CPE News (4.18.2023) – Yield Exchange has raised $700,000 in pre-seed funding from Tiny Capital, Gustavson Capital, Maven Capital Partners, The Firehood, and several private investors.
Founded by Yvette Wu, Sampath Ekanayake and Ravi Sumalm, Vancouver based Yield Exchange is a fintech startup that is transforming the $750 billion Canadian wholesale GIC investment industry.
Yield Exchange’s platform enables entities of all kinds — from municipalities and universities to non-profit organizations and strata corporations — to find, compare, and negotiate investment rates for guaranteed investment certificates (GICs) through an easy-to-use online marketplace.
photo credit: Yield Exchange
News Release
Yield Exchange Plans National Expansion With $700K Pre-Seed Funding
A Vancouver-based fintech startup transforming how wholesale treasury is invested, is set to go national after over-subscribing in its pre-seed funding round.
Vancouver , April 18, 2023 (GLOBE NEWSWIRE) — Vancouver, B.C. April 18, 2023: Yield Exchange, a Vancouver-based fintech startup that is transforming the $750B Canadian wholesale GIC investment industry, has plans to expand nationally, after raising $700K CDN, in its pre-seed round. Founded by three veterans of the traditional banking industry, the platform enables entities of all kinds — from municipalities and universities to non-profit organizations and strata corporations — to find, compare, and negotiate investment rates for guaranteed investment certificates (GICs) through an easy-to-use online marketplace.
“With interest rates going up and the economy in flux it’s more important than ever that organizations negotiate the best possible rates for their investments,” said Yvette Wu, co-founder and CEO of Yield Exchange. “Traditionally this has been a time-consuming process that involves treasurers reaching out manually to financial institutions in hopes of completing due diligence and finding competitive rates. We’re excited to offer a transparent digital solution that helps both depositors and financial institutions build better relationships.”
Traditionally, entities looking to invest in wholesale GICs have had to perform due diligence manually, calling financial institutions for the best rates and terms. The process is time-consuming and inefficient. By streamlining the process through a digitized bidding system, Yield Exchange is making it easier for these entities to access diverse investment options that can help them grow their funds.
Yield Exchange originally set out to raise $500K, to help with its national expansion into new markets across Canada including Ontario. The fintech startup also plans to expand its current offering of wholesale GICs to include retail GICs, overnight rates and bonds. Despite raising its pre-seed during an economic downturn, Yield Exchange oversubscribed, as it was able to show significant early traction and find investors who understood the space and could offer strategic value at favourable terms. Investors include: Tiny Capital, Gustavson Capital, Maven Capital Partners, The Firehood, and several other prominent angels.
“There’s no arguing that it’s a difficult time for startups to raise in this economic climate,” said Wu. “With that said, if you are showing signs of early success and market acceptance, it is still possible to find strategic investors who will understand the value you are creating for your stakeholders and the economy.”
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About Yield Exchange
Yield Exchange is disrupting the traditional wholesale deposit negotiation process with a digital solution that enables Wholesale Depositors to connect directly with Canadian Financial Institutions. Our platform offers a secure, transparent, efficient and low cost solution to negotiate GIC rates with multiple financial institutions – without the cost and time involved with using a middleman.
We’re excited to offer a unique solution that allows the wholesale deposit market function as it should. Yield Exchange gives depositors the confidence to place funds at the going rate, while completing due diligence. For Financial Institutions, Yield Exchange enables you to be notified on all market activity so you can focus on requests that align with your liquidity needs
Media Contact:
Jennifer Maloney Adab
hello@tripleamedia.ca