New investment: TheCurrencyCloud, Cloud automation for FX

My latest investment is in a company called theCurrencyCloud (I know, I know) a.k.a FX Capital, a platform business for the automation of deliverable foreign exchange.  Our goal is to radically simply cross-border payments with a cloud / API approach.  Think of it as Stripe for FX.

I co-invested with my friend Sean Park at Anthemis who seed funded the business together with City of London group.  It’s a classic case of City insiders embracing the age of platforms.

We want to be a Foreign Exchange Automation Engine, sold through API as a Platform and as SaaS for Business.  The current model is broken, highly manual and non-transparent.  It is characterized by misalignment between the client and the provider, with the classic bait-and-switch being great rates at the outset and profits on repeat business.    Banks usually package it with other services but take high margins.  

You might say FX is one of the last great ripoffs in finance.

With TCC, we will bring the power of cloud, transparency and automation to FX for Business.  We can take the hassle out of FX by providing 

  • Automation through the API
  • Transparency 
  • Value through low spreads

I started working on this about 15 months ago.  There was work involved in focusing the strategy, simplifying the capital structure and attracting a high profile CEO.  The company was started by Nigel Verdon and Nick Bourner, and with my buddy Shane Burgess at Odgers we found our new CEO Mike Laven, a Silicon Valley vet.

I always believe strongly in leveraging the unique strenghts of the ecosystem you live in.  Mike Butcher at Techcrunch nailed the #builtinLondon aspect of this company in his recent post (The Currency Cloud Secures $4M To Disrupt The Trillion Dollar Foreign Exchange Market).

A trillion, innit.

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