Startup Spiko, a French company specializing in tokenized multi-manager funds (MMF), secures $22 million in funding
In the heart of Europe, a French startup named Spiko is making waves in the financial industry. After a successful Series A funding round led by Index Ventures, the company has raised $22 million, attracting notable backers such as Revolut co-founder Nikolay Storonsky and other industry figures.
Within less than a year since its launch, Spiko has amassed nearly $400 million in assets under management (AUM), a remarkable feat achieved organically without dedicated sales efforts. The company has also processed over $900 million in working capital from more than 1,000 businesses.
Spiko's mission is to bridge the cash yield gap in Europe, a market where it's less common for businesses to switch into money market funds compared to the US. With an estimated €25 trillion in idle cash deposits in Europe, Spiko sees a significant market opportunity.
The startup targets businesses with idle cash, both in the crypto and mainstream sectors, offering them the chance to earn daily interest on their cash without lock-ups. To achieve this, Spiko leverages blockchain technology, tokenizing money market funds and reducing intermediaries, enabling faster, cost-effective transfers while complying with regulation.
Spiko's euro fund is currently more popular than its US dollar MMF, with €238 million ($277 million) and $120 million in AUM respectively, according to CoinGecko. The company's regulatory compliance is evidenced by approval from the French Financial Markets Authority (AMF) and custody via a major global depositary bank.
Twenty First Capital acts as fund manager for Spiko, while CACEIS, a securities service joint venture between Crédit Agricole and Santander, provides custody for Spiko's funds. The startup's funds are available on five public blockchains, ensuring digital native custody of assets.
Spiko's co-founder, Paul-Adrien Hyppolite, stated that European businesses are missing out on returns that US competitors routinely receive by sitting on idle cash. The company aims to achieve $1 billion in AUM by year's end, a realistic target given its current momentum and partnerships with fintechs like Fygr and Memo Bank to broaden distribution.
With its cutting-edge blockchain-based technology integrated with regulatory compliance, Spiko is changing the game by making it easy for anyone to put their cash to work. The startup is positioned just outside the top five tokenized MMFs globally, with a clear trajectory toward multi-billion dollar scale as it expands product offerings and distribution channels.
- Spiko, the French startup making waves in the financial industry, has leverage blockchain technology to tokenize money market funds, creating a quicker, more cost-effective method for businesses to earn daily interest on their idle cash without lock-ups.
- After a successful Series A funding round that raised $22 million, Spiko has amassed nearly $400 million in assets (AUM) from over 1,000 businesses, showcasing the potential for profitable investments in the European market.
- Spotting a significant market opportunity for addressing the idle cash issue in Europe, Spiko has attracted notable backers such as Nikolay Storonsky, who sees the startup's potential to bridge the cash yield gap by offering insights into profitable capital allocation strategies for businesses.
- As the co-founder, Paul-Adrien Hyppolite emphasizes, Spiko's mission is to empower European businesses to maximize returns by eliminating the cash idle loss, transforming the finance landscape through innovation, technology, and strategic investments.
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