Vancouver-based FinTech startup Yield Exchange, which provides an online marketplace for guaranteed investment certificates (GICs), has secured $700,000 CAD in pre-seed funding.
Despite the volatility in current fundraising conditions, Yield Exchange said the round was oversubscribed, as it had originally set out to raise $500,000. According to the startup, the capital it raised will be used to support its expansion across Canada, including Ontario and Alberta.
Yield Exchange features a digitized bidding system for GICs, making it easier for users to access diverse investment options.
Investors that participated in the round include Tiny Capital, Maven Capital Partners, and The Firehood. A group of angel investors also contributed, including Glen Lougheed, Miriam Dong, and John Hossack, among others. Of the $700,000 in the round, $100,000 came from The Firehood’s pitch competition that Yield Exchange won at SAAS NORTH in 2022.
Founded in 2019 by Yvette Wu (CEO), Sampath Ekanayake (CPO) and Ravi Sumalm (COO), Yield Exchange says its platform offers a secure and low cost solution to negotiate GIC rates with multiple financial institutions.
Yield Exchange offers a two-sided marketplace, allowing depositors to place funds at the going rate, while competing due diligence. The platform also sends out notifications on all market activity to help financial institutions focus on requests that align with their liquidity needs.
Wu said that traditionally, negotiating GIC rates can be a time-consuming process that involves manually reaching out to financial institutions in hopes of completing due diligence and finding competitive rates. Yield Exchange streamlines the process through a digitized bidding system, making it easier for different entities to access diverse investment options.
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Yield Exchange launched its platform in the fourth quarter of 2021. Its platform has now processed up to $180 million in posted transactions.
In addition to its national expansion plans, Yield Exchange said the funding will allow the startup to expand its current offering of wholesale GICs to include retail GICs, overnight rates, and bonds.
Yield Exchange won both pitch competitions at SAAS NORTH in 2022, where it took home $10,000 from Amazon Web Services’ PitchFest in addition to the $100,000 it won from The Firehood. The startup also won Innovate BC’s Woman-led Venture Prize in 2022, securing $10,000 in cash.
Featured image courtesy Yield Exchange.