ventures, önümüzdeki çeyrekte beş yeni anlaşma ve küresel ortaklık ile ek yatırımlar yapmayı ehdefliyor.

GTR Ventures CIO’su Kelvin Tan, “TradeteqTrade Finance MarketCulum CapitaleFundSME ve Incomlend’in arkasındaki kurucular; hizmet verdikleri işletmeler için riskleri azaltmak, kredilendirmeyi daha verimli hale getirmek ve ticaret finansmanı açığını kapatmak için teknoloji ve veri analizi kullanarak bu değişimi yönlendiriyor” açıklamasını yaptı.

Ticaret finansmanı çok büyük bir pazar oluşturuyor. Yaklaşık 16 trilyon dolarlık küresel ticaret hacmine sahip bu pazarda yenilikçi FinTech girişimlerinin pazarın dinamiklerini ciddi ölçüde şekillendirebileceği değerlendiriliyor.

 

This article first appeared on Fintech Istanbul.

Be Beez: GTR Ventures investe in cinque aziende trade-fintech

Be Beez

14 Mar 2018 – GTR Ventures ha annunciato i propri investimenti di debutto in cinque società di trade fintech – Tradeteq, Trade Finance Market, Culum Capital, eFundSME e Incomlend – valutandole collettivamente a circa $ 50 milioni. I dettagli finanziari di ciascun investimento non sono stati resi noti. Assumendo una posizione azionaria nelle cinque società, la società con sede a Londra, Hong Kong e Singapore ha annunciato lunedì che le operazioni sono state le prime in una solida pipeline di transazioni. Il “venture builder” ha inoltre aggiunto che prevede di chiudere altre cinque operazioni e partnership globali nel prossimo trimestre.

Le società recentemente finanziate – quattro istituti di credito commerciali digitali e una piattaforma per gli investitori istituzionali per accedere a strumenti di commercio globale – hanno facilitato oltre 160 milioni di dollari di contratti di prestito commerciale sin dal loro inizio. Tra le società, tre sono con sede a Singapore – eFundSME è un e-marketplace per il trading di fatture. Trade Finance Market (TFM) fornisce soluzioni alternative di finanziamento commerciale per le piccole e medie imprese e Culum Capital offre alle PMI di Singapore accesso al capitale circolante finanziato da investitori accreditati. GTR Ventures ha inoltre investito in Incomlend, che opera a Hong Kong e Singapore, uno scambio di fatture globale in cui le società di diversi paesi possono finanziare i loro crediti all’esportazione vendendoli a investitori privati ​​con uno sconto.

La quinta società a ricevere investimenti è la Tradeteq con sede nel Regno Unito che fornisce la rete collaborativa per investitori e creatori di finanza commerciale, per connettersi, interagire e negoziare. Lanciata a settembre 2017, GTR Ventures investe in società fintech specializzate nel commercio e si concentra su quattro principali aree di investimento: operazioni bancarie (finanza commerciale, tesoreria e cassa), assicurazione commerciale e gestione dei rischi, finanza e filiera delle PMI e commercio fisico.

La finanza commerciale, che sostiene un commercio globale annuale di $ 16 trilioni, è un’area di investimento emergente di nicchia. Tuttavia, circa il 30% del commercio globale, o $ 5 trilioni, è sotto-finanziato. Questo divario finanziario commerciale presenta una crescente opportunità per gli investitori in titoli di debito e di capitale. Mentre i guadagni dal commercio provengono tradizionalmente dai fornitori di capitale di debito, l’emergere di tecnologie commerciali rappresenta una nuova opportunità per il private equity e altri investitori che cercano di diversificare, ha detto una dichiarazione di GTR Ventures.

“Il settore del commercio globale si sta trasformando con la digitalizzazione e l’infrastruttura basata sui dati che collega diversi attori attraverso gli aspetti fisici e finanziari del commercio. I fondatori di Tradeteq, Trade Finance Market, Culum Capital, eFundSME e Incomlend, guidano questo cambiamento utilizzando la tecnologia e l’analisi dei dati per mitigare i rischi, rendere più efficiente il prestito e chiudere il gap finanziario commerciale “, ha dichiarato Kelvin Tan, CIO di GTR Ventures.

 

This article first appeared in Be Beez.

Morning Star: GTR Ventures announces debut investments in five trade FinTechs

LONDON and SINGAPORE, March 12, 2018 — GTR Ventures, the world’s first investment and venture-building platform specialized in trade and supply chain, has announced its debut deals with five trade FinTech companies — Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend. These deals are the first in a strong pipeline of transactions. GTR Ventures has taken equity positions in the five companies, collectively valuing them at around US$50 million.

Rupert Sayer, CEO, and Kelvin Tan, Chief Investment Officer, from GTR Ventures – boldly reshaping the future of trade, together with the founders of 5 trade fintechs.

The companies — four digital trade lenders and a platform for institutional investors to access global trade instruments — have facilitated over US$160 million of trade loan deals since their inception. Launched in September 2017, GTR Ventures will work with the companies and build their businesses including through global expansion, development of new products such as trade finance indices, and connection to a global marketplace for digital trade finance assets.

“We are excited to partner with GTR Ventures as Tradeteq continues to grow,” said Christoph Gugelmann, CEO of UK-headquartered Tradeteq. “This partnership will help us expand our reach to all players within the trade ecosystem and consolidate our European bases while expanding to markets in Asia, including Singapore, Hong Kong, Shanghai and Tokyo.”

Kelvin Tan, CIO of GTR Ventures said, “The global trade sector is transforming with digitization and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade. The founders behind Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend, are driving that change by using technology and data analytics to mitigate risks, make lending more efficient and close the trade finance gap. Our vision is to work with these companies and build strategic first-mover stakes in the future of trade.”

Rupert Sayer, CEO of GTR Ventures, said, “The rapidly changing landscape of trade presents exciting opportunities for investors. As our debut deals show, GTR Ventures is uniquely positioned to identify exceptional investments and, through partnerships and alliances, build a global network that will shape the future of both trade and trade finance.”

GTR Ventures is working on a strong pipeline of additional investments and expects to close five more deals and global partnerships in the next quarter.

Trade finance, which supports annual global trade of US$16 trillion, is an emerging niche investment area. However, some 30% of global trade, or US$5 trillion, is under-financed. This trade finance gap presents a growing opportunity for debt and equity investors. While returns from trade have traditionally come from providers of debt capital, the emergence of tradetechs presents a new opportunity for private equity and other investors looking to diversify.

About GTR Ventures (Contact: info@gtrventures.vc, website: www.gtrventures.vc)

Based out of London, Singapore, and Hong Kong, GTR Ventures is the world’s first investment platform dedicated to trade and supply chain. In exclusive partnership with Global Trade Review (GTR), the world’s leader in global trade and trade finance intelligence, publishing, news and events, GTR Ventures mobilizes private capital for trade and trade finance, investing in and supporting the development of trade-focused fintech companies (tradetechs) while working with multiple stakeholders to integrate technology into trade. GTR Ventures focuses on four main investment areas: transaction banking (trade finance, treasury, & cash), trade insurance & risk management, SME finance & supply chain and physical trade.

AboutCulumCapital (contact: enquiry@culumcapital.com, website: www.culumcapital.com)

Culum Capital is a Singapore-headquartered fintech which provides companies with working capital funding using trade finance solutions particularly in receivables purchase and supply chain finance. It is also an investment platform for investors seeking alternative investment opportunities. The company has a proprietary risk assessment and management system to ensure the quality of deals flowing through its platform.

About eFundSME (contact: enquiry@efundsme.com, website: www.efundsme.com)

eFundSME Global Pte Ltd is an e-marketplace for invoice trading, founded, owned and managed by industry veterans from Singapore. Its key management team comprises professionals from the banking industry with aggregate experience exceeding 100 years. The company leverages the power of online technology to transform trade finance for the mutual benefit of SME sellers and investor buyers.

About Incomlend (contact: info@incomlend.com, website: www.incomlend.com)

Operating in Hong Kong and Singapore, Incomlend is a global invoice exchange where companies from different countries can fund their export receivables by selling them to private investors at a discount. The platform trades in multiple currencies (USD, EUR, SGD, and HKD) and offers an integrated digital receivables discounting solution to both suppliers and buyers across its global supply chain, dynamic discounting and factoring products. Investors’ capital is protected against debtors’ credit risk by world leading credit insurers.

About Tradeteq (contact: Nils Behlingnbehling@tradeteq.com, website: www.tradeteq.com)

UK-headquartered Tradeteq provides the collaborative network for trade finance investors and originators, to connect, interact, and transact. Tradeteq delivers AI-powered credit analytics, reporting, investment and operational solutions. Tradeteq transforms trade finance assets into transparent and scalable investments.

About Trade Finance Market (contact: media@tradefinancemarket.com, website: www.tradefinancemarket.com)

Singapore-based Trade Finance Market (TFM) is a fintech leader in providing alternative trade finance solutions for small and medium enterprises. TFM also develops blockchain-based tools to derisk and lower the cost of trade finance transactions — including InvoiceCheck, a tool designed to reduce invoice finance fraud.

This article first appeared on Morning Star.

Yahoo! Finance: News: GTR Ventures announces debut investments in five trade FinTechs

Yahoo! Finance

LONDON and SINGAPORE, March 12, 2018 /PRNewswire/ — GTR Ventures, the world’s first investment and venture-building platform specialized in trade and supply chain, has announced its debut deals with five trade FinTech companies — Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend. These deals are the first in a strong pipeline of transactions. GTR Ventures has taken equity positions in the five companies, collectively valuing them at around US$50 million.

The companies — four digital trade lenders and a platform for institutional investors to access global trade instruments — have facilitated over US$160 million of trade loan deals since their inception. Launched in September 2017, GTR Ventures will work with the companies and build their businesses including through global expansion, development of new products such as trade finance indices, and connection to a global marketplace for digital trade finance assets.

“We are excited to partner with GTR Ventures as Tradeteq continues to grow,” said Christoph Gugelmann, CEO of UK-headquartered Tradeteq. “This partnership will help us expand our reach to all players within the trade ecosystem and consolidate our European bases while expanding to markets in Asia, including Singapore, Hong Kong, Shanghaiand Tokyo.”

Kelvin Tan, CIO of GTR Ventures said, “The global trade sector is transforming with digitization and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade. The founders behind Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend, are driving that change by using technology and data analytics to mitigate risks, make lending more efficient and close the trade finance gap. Our vision is to work with these companies and build strategic first-mover stakes in the future of trade.”

Rupert Sayer, CEO of GTR Ventures, said, “The rapidly changing landscape of trade presents exciting opportunities for investors. As our debut deals show, GTR Ventures is uniquely positioned to identify exceptional investments and, through partnerships and alliances, build a global network that will shape the future of both trade and trade finance.”

GTR Ventures is working on a strong pipeline of additional investments and expects to close five more deals and global partnerships in the next quarter.

Trade finance, which supports annual global trade of US$16 trillion, is an emerging niche investment area. However, some 30% of global trade, or US$5 trillion, is under-financed. This trade finance gap presents a growing opportunity for debt and equity investors. While returns from trade have traditionally come from providers of debt capital, the emergence of tradetechs presents a new opportunity for private equity and other investors looking to diversify.

About GTR Ventures (Contact: info@gtrventures.vc, website: www.gtrventures.vc)

Based out of London, Singapore, and Hong Kong, GTR Ventures is the world’s first investment platform dedicated to trade and supply chain. In exclusive partnership with Global Trade Review (GTR), the world’s leader in global trade and trade finance intelligence, publishing, news and events, GTR Ventures mobilizes private capital for trade and trade finance, investing in and supporting the development of trade-focused fintech companies (tradetechs) while working with multiple stakeholders to integrate technology into trade. GTR Ventures focuses on four main investment areas: transaction banking (trade finance, treasury, & cash), trade insurance & risk management, SME finance & supply chain and physical trade.

This article first appeared on Yahoo! Finance.

PE Hub Network: GTR Ventures backs five trade fintech companies

PE Hub Network

By Iris Dorbian

GTR Ventures, an investment and venture-building trade and supply chain-focused platform, has invested in five trade fintech companies: Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend. The collective value of the transactions is around $50 million.

PRESS RELEASE

LONDON and SINGAPORE, March 12, 2018 /PRNewswire/ — GTR Ventures, the world’s first investment and venture-building platform specialized in trade and supply chain, has announced its debut deals with five trade FinTech companies — Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend. These deals are the first in a strong pipeline of transactions. GTR Ventures has taken equity positions in the five companies, collectively valuing them at around US$50 million.

Rupert Sayer, CEO, and Kelvin Tan, Chief Investment Officer, from GTR Ventures – boldly reshaping the future of trade, together with the founders of 5 trade fintechs.

The companies — four digital trade lenders and a platform for institutional investors to access global trade instruments — have facilitated over US$160 million of trade loan deals since their inception. Launched in September 2017, GTR Ventures will work with the companies and build their businesses including through global expansion, development of new products such as trade finance indices, and connection to a global marketplace for digital trade finance assets.

“We are excited to partner with GTR Ventures as Tradeteq continues to grow,” said Christoph Gugelmann, CEO of UK-headquartered Tradeteq. “This partnership will help us expand our reach to all players within the trade ecosystem and consolidate our European bases while expanding to markets in Asia, including Singapore, Hong Kong, Shanghai and Tokyo.”

Kelvin Tan, CIO of GTR Ventures said, “The global trade sector is transforming with digitization and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade. The founders behind Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend, are driving that change by using technology and data analytics to mitigate risks, make lending more efficient and close the trade finance gap. Our vision is to work with these companies and build strategic first-mover stakes in the future of trade.”

Rupert Sayer, CEO of GTR Ventures, said, “The rapidly changing landscape of trade presents exciting opportunities for investors. As our debut deals show, GTR Ventures is uniquely positioned to identify exceptional investments and, through partnerships and alliances, build a global network that will shape the future of both trade and trade finance.”

GTR Ventures is working on a strong pipeline of additional investments and expects to close five more deals and global partnerships in the next quarter.

Trade finance, which supports annual global trade of US$16 trillion, is an emerging niche investment area. However, some 30% of global trade, or US$5 trillion, is under-financed. This trade finance gap presents a growing opportunity for debt and equity investors. While returns from trade have traditionally come from providers of debt capital, the emergence of tradetechs presents a new opportunity for private equity and other investors looking to diversify.

About GTR Ventures (Contact: info@gtrventures.vc, website: www.gtrventures.vc)

Based out of London, Singapore, and Hong Kong, GTR Ventures is the world’s first investment platform dedicated to trade and supply chain. In exclusive partnership with Global Trade Review (GTR), the world’s leader in global trade and trade finance intelligence, publishing, news and events, GTR Ventures mobilizes private capital for trade and trade finance, investing in and supporting the development of trade-focused fintech companies (tradetechs) while working with multiple stakeholders to integrate technology into trade. GTR Ventures focuses on four main investment areas: transaction banking (trade finance, treasury, & cash), trade insurance & risk management, SME finance & supply chain and physical trade.

About Culum Capital (contact: enquiry@culumcapital.com, website: www.culumcapital.com)
Culum Capital is a Singapore-headquartered fintech which provides companies with working capital funding using trade finance solutions particularly in receivables purchase and supply chain finance. It is also an investment platform for investors seeking alternative investment opportunities. The company has a proprietary risk assessment and management system to ensure the quality of deals flowing through its platform.

About eFundSME (contact: enquiry@efundsme.com, website: www.efundsme.com)
eFundSME Global Pte Ltd is an e-marketplace for invoice trading, founded, owned and managed by industry veterans from Singapore. Its key management team comprises professionals from the banking industry with aggregate experience exceeding 100 years. The company leverages the power of online technology to transform trade finance for the mutual benefit of SME sellers and investor buyers.

About Incomlend (contact: info@incomlend.com, website: www.incomlend.com)
Operating in Hong Kong and Singapore, Incomlend is a global invoice exchange where companies from different countries can fund their export receivables by selling them to private investors at a discount. The platform trades in multiple currencies (USD, EUR, SGD, and HKD) and offers an integrated digital receivables discounting solution to both suppliers and buyers across its global supply chain, dynamic discounting and factoring products. Investors’ capital is protected against debtors’ credit risk by world leading credit insurers.

About Tradeteq (contact: Nils Behling – nbehling@tradeteq.com, website: www.tradeteq.com)
UK-headquartered Tradeteq provides the collaborative network for trade finance investors and originators, to connect, interact, and transact. Tradeteq delivers AI-powered credit analytics, reporting, investment and operational solutions. Tradeteq transforms trade finance assets into transparent and scalable investments.
About Trade Finance Market (contact: media@tradefinancemarket.com, website: www.tradefinancemarket.com)
Singapore-based Trade Finance Market (TFM) is a fintech leader in providing alternative trade finance solutions for small and medium enterprises. TFM also develops blockchain-based tools to derisk and lower the cost of trade finance transactions — including InvoiceCheck, a tool designed to reduce invoice finance fraud.

 

This article first appeared on PE Hub Network.

联合早报: GTR Ventures 投资五金融科技公司

13 Mar 2018 – 投资平台GTR Ventures以5000万美元(6573万新元)投资五家贸易领域的金融科技公司,其中四家来自新加坡。

这五家公司中,四家是数码贸易借贷公司,另一家是让机构投资者获得全球贸易工具的平台。

这五家公司成立以来,已促成了超过1亿6000万美元的贸易贷款交易。

首席投资官陈循奕:利用数据分析降低风险

GTR Ventures首席投资官陈循奕说,全球贸易领域正在转型,数码化和数据驱动的基础设施连接了贸易实物和融资方面的各种参与者。

他指出,这五家公司利用技术和数据分析来降低风险,让借贷更为高效,弥合贸易融资中的缺口。

总部位于新加坡的Culum Capital利用贸易融资解决方案,尤其是应收账款购买和供应链融资方面的投资机会,为企业提供营运周转资金。

由本地业内人士创立的eFundSME、以及在香港和本地拥有业务的Incomlend是发票交易电子市场平台。

Trade Finance Market总部位于新加坡,为中小企业提供贸易融资解决方案,也开发基于区块链的工具,帮助降低贸易融资交易的风险和成本。

去年9月成立的GTR Ventures预计将在下个季度达成另外五项投资交易和全球合作。

 

This article first appeared on Lian He Zhao Bao (联合早报).

Trade finance distribution platform Tradeteq launched by ex-bankers

By Global Trade Review

Two former investment bankers have launched Tradeteq, a cloud-based platform that matches trade finance originators with institutional investors.

The platform went live this week after a soft launch in 2017, during which US$130mn of assets were processed, across seven international jurisdictions. During the soft launch, the originators were non-banks, typically factoring companies and corporate finance advisors organising funding for their corporate clients.

The company is based in London but will be opening a Singapore office later this month. The founders, Christoph Gugelmann and Niels Behling, worked together at Bank of America Merrill Lynch before they both joined Galena, the asset management arm of commodity trader Trafigura.

The pair then set up Thames Path Capital, a trade finance-focused asset manager, but found the market beseeched by gaps blocking wider distribution of assets. This is a problem Tradeteq sets out to address.

Tradeteq makes money from the platform by charging a fee based on volumes passed through the platform. There are also premium services such as credit analytics and reporting. Registration fees may be introduced further down the line.

Behling says he sees “tremendous demand for the platform, so we are in the fortunate position that both sides [buyers and sellers] are very interested”.

“We really have seen trade finance asset distribution from every angle, and we understand the investor side extremely well. This is what gives us the edge to distribute trade finance assets from banks to institutional investors,” adds Gugelmann.

The venture capital arm of GTR, GTR Ventures, holds an equity stake in Tradeteq

The post Trade finance distribution platform Tradeteq launched by ex-bankers appeared first on Global Trade Review (GTR).

China Money Network: GTR Ventures Invests In Five Fintech Start-Ups, Aims For Global Expansion

Li DongMei
China Money Network

12 Mar 2018, Hong Kong – GTR Ventures, a London-based investment and venture-building platform specialized in trade and supply chain, has announced its debut deals with five trade fintech companies.

These deals are the first in a strong pipeline of transactions. GTR Ventures has taken equity positions in the five companies, namely Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend. The companies are collectively valued at around US$50 million, the firm said in an announcement.

The companies – four digital trade lenders and a platform for institutional investors to access global trade instruments – have facilitated over US$160 million of trade loan deals since their inception.

Trade finance, which supports annual global trade of US$16 trillion, is an emerging niche investment area. However, some 30% of global trade, or US$5 trillion, is under-financed.

This trade finance gap presents a growing opportunity for debt and equity investors. While returns from trade have traditionally come from providers of debt capital, the emergence of tradetechs presents a new opportunity for private equity and other investors looking to diversify.

Launched in September 2017, GTR Ventures will work with the companies and build their businesses including through global expansion, development of new products such as trade finance indices, and connection to a global marketplace for digital trade finance assets.

“We are excited to partner with GTR Ventures as Tradeteq continues to grow,” said Christoph Gugelmann, CEO of UK-headquartered Tradeteq. “This partnership will help us expand our reach to all players within the trade ecosystem and consolidate our European bases while expanding to markets in Asia, including Singapore, Hong Kong, Shanghai and Tokyo.”

“The rapidly changing landscape of trade presents exciting opportunities for investors. As our debut deals show, GTR Ventures is uniquely positioned to identify exceptional investments and, through partnerships and alliances, build a global network that will shape the future of both trade and trade finance,” said Rupert Sayer, CEO of GTR Ventures.

GTR Ventures is working on a strong pipeline of additional investments and expects to close five more deals and global partnerships in the next quarter.

“The global trade sector is transforming with digitization and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade. The founders behind Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend, are driving that change by using technology and data analytics to mitigate risks, make lending more efficient and close the trade finance gap,” said Kelvin Tan, CIO of GTR Ventures.

Based out of London, Singapore, and Hong Kong, GTR Ventures is an investment platform dedicated to trade and supply chain. In exclusive partnership with Global Trade Review (GTR), GTR Ventures mobilizes private capital for trade and trade finance, investing in and supporting the development of trade-focused fintech companies (tradetechs) while working with multiple stakeholders to integrate technology into trade.

GTR Ventures focuses on four main investment areas: transaction banking (trade finance, treasury, & cash), trade insurance & risk management, SME finance & supply chain and physical trade.

Culum Capital is a Singapore-headquartered fintech which provides companies with working capital funding using trade finance solutions particularly in receivables purchase and supply chain finance. It is also an investment platform for investors seeking alternative investment opportunities. The company has a proprietary risk assessment and management system to ensure the quality of deals flowing through its platform.

eFundSME Global Pte Ltd is an e-marketplace for invoice trading, founded, owned and managed by industry veterans from Singapore. Its key management team comprises professionals from the banking industry with aggregate experience exceeding 100 years. The company leverages the power of online technology to transform trade finance for the mutual benefit of SME sellers and investor buyers.

Operating in Hong Kong and Singapore, Incomlend is a global invoice exchange where companies from different countries can fund their export receivables by selling them to private investors at a discount. The platform trades in multiple currencies (USD, EUR, SGD, and HKD) and offers an integrated digital receivables discounting solution to both suppliers and buyers across its global supply chain, dynamic discounting and factoring products. Investors’ capital is protected against debtors’ credit risk by world leading credit insurers.

UK-headquartered Tradeteq provides the collaborative network for trade finance investors and originators, to connect, interact, and transact. Tradeteq delivers AI-powered credit analytics, reporting, investment and operational solutions. Tradeteq transforms trade finance assets into transparent and scalable investments.

Singapore-based Trade Finance Market (TFM) is a fintech leader in providing alternative trade finance solutions for small and medium enterprises. TFM also develops blockchain-based tools to derisk and lower the cost of trade finance transactions – including InvoiceCheck, a tool designed to reduce invoice finance fraud.

 

This article first appeared in China Money Network.

Business Times: GTR Ventures makes debut investments in Singapore trade-linked fintechs

By Jamie Lee
Business Times Singapore

13 Mar 2018, Singapore – GTR Ventures, the world’s first investment platform targeted at trade-related fintechs, has closed its first five investments, including in several Singapore fintechs that are taking aim at the US$5 trillion trade-finance gap globally.

It did not disclose the full valuation of each fintech, but the equity positions in the five companies collectively value them at around US$50 million, GTR Ventures said in a media release on Monday.

GTR Ventures is the venture capital arm of trade finance intelligence firm Global Trade Review, and has offices in Singapore, Hong Kong and London.

Singapore-based Kelvin Tan, chief investment officer of GTR Ventures, said that the founders behind these fintech firms are using technology and data analytics to mitigate risks, make lending more efficient, and close the trade finance gap.

“The global trade sector is transforming with digitisation and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade. Our vision is to work with these companies and build strategic first-mover stakes in the future of trade.”

The fintech companies collectively have helped to tie up more than US$160 million in trade loan deals since their inceptions.

They include Singapore-headquartered Culum Capital, which provides companies with working capital funding using trade finance solutions particularly in receivables purchase and supply chain finance.

Another is Singapore-based Trade Finance Market, a fintech that has developed a digital tool to reduce invoice finance fraud.

GTR Ventures said it is working on a “strong pipeline” of additional investments and expects to close five more deals and global partnerships in the next quarter.

 

This article first appeared in the Business Times (Singapore).

Angel News: GTR Ventures makes debut investments in 5 FinTechs

Angel News

13 Mar 2018 – GTR Ventures, the world’s first investment and venture-building platform specialized in trade and supply chain, has announced its debut deals with five trade FinTech companies – Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend. These deals are the first in a strong pipeline of transactions. GTR Ventures has taken equity positions in the five companies, collectively valuing them at around US$50 million.

The companies – four digital trade lenders and a platform for institutional investors to access global trade instruments – have facilitated over US$160 million of trade loan deals since their inception. Launched in September 2017, GTR Ventures will work with the companies and build their businesses including through global expansion, development of new products such as trade finance indices, and connection to a global marketplace for digital trade finance assets.

“We are excited to partner with GTR Ventures as Tradeteq continues to grow,” said Christoph Gugelmann, CEO of UK-headquartered Tradeteq. “This partnership will help us expand our reach to all players within the trade ecosystem and consolidate our European bases while expanding to markets in Asia, including Singapore, Hong Kong, Shanghai and Tokyo.”

Kelvin Tan, CIO of GTR Ventures said, “The global trade sector is transforming with digitization and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade. The founders behind Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend, are driving that change by using technology and data analytics to mitigate risks, make lending more efficient and close the trade finance gap. Our vision is to work with these companies and build strategic first-mover stakes in the future of trade.”

Rupert Sayer, CEO of GTR Ventures, said, “The rapidly changing landscape of trade presents exciting opportunities for investors. As our debut deals show, GTR Ventures is uniquely positioned to identify exceptional investments and, through partnerships and alliances, build a global network that will shape the future of both trade and trade finance.”

GTR Ventures is working on a strong pipeline of additional investments and expects to close five more deals and global partnerships in the next quarter.

Trade finance, which supports annual global trade of US$16 trillion, is an emerging niche investment area. However, some 30% of global trade, or US$5 trillion, is under-financed. This trade finance gap presents a growing opportunity for debt and equity investors. While returns from trade have traditionally come from providers of debt capital, the emergence of tradetechs presents a new opportunity for private equity and other investors looking to diversify.

 

This article first appeared on Angel News.

Crowd Fund Insider: GTR Ventures Invests in Five Trade Fintechs: Tradeteq, eFundSME, Culum Capital & Trade Finance Market

By JD Alois
Crowd Fund Insider

12 Mar 2018 – GTR Ventures, an investment and venture platform that is specializing in the global trade and supply chain financing sector, has announced investments in five Fintechs based in the UK and Asia: Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend.

Launched in September 2017 with offices in London, Singapore and Hong Kong, GTR Ventures will work with their portfolio companies and build their businesses via global expansion, development of new products such as trade finance indices, and connections to a global marketplace for digital trade finance assets. GTR says their equity positions collectively value the Fintech firms at USD $50 million. These deals are indicative of a “strong pipeline of transactions” as GTR expects to back additional Fintechs in the trade financing industry.

Rupert Sayer, CEO of GTR Ventures, said the rapidly changing landscape in global trade creates opportunities for investors;

“As our debut deals show, GTR Ventures is uniquely positioned to identify exceptional investments and, through partnerships and alliances, build a global network that will shape the future of both trade and trade finance.”

These four digital trade lenders and a platform for institutional investors to access global trade instruments have reportedly facilitated over US$160 million of trade loan deals since their inception.  GTR Ventures expects additional investments with five more deals and global partnerships in the next quarter.

Kelvin Tan, CIO of GTR Ventures explained that the global trade sector is transforming with digitization and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade.

“The founders behind Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend, are driving that change by using technology and data analytics to mitigate risks, make lending more efficient and close the trade finance gap,” said Tan. “Our vision is to work with these companies and build strategic first-mover stakes in the future of trade.”

Trade finance is enormous. The opportunity for forward thinking platforms to disrupt the US$ 16 trillion global trade business is huge. Additionally, GTR says some 30% of global trade, or US$5 trillion, is under-financed. This trade finance gap presents an opportunity for debt and equity investors. While returns from trade have traditionally come from providers of debt capital, the emergence of “Tradetechs” presents a new opportunity for private equity and other investors looking to diversify.

“We are excited to partner with GTR Ventures as Tradeteq continues to grow,” said Christoph Gugelmann, CEO of UK-headquartered Tradeteq. “This partnership will help us expand our reach to all players within the trade ecosystem and consolidate our European bases while expanding to markets in Asia, including Singapore, Hong Kong, Shanghai and Tokyo.”

 

This article first appeared on Crowd Fund Insider.

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e27.co: Meet the 5 trade-tech companies backed by Singapore’s GTR Ventures

By Sainul Abudheen K
e27.c0

12 Mar 2018 – GTR Ventures, an investment and venture-building platform specialised in trade and supply chain, has announced its debut investments in five trade fintech companies, of which four are from Singapore.

The city-state-based GTR Ventures has taken equity positions in these fintech companies, collectively valuing them at around US$50 million.

As per a press note, these five companies — four digital trade lenders and a platform for institutional investors to access global trade instruments — have facilitated over US$160 million of trade loan deals since their inception.

GTR Ventures will work with these firms and build their businesses through global expansion, development of new products such as trade finance indices, and connection to a global marketplace for digital trade finance assets.

The VC firm expects to close five more deals and global partnerships in the next quarter.

Launched in September 2017, GTR Ventures has operations in London and Hong Kong, besides Singapore. In partnership with Global Trade Review (GTR) — a news portal for global trade and trade finance intelligence, publishing, news and events — GTR Ventures mobilises private capital for trade and trade finance, investing in and supporting the development of trade-focused fintech companies (tradetechs) while working with multiple stakeholders to integrate technology into trade.

GTR Ventures focuses on four main investment areas: transaction banking (trade finance, treasury and cash), trade insurance and risk management, SME finance and supply chain and physical trade.

A sneak-peek into the five investees

Culum Capital (Saingapore)

Culum Capital provides companies with working capital funding using trade finance solutions, particularly in receivables purchase and supply chain finance. It is also an investment platform for investors seeking alternative investment opportunities. The company has a proprietary risk assessment and management system to ensure the quality of deals flowing through its platform.

eFundSME Global (Singapore)

eFundSME Global is an online marketplace for invoice trading, founded, owned and managed by industry veterans from Singapore. Its key management team comprises professionals from the banking industry with aggregate experience exceeding 100 years. The company leverages the power of online technology to transform trade finance for the mutual benefit of SME sellers and investor buyers.

Incomlend (Hong Kong and Singapore)

Incomlend is an invoice exchange where companies from different countries can fund their export receivables by selling them to private investors at a discount. The platform trades in multiple currencies (USD, EUR, SGD, and HKD) and offers an integrated digital receivables discounting solution to both suppliers and buyers across its global supply chain, dynamic discounting and factoring products. Investors’ capital is protected against debtors’ credit risk by world leading credit insurers.

Tradeteq (UK)

Tradeteq provides the collaborative network for trade finance investors and originators to connect, interact, and transact. Tradeteq delivers AI-powered credit analytics, reporting, investment and operational solutions. Tradeteq transforms trade finance assets into transparent and scalable investments.

Trade Finance Market (Singapore)

Trade Finance Market (TFM) provides alternative trade finance solutions to SMEs. TFM also develops blockchain-based tools to derisk and lower the cost of trade finance transactions, including InvoiceCheck, a tool designed to reduce invoice finance fraud.

Kelvin Tan, CIO of GTR Ventures, said: “The global trade sector is transforming with digitisation and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade. The founders behind Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend, are driving that change by using technology and data analytics to mitigate risks, make lending more efficient and close the trade finance gap. Our vision is to work with these companies and build strategic first-mover stakes in the future of trade.”

 

This article first appeared on e27.c0.

Deal Street Asia: GTR Ventures backs five tradetech firms, plans more deals in Q2

By Tanu Pandey
Deal Street Asia

12 Mar 2018 – Trade and supply chain-focused investor GTR Ventures has announced its debut investments in five trade fintech companies – Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend – collectively valuing them at around $50 million.

The financial details of each investment were not disclosed.

Taking an equity position in the five companies, the London, Hong Kong and Singapore-based firm on Monday said that the deals were the first in a strong pipeline of transactions. The venture builder further added that it expects to close five more deals and global partnerships in the next quarter.

The recently funded companies – four digital trade lenders and a platform for institutional investors to access global trade instruments – have facilitated over $160 million of trade loan deals since their inception.

Among the companies, three are Singapore-headquartered — eFundSME is an e-marketplace for invoice trading. Trade Finance Market (TFM) provides alternative trade finance solutions for small and medium enterprises and Culum Capital provides Singaporean SMEs with access to working capital funded by accredited investors.

GTR Ventures has also invested in Incomlend, which operates in Hong Kong and Singapore, a global invoice exchange where companies from different countries can fund their export receivables by selling them to private investors at a discount. The fifth company to receive investment is UK-based Tradeteq that provides the collaborative network for trade finance investors and originators, to connect, interact, and transact.

Launched in September 2017, GTR Ventures invests in trade-focused fintech companies and focuses on four main investment areas — transaction banking (trade finance, treasury and cash), trade insurance and risk management, SME finance and supply chain, and physical trade.

Trade finance, which supports an annual global trade of $16 trillion, is an emerging niche investment area. However, some 30 per cent of global trade, or $5 trillion, is under-financed. This trade finance gap presents a growing opportunity for debt and equity investors. While returns from trade have traditionally come from providers of debt capital, the emergence of trade-techs presents a new opportunity for private equity and other investors looking to diversify, a statement from GTR Ventures said.

“The global trade sector is transforming with digitization and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade. The founders behind Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend, are driving that change by using technology and data analytics to mitigate risks, make lending more efficient and close the trade finance gap,” said Kelvin Tan, CIO of GTR Ventures.

This article first appeared on Deal Street Asia.

GTR Ventures announces debut investments in five trade FinTechs

Our press release is available in multiple languages (pdf):
Mandarin | Japanese | French | English

London/Singapore Mar 12, 2018:  GTR Ventures, the world’s first investment and venture-building platform specialized in trade and supply chain, has announced its debut deals with five trade FinTech companies – Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend. These deals are the first in a strong pipeline of transactions. GTR Ventures has taken equity positions in the five companies, collectively valuing them at around US$50 million.

The companies – four digital trade lenders and a platform for institutional investors to access global trade instruments – have facilitated over US$160 million of trade loan deals since their inception. Launched in September 2017, GTR Ventures will work with the companies and build their businesses including through global expansion, development of new products such as trade finance indices, and connection to a global marketplace for digital trade finance assets.

“We are excited to partner with GTR Ventures as Tradeteq continues to grow,” said Christoph Gugelmann, CEO of UK-headquartered Tradeteq. “This partnership will help us expand our reach to all players within the trade ecosystem and consolidate our European bases while expanding to markets in Asia, including Singapore, Hong Kong, Shanghai and Tokyo.”

Kelvin Tan, CIO of GTR Ventures said, “The global trade sector is transforming with digitization and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade. The founders behind Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend, are driving that change by using technology and data analytics to mitigate risks, make lending more efficient and close the trade finance gap. Our vision is to work with these companies and build strategic first-mover stakes in the future of trade.”

Rupert Sayer, CEO of GTR Ventures, said, “The rapidly changing landscape of trade presents exciting opportunities for investors. As our debut deals show, GTR Ventures is uniquely positioned to identify exceptional investments and, through partnerships and alliances, build a global network that will shape the future of both trade and trade finance.”

GTR Ventures is working on a strong pipeline of additional investments and expects to close five more deals and global partnerships in the next quarter.

Trade finance, which supports annual global trade of US$16 trillion, is an emerging niche investment area. However, some 30% of global trade, or US$5 trillion, is under-financed. This trade finance gap presents a growing opportunity for debt and equity investors. While returns from trade have traditionally come from providers of debt capital, the emergence of tradetechs presents a new opportunity for private equity and other investors looking to diversify.

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About GTR Ventures (Contact: info@gtrventures.vc, website: www.gtrventures.vc)

Based out of London, Singapore, and Hong Kong, GTR Ventures is the world’s first investment platform dedicated to trade and supply chain. In exclusive partnership with Global Trade Review (GTR), the world’s leader in global trade and trade finance intelligence, publishing, news and events, GTR Ventures mobilizes private capital for trade and trade finance, investing in and supporting the development of trade-focused fintech companies (tradetechs) while working with multiple stakeholders to integrate technology into trade. GTR Ventures focuses on four main investment areas: transaction banking (trade finance, treasury, & cash), trade insurance & risk management, SME finance & supply chain and physical trade.

About Culum Capital (contact: enquiry@culumcapital.com, website: www.culumcapital.com)

Culum Capital is a Singapore-headquartered fintech which provides companies with working capital funding using trade finance solutions particularly in receivables purchase and supply chain finance. It is also an investment platform for investors seeking alternative investment opportunities. The company has a proprietary risk assessment and management system to ensure the quality of deals flowing through its platform. 

About eFundSME (contact: enquiry@efundsme.com , website: www.efundsme.com)

eFundSME Global Pte Ltd is an e-marketplace for invoice trading, founded, owned and managed by industry veterans from Singapore. Its key management team comprises professionals from the banking industry with aggregate experience exceeding 100 years. The company leverages the power of online technology to transform trade finance for the mutual benefit of SME sellers and investor buyers.

About Incomlend (contact: info@incomlend.com, website: www.incomlend.com)

Operating in Hong Kong and Singapore, Incomlend is a global invoice exchange where companies from different countries can fund their export receivables by selling them to private investors at a discount. The platform trades in multiple currencies (USD, EUR, SGD, and HKD) and offers an integrated digital receivables discounting solution to both suppliers and buyers across its global supply chain, dynamic discounting and factoring products. Investors’ capital is protected against debtors’ credit risk by world leading credit insurers.

About Tradeteq (contact: Nils Behling – nbehling@tradeteq.com, website: www.tradeteq.com)

UK-headquartered Tradeteq provides the collaborative network for trade finance investors and originators, to connect, interact, and transact. Tradeteq delivers AI-powered credit analytics, reporting, investment and operational solutions. Tradeteq transforms trade finance assets into transparent and scalable investments.

About Trade Finance Market (contact: media@tradefinancemarket.com, website: www.tradefinancemarket.com)

Singapore-based Trade Finance Market (TFM) is a fintech leader in providing alternative trade finance solutions for small and medium enterprises. TFM also develops blockchain-based tools to derisk and lower the cost of trade finance transactions – including InvoiceCheck, a tool designed to reduce invoice finance fraud.

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AltFi News: GTR Ventures heads for fintech deep dive with five new equity deals

By Emily Nicolle
AltFi News

The VC firm has announced debut investments across the UK and Singaporean trade finance sector.

12 Mar 2018 – GTR Ventures, labelled as the world’s first investment and venture-building firm specialised in trade and supply chain finance, has today announced five debut deals with trade fintech firms across London and Singapore.

The VC firm has taken equity positions in UK-based Tradeteq, as well as Singaporean-based Culum Capital, Trade Finance Market, eFundSME and Incomlend, collectively valuing them at around USD $50m.

The five fintech firms have facilitated over USD $160m of trade loan deals to date, with this latest investment from GTR Ventures destined to help the companies build their businesses through global expansion, new product development and connection to a global marketplace for digital trade finance assets.

Kelvin Tan, CIO of GTR Ventures, says that the firm’s expansion into fintech is designed to build “strategic first-move stakes in the future of trade”,  helping GTR to establish diverse players across both the physical and financial aspects of the sector via digitisation and data-driven methodology.

“The rapidly changing landscape of trade presents exciting opportunities for investors,” added Rupert Sayer, CEO of GTR Ventures. “As our debut deals show, GTR Ventures is uniquely positioned to identify exceptional investments and, through partnerships and alliances, build a global network that will shape the future of both trade and trade finance.”

The VC firm also expects to close five more deals and global partnerships within the next quarter. For UK firm Tradeteq, the deal represents an opportunity for direct expansion into the Asean region.

“We are excited to partner with GTR Ventures as Tradeteq continues to grow,” said CEO Christoph Gugelmann. “This partnership will help us expand our reach to all players within the trade ecosystem and consolidate our European bases while expanding to markets in Asia, including Singapore, Hong Kong, Shanghai and Tokyo.”

 

This article first appeared in AltFi News.

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