A fintech business disrupting short term funding markets with innovative financial products and process technologies.
- Eden Rock closed an investment in the company in June
- TreasurySpring is a regulated platform that has been created to unlock short-term funding markets by facilitating the creation, issuance of, and investment in a new class of financial instrument – Fixed-Term Funds (FTFs) that allow investors (lenders) to diversify away from their current exposure to unsecured financial institution risk, while increasing security and/or increasing yields
- It seeks to solve issues in multi-billion dollar markets caused by changes in regulation, interest rates and credit risk and enables peer-to-peer “deposits” between investment-grade firms, as well as providing access to the treasury investment strategies employed by the largest, most sophisticated financial institutions
- The upcoming integration with Europe’s largest Treasury Portal (NEX Treasury) is expected to place TreasurySpring’s FTFs on the desktop of thousands of potential investors controlling more than $100bn of cash and short-term investments
- The first trades were successfully tested on the platform in June
- As the full suite of products is developed, the platform will offer issuers access to a much larger pool of investors with significantly lower costs, enabling flexible advances on any day, in any currency and for any tenor up to one year and investors will be able to select from a range of highly-rated counterparties in the sovereign, bank and corporate sectors
Treasury Spring in the Press
A spinout from Shell that is a leader in advanced heater technology for the oil and gas industry.
- Eden Rock led a $7m Series A funding round that was completed in June, with funding from a consortium of investors with experience in the energy sector and cable manufacturing technology, including Shell Ventures LLC
- The company is a spinout from Shell that provides advanced heater systems for the oil and gas industry. Its patented and proven technology is based on Shell’s extensive research & development and piloting efforts to increase well production, improve reservoir performance, and provide breakthroughs in deepwater developments
- The company provides long, durable continuous heater cables with high power output for which there are numerous applications, including viscosity improvement, flow assurance, enhancement of steam operations and deepwater/subsea processes
- Its management team includes key players within Shell’s heavy oil and deep-water technology program, with experience ranging from technology development, field development planning, and project execution to operations. This provides Salamander with a solid team that is ready to bring the technology to market
Salamander in the Press
A company developing disruptive, scalable, optical processing technology, which has the potential to revolutionise the high performance computing market by operating at levels well in excess of what can be achieved with electronics at a fraction of the cost and energy consumption.
- The company commenced discussions with IBM’s AI group in San Jose, to explore how Optalysys’ technology may be implemented into their Watson service. They have also held initial meetings with British Telecom, who are heavy users of CNNs in particular in the areas of 5G, network infrastructure analysis and SMS text analysis, and with Amazon Web Services who have flagged 5G as the top application area for CNNs
- Optalysys filed its first patent covering the Optical Deep Learning approach during the quarter
- During the second quarter, the company successfully completed a £1.25m capital raise through the issuance of a Convertible Loan Note. Eden Rock participated in this investment and assisted the company in raising capital from new investors
- The company continues to make excellent progress on the technology front, particularly on the application of optical processing for deep learning, an area for which it filed its first patent during the quarter
- The company is continuing discussions with potential investors interested in taking part in a significant Series A raise, expected to close during the second half of this year. There has been considerable interest in the raise
Optalysys in the Press
An Artificial Intelligence company that offers a cognitive reasoning platform designed for business people, putting the subject matter expert central to the encoding process. It enables businesses to automate knowledge work, delivering efficient operations and innovative new solutions.
- The company has recently made some changes to its sales team, leading to an expansion of Rainbird’s sales division to a team of four
- Revenues for the year ending July are expected to reach £1.8m compared to £0.4m in the prior year and monthly recurring licence revenues are approaching £80k
- Grant Thornton and PWC recently signed six figure license deals, and similar deals will hopefully be closed in the near term with Vodafone and Deloitte
- The company is setting ambitious financial targets for the coming year; revenues of £5m and £350k of monthly recurring revenues by July 2019. The pipeline of potential clients includes Prudential, Deutsche Telekom and Simmons & Simmons
- The company’s consulting arm, Heron, has made some changes to its core team and will be more consultancy-led to uncover larger, high-value services. The team is working on a number of projects, most notably with Prudential
- With respect to financing, now that revenues are increasing, less dilutive venture debt has become an option, and the company is looking to boost working capital in the next few months through a debt facility which is currently being brokered. Beyond that, it will be exploring a full range of funding options including further informal investment, venture debt and venture capital to continue on its growth path
Rainbird in the Press
A provider of online teaching services for schools supporting thousands of children who are overwhelmingly from disadvantaged backgrounds.
- In June, the company launched a new brand and platform called Matr.org to directly support students working from home, and recruit tutors working anytime, anywhere. The expectation is that this will enable a more scalable and profitable model than the current structure
- The Third Space Learning brand will remain dedicated to schools in the UK and globally but will transition onto the Matr platform
- The company expects to launch its offering direct to students at home and tutors anyway in September, with a maths programme for 1 to 7 year olds
- The brand strategy behind Matr reflects the company’s ambition to create a platform that can host learning and training programmes to intelligently connect students and tutors from around the world
Third Space Learning in the Press
Below are some recent highlights from other investments we have made:
Companies we met with during the quarter but passed on included an enterprise grade alumni management platform, a cloud based platform for digitising retail businesses, a hardware cyber security company, a provider of virtual guided property viewings and a real estate tenant validation platform. We are currently reviewing a number of opportunities, including a subscription based video on demand company, a cyber security company and a quantum security company.