Yield Exchange announces $700K pre-seed raise

Yield Exchange, a Vancouver-based fintech startup, has raised CAD $700,000 in pre-seed capital. The funding will accelerate the company’s national expansion plans.

Founded by three veterans of the traditional banking industry, the platform enables entities of all kinds — from municipalities and universities to non-profit organizations and strata corporations — to find, compare, and negotiate investment rates for guaranteed investment certificates (GICs) through an easy-to-use online marketplace.

From that founding team, CEO Yvette Wu has had multiple experiences in banking, which – combined with her family background – had her knocking on the door of entrepreneurship. The birth of her first child kicked that door in. So, how does it feel to jump from a bank to a fintech company? “You can actually get shit done,” Wu told me last year.

Yielding to nobody: Speaking of getting shit done, Yield Exchange originally set out to raise $500,000 in this round. Despite searching for capital in a tumultuous time for the tech industry, the company oversubscribed its funding. The outfit touted its ability to show significant early traction and find investors who understood the space, and could offer strategic value at favourable terms, as paramount. These investors include Tiny Capital, Gustavson Capital, Mavan Capital Partners, The Firehood, and angel investors.

Yielding dividends: “There’s no arguing that it’s a difficult time for startups to raise in this economic climate,” Wu pointed out. “With that said, if you are showing signs of early success and market acceptance, it is still possible to find strategic investors who will understand the value you are creating for your stakeholders and the economy.” Not yielding anytime soon: The pre-seed raise compounds the momentum Yield Exchange was building last year. In October, it received the $10,000 Innovate BC Woman-Led Venture Award at the New Ventures BC Competition. Then, in November, Wu won big not once but twice at SAAS North in Ottawa. She took home the top prize at 2022 AWS Pitchfest and also secured $100,000 from Firehood Angel Camp, the same firm that has invested in Yield Exchange’s pre-seed.

In addition to its national expansion, Yield Exchange also plans to grow its current product offering of wholesale GICs to include retail GICs, overnight rates, and bonds. “With interest rates going up and the economy in flux, it’s more important than ever that organizations negotiate the best possible rates for their investments,” Wu said. “Traditionally, this has been a time-consuming process that involves treasurers reaching out manually to financial institutions in hopes of completing due diligence and finding competitive rates. We’re excited to offer a transparent digital solution that helps both depositors and financial institutions build better relationships.”