New Capital Will Power the Launch of Turbine’s Loan Platform; Silicon Valley Bank to Provide up to $100M Warehouse Facility
turbine Finance Corp, a liquidity platform driven by data science that provides credit facilities to venture investors, announced it has raised $13 million in Series A funding co-led by Alpha Edison and TTV Capital and joined by Fin Capital, B Capital, and Sozo Ventures. This investment, in addition to the company’s previously unannounced $8.75M in Seed funding, brings Turbine’s funding raised to $21.75 million. The company also announced it has secured up to a $100 million warehouse facility from Silicon Valley Bank (SVB), a division of First Citizens Bank, to provide general partners and limited partners the option to borrow against their existing fund investments, unlocking capital that has historically been inaccessible. The warehouse facility, combined with Turbine’s Seed and Series A funding, brings the company’s total financial backing to $121.75 million.
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“The broader private equity market, inclusive of venture and real estate funds, accounts for more than $13 trillion in capital globally. Substantially all of this capital base is locked away in illiquid general and limited partnership positions,” said Mike Hurst, Founder and CEO of Turbine. “Venture capital and private equity returns are among the highest of any asset class, but liquidity has been extremely limited and unpredictable. By empowering alternative asset investors to access their capital on their own schedule, Turbine will unlock increased investment to high performance funds. We are proud to bring this solution to market with the backing of world-class fintech investors, and with the guidance and partnership of Silicon Valley Bank.”
With Turbine’s lending platform, private equity and venture firms can offer LPs access to the value of their portfolio investments without reducing exposure to these positions. LPs will also have the option to leverage existing investments to make new commitments – to new fund vintages or SPV allocations – and to fulfill capital calls for existing commitments. Turbine partners directly with firms to underwrite and secure portfolios, allowing for seamless and cost-effective lending. Turbine’s first-of-its-kind underwriting platform leverages machine learning and data science to complete months of manual processes in days. Data insights produce accurate and insightful results on fund performance and monetary value for underwriting teams.
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“Investors have long had to manage the trade-off between outsized returns and flexible liquidity. Turbine breaks this tradeoff. With Turbine, investors will benefit from the same set of leverage and liquidity tools found in public markets and real estate,” said Nate Redmond, Managing Partner at Alpha Edison. “We are thrilled to solve this challenge for the venture ecosystem and to create the foundation for the future of private assets. The team at Turbine, whom we have come to know and trust over the past decade, is uniquely suited to solve this problem at scale.”
Turbine’s founding team and advisory board has decades of expertise in financial services and venture capital, including previous experience at Silicon Valley Bank, City National Bank, and multiple fintech companies. The company is led by Mike Hurst, a repeat fintech founder, startup advisor, and investor who previously served as founder and CEO of Exactuals, the global payments leader for the entertainment industry.
“Our investment approach has always been to identify the problem first, and then seek out companies that are working on a solution,” said Gardiner Garrard, Co-founder and Managing Partner at TTV Capital. “That’s exactly what Mike did with Exactuals when we invested over a decade ago, and it’s the same playbook that he’s using today. The founding team at Turbine has a proven track record of success, and we’re confident in their ability to bring their liquidity platform to market and scale the business.”
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“Through its innovative lending platform, Turbine is helping venture investors address liquidity challenges by allowing funds to provide flexibility to their investors,” said Brian Foley, Market Manager of Warehouse Lending at Silicon Valley Bank. “SVB is thrilled to continue our strong relationship with Turbine, and we look forward to helping it succeed and scale since the team provides a critical resource for private equity and venture firms.”
Turbine’s infusion of equity capital will be used to fully deploy its warehouse line as well as expand the company’s data science team, allowing the venture ecosystem to leverage unique insights. The company aims to rapidly onboard seasoned funds led by repeat fund managers with strong track records. Venture capital firms interested in offering Turbine’s platform to their LPs and GPs should visit
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Source – PR Newswire
