Marco – the trade finance platform focused on the needs of SME exporters in Latin America – announced it successfully closed a $12 million Series A funding round. The funding round was led by IDC Ventures, with additional participation from IDB Lab (the innovation/venture laboratory of the Inter-American Development Bank Group), Barn Invest, SquareOne Capital, Arcadia Funds, Florida Funders, Miami Angels, Kayyak Ventures, and Neer Ventures, and others.
Launched in 2020 by Jacob Shoihet and Peter D. Spradling, Marco has quickly established itself as a major 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 and easy access to financing and evolving to offer comprehensive services built to address the unique challenges SMEs face.
Marco’s approach to trade finance is addressing the $350 billion trade financing gap in Latin America. By utilizing advanced and proprietary risk models that process data in real-time, Marco mitigates capital loss, having already surpassed $540 million in cumulative volume funded since inception across over 63,000 receivables against 1,700+ primarily investment-grade debtors.
The platform offers a holistic 360-degree suite of products and services built for SMEs, including LLC creation, bookkeeping, banking, and financing tools like factoring and asset-based lending. And these services were designed to close the gap faced by LatAm exporters, often underserved by banks because of perceived risks associated with the lack of history and size. For the first time since 2003, Mexico has been exporting more to the US than China, highlighting the significant trend of nearshoring – and Marco plays a crucial role in facilitating this shift.
This funding marked a significant milestone in Marco’s journey, strengthening a commitment to ESG efforts within the LatAm region. With the backing of IDB Lab, which utilizes 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.
KEY QUOTES:
“We are thrilled to enter this new phase of growth catapulted by the unwavering support of our investors who believe in our mission. 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.”
– Jacob Shoihet, co-founder and CEO of Marco
“It’s great to be part of the transformative impact Marco’s platform is having on the Latin American trade sector. The overwhelming demand for Marco’s solutions highlights the critical need to modernize and automate operations for SME exporters in LatAm, who have been long constrained by a lack of financing as well as antiquated ‘pen and clipboard’ workflows. By centralizing operations and democratizing access to capital, Marco is not just facilitating business growth; it’s profoundly impacting lives by catapulting an entire region and industry into the digital age. Backed by an exceptional team and a clear vision for a better future, Marco shines as a beacon of welcome disruption, and we’re excited to support its journey.”
– Bobby Aitkenhead, Managing Director of IDC Ventures
“Through my own journey as an SME exporter, I’ve experienced the struggle of securing essential financing for growth and faced many challenges when looking for alternatives that could support my business.”
“Marco’s trade finance solutions, especially our factoring model, not only align perfectly with SMEs needs but also minimize risk along the way. As we embark on this milestone, we extend our deepest gratitude to all those who have played a pivotal role in our journey – from our dedicated team members to our invaluable partners and mentors. Together we are changing the risk perception associated with SMEs and shaping the future of cross-border trade enabling companies to streamline operations and invest in growth.”
– Marco co-founder and COO Peter Spradling
