ReSource Finance raises $1.7 million to offer undercollateralized credit to Web 3 businesses
ReSource Finance is a decentralized credit protocol, raised $1.7 million funding round led by Future Perfect Ventures, NGC Ventures, and ExNetwork to enhance decentralized credit access to Web 3 businesses.
Other investors in the round include Davoa Capital, BlockRock Capital, Moonwhale Ventures, Follow the Seed, Floem Capital, Flori Ventures (a Celo-focused ecosystem fund), and Tokenomik.
The financing will be used to boost customer acquisition on the ReSource Finance dApp and better its reputation-based decentralized lines of credit to small-scale businesses. In a statement, the firm reiterates the need to provide credit to these “authentic economy builders” on a peer-to-peer platform without an intermediary.
Jalak Jobanputra of Future Perfect Ventures, the lead investor in ReSource, said the latest funding aims to complete the common goals shared with ReSource. Future Perfect Ventures launched in 2014 with a goal of partnering with entrepreneurs, providing business consultation, and building new business models in an effort to “create a more participatory, equitable and sustainable economy.”
ReSource is expected to use the funding to provide a platform for much-needed credit to startups and small businesses locked out of the traditional credit facilities.
ReSource is built on the Celo Network and leverages its fast and low fee platform allowing any business to easily access loans from their peers. The platform automatically creates a novel reputation system to rate the creditors in order to select the best businesses to extend lines of credit. ReSource uses diverse data oracles to create creditworthiness scores by providing data on a number of factors including FICO credit scores, bank statements, accounting software APIs, and marketplace reviews.
“ReSource is redefining the DeFi mutual credit economy. Aligned with Celo’s mission of creating the conditions of prosperity for all, ReSource is leading the way in uncollateralized credit with crypto for small businesses,” said Xochitl Cazador, Ecosystem, Celo Foundation.
The continued development in decentralized finance (DeFi) is clear and ReSource aims to compete with other DeFi lending platforms in the market. Maria Alegre, Co-Founder and Managing Partner of Flori Ventures, a Celo-focused pre-seed fund that believes ReSource holds an advantage over its competitors “because of its potential for financial inclusion.”
“ReSource has built a product for real-world businesses to access the benefits of DeFi,” Alegre said. “Their novel stablecoin design enables these businesses to start spending and earning crypto today based upon their reputation rather than their knowledge or ownership of crypto.”
About ReSource:
ReSource grants businesses access to interest free, uncollateralized credit they can use to buy from each other on the ReSource Marketplace.Crypto startups cover their SaaS & Web 3 costs across the spectrum from blockchain node infrastructure hosting, crypto accounting & API calls.
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