Marco, the trade finance platform catering to the needs of SME exporters in Latin America, has announced the successful closure of a $12 million Series A funding round.
The investment round was reportedly “led by IDC Ventures, with additional participation from IDB Lab (the innovation and venture laboratory of the Inter-American Development Bank Group), Barn Invest, SquareOne Capital, Arcadia Funds, Florida Funders, Miami Angels, Kayyak Ventures, and Neer Ventures, among others.”
Founded in 2020 by entrepreneurs Jacob Shoihet and Peter D. Spradling, Marco says that it has “established itself as a key player in the trade finance sector, with a team of over 50 employees across its offices in Miami, New York City, and Montevideo, Uruguay.”
The company is committed to “building the operating system for Latin American SME exporters engaged in cross-border trade – providing them with fast, easy access to financing, and evolving to offer a comprehensive suite of services designed to address the unique challenges SMEs face.”
Jacob Shoihet, co-founder and CEO of Marco, said.
“We are looking to serve a cohort that has been historically underserved, offering a comprehensive platform that encompasses everything from financing to compliance and beyond. With our suite of solutions, including LLC formation, bookkeeping, FX payouts, cargo insurance, and banking services, we are supercharging SMEs in trade and ultimately creating an economy that works for everyone.”
Marco’s innovative approach to trade finance is “addressing the $350 billion trade financing gap in Latin America. By leveraging advanced, proprietary risk models that process data in real-time, Marco dynamically mitigates capital loss, having already surpassed $540 million in cumulative volume funded since inception across more than 63,000 receivables against 1,700+ primarily investment-grade debtors.”
The platform offers a holistic 360° suite of products and “services tailored to SMEs, including LLC creation, bookkeeping, banking, and financing tools such as factoring and asset-based lending. These services are designed to close the gap faced by LatAm exporters, who are often underserved by banks due to perceived risks associated with their lack of history and size. For the first time since 2003, Mexico is exporting more to the US than China, highlighting the significant trend of nearshoring – and Marco plays a crucial role in facilitating this shift.”
This fundraise marks a significant milestone “in Marco’s journey, further strengthening its commitment to ESG efforts within the LatAm region.”
With the backing of IDB Lab, which leverages new ways “to drive social inclusion, environmental action and productivity in Latin America and the Caribbean, Marco is poised to launch new sustainable initiatives aimed at reaching the segments of the LatAm SME market most underserved by the current financial system.”