The global trade finance gap has only widened in recent years, with increasing supply chain turbulence and the aftereffects of the global pandemic ballooning the gap to $1.7 trillion worldwide. Although small and medium-sized enterprises (SMEs) make up a vast proportion of the world’s cross-border trade volume, these organizations remain frustratingly shut out of critical financing services.
Since its founding last year, Israeli fintech platform 40Seas has billed itself as the solution to closing the world’s trade finance gap. Arising from the legendary Fintech Foundry run by Team8, the company is developing a vastly more efficient framework for SMEs to execute trade over international borders. On January 10, 40Seas announced a successful raise of $111 million in capital to finance these efforts, comprised of $11 million in seed funding led by Team8 and a new $100 million credit facility from ZIM Integrated Shipping Services.
“Given today's harsh macroeconomic conditions, now more than ever, SMEs need easy access to financing to have the best chance of survival,” said 40Seas’ Co-Founder and Chief Executive Officer, Eyal Moldovan, in an announcement on the fundraise. “40Seas wants to drive a sea change in how companies access finance, with a unique solution that makes life easier for importers and exporters, serving both directions of a cross-border trade.”
