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Marco Financial raises $12 million Series A

Source: Marco

Marco, the trade finance platform catering to the needs of SME exporters in Latin America, has announced the successful closure of a $12 million Series A funding round. The round was led by IDC Ventures, with additional participation from IDB Lab (the innovation and venture laboratory of the Inter-American Development Bank Group), Barn Invest, SquareOne Capital, Arcadia Funds, Florida Funders, Miami Angels, Kayyak Ventures, and Neer Ventures, among others.

Founded in 2020 by entrepreneurs Jacob Shoihet and Peter D. Spradling, Marco has quickly established itself as a key player in the trade finance sector, with a team of over 50 employees across its offices in Miami, New York City, and Montevideo, Uruguay. The company is committed to building the operating system for Latin American SME exporters engaged in cross-border trade - providing them with fast, easy access to financing, and evolving to offer a comprehensive suite of services designed to address the unique challenges SMEs face.

"We are thrilled to enter this new phase of growth catapulted by the unwavering support of our investors who believe in our mission," commented Jacob Shoihet, co-founder and CEO of Marco. "We are looking to serve a cohort that has been historically underserved, offering a comprehensive platform that encompasses everything from financing to compliance and beyond. With our suite of solutions, including LLC formation, bookkeeping, FX payouts, cargo insurance, and banking services, we are supercharging SMEs in trade and ultimately creating an economy that works for everyone."

Marco's innovative approach to trade finance is addressing the $350 billion trade financing gap in Latin America. By leveraging advanced, proprietary risk models that process data in real-time, Marco dynamically mitigates capital loss, having already surpassed $540 million in cumulative volume funded since inception across more than 63,000 receivables against 1,700+ primarily investment-grade debtors.

"It's great to be part of the transformative impact Marco's platform is having on the Latin American trade sector," commented Bobby Aitkenhead, Managing Director of IDC Ventures. "The overwhelming demand for Marco's solutions highlights the critical need to modernize and automate operations for SME exporters in LatAm, who have been long constrained by a lack of financing as well as antiquated 'pen and clipboard' workflows. By centralizing operations and democratizing access to capital, Marco is not just facilitating business growth; it's profoundly impacting lives by catapulting an entire region and industry into the digital age. Backed by an exceptional team and a clear vision for a better future, Marco shines as a beacon of welcome disruption, and we're excited to support its journey."

The platform offers a holistic 360° suite of products and services tailored to SMEs, including LLC creation, bookkeeping, banking, and financing tools such as factoring and asset-based lending. These services are designed to close the gap faced by LatAm exporters, who are often underserved by banks due to perceived risks associated with their lack of history and size. For the first time since 2003, Mexico is exporting more to the US than China, highlighting the significant trend of nearshoring - and Marco plays a crucial role in facilitating this shift.

This fundraise marks a significant milestone in Marco's journey, further strengthening its commitment to ESG efforts within the LatAm region. With the backing of IDB Lab, which leverages new ways to drive social inclusion, environmental action and productivity in Latin America and the Caribbean, Marco is poised to launch new sustainable initiatives aimed at reaching the segments of the LatAm SME market most underserved by the current financial system.

"Through my own journey as an SME exporter, I've experienced the struggle of securing essential financing for growth and faced many challenges when looking for alternatives that could support my business," shared Marco co-founder and COO Peter Spradling.

"Marco's trade finance solutions, especially our factoring model, not only align perfectly with SMEs needs but also minimize risk along the way," Spradling continued. "As we embark on this milestone, we extend our deepest gratitude to all those who have played a pivotal role in our journey - from our dedicated team members to our invaluable partners and mentors. Together we are changing the risk perception associated with SMEs and shaping the future of cross-border trade enabling companies to streamline operations and invest in growth."

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