Dive Brief:

• TreasurySpring, a London-based fintech startup whose platform is designed to help companies with diversifying their cash deposits through investment options, has raised $29 million in Series B funding, the company said Monday.

• In a press release, TreasurySpring CEO Kevin Cook said the company is “very well-placed” to capitalize on recent banking sector crises — including the collapse of Silicon Valley Bank — that have increased the demand for treasury diversification tools.

• “As rates have begun to rise across the globe and crises have once again started to permeate the banking sector, companies of all sizes have woken up to the benefits of diversification, security and attractive risk-adjusted returns,” Cook said in the release.

Dive Insight:

A March survey from Gartner found that 85% of CFOs were concerned about the impact of recent bank failures on their operations, with 18% noting they had some level of exposure to one of the failing banks. More than one in four respondents said they planned to diversify their deposits across more banks. 

TreasurySpring’s platform allows organizations seeking short term funding to connect with cash-rich companies willing to serve as investors. For cash seekers, the platform offers “flexible, low-cost access to a new, diverse universe of non-bank funders,” according to a company description posted on Cook’s LinkedIn page. For cash investors, the tool offers the opportunity to “diversify away from traditional unsecured bank exposure; to reduce risk and increase returns, through a simple digital platform that requires no client infrastructure or cost,” the write-up says.

Demand for the platform has accelerated, with over 100 clients currently in the onboarding process, adding to more than 250 clients that are already signed up, according to the fintech startup, which was founded in 2017. 

With its latest funding round, led by London-based venture capital firm Balderton Capital, TreasurySpring has raised $42 million to date, the release said. The new funding will allow the company to invest in its product, sales, marketing and technology teams, with the goal of increasing its headcount by 50% in the next 12 months, it said. 

TreasurySpring isn’t the only fintech company looking to capitalize on the SVB collapse and other recent bank failures.

Ledge, an Israeli startup, announced in March that it was rolling out a new tool designed to help CFOs with managing cash across multiple banks. Meanwhile, Trovata, a U.S. treasury platform provider, is focused on using generative artificial intelligence technology to give finance chiefs higher visibility into their cash flow, CFO Dive reported last month.