Tesseract secures $25 mn in Series A funding led by Augmentum Fintech

By Megha Bhattacharya

European digital asset lending company Tesseract today raised $25 million in its Series A funding round led by Augmentum Fintech. The round saw the participation of BlackFin Capital Partners, Concentric, DN Capital, Jabre Capital Partners Family Office, LeadBlock Partners, and Sapphire Ventures. Industry participants Coinbase Ventures, Wintermute, and Woorton also subscribed to the round along with undisclosed local and international investors and strategic angels. Icebreaker.vc, which made its first investment in Tesseract in 2018, also participated in the round.

Yichen Wu, CEO and founder of Tesseract, said, “This funding is a significant milestone for Tesseract and one of the largest Series A investments in Finland to date. We are humbled to gain new industry-leading investors in technology, finance, and blockchain whose expertise will add significant value beyond the raised funding. We are extremely happy to see incredible global investor interest in our business in this oversubscribed round.”

“The funding will be aimed towards developing our industry-leading institutional offerings even further, hiring new talent to develop new and existing partnerships, and to boost innovation in new undisclosed financial products. We will also focus on developing our cross-trading venue margin lending platform, which has seen enormous uptake in the past year. Due to the global nature of our fast-moving business, we will also funnel efforts into spearheading our global growth and ensuring regulatory compliance globally.”

Tesseract aims to bridge institutional capital flows between traditional and digital asset finance. Tesseract’s core products are in margin lending, OTC lending, partnerships with retail trading platforms, and decentralised finance. Its margin lending platform improves capital efficiency for institutional clients ranging from hedge funds to market makers.

Martyn Holman, Partner at Augmentum Fintech, commented on the investment: “We are witnessing wholesale changes in the infrastructure supporting the crypto space as it evolves to the demands of increasing institutional activity. Following the separation of custody and trading in the first waves of evolution, Tesseract is addressing the next fundamental need in a space that has limited leverage capabilities. Yichen, Ilkka and their exceptional team have already grown a strong and profitable foundation with an outstanding product, a clear vision and a voracious will to win. We are all very excited to be joining them on this journey.”