Lending Protocol Goldfinch Raises $11 Million Series A Funding Led by a16z

Goldfinch announced the closing of an $11 million financing round led by venture capital giant Andreessen Horowitz (a16z).

Lending Protocol Goldfinch Raises  Million Series A Funding Led by a16z

According to The Block on June 16, cryptocurrency prices have plummeted, but enthusiasm for funding in the DeFi market continues unabated.

Goldfinch, a decentralized lending protocol, is one such example. On Wednesday, the project announced the closing of an $11 million funding round led by venture capital giant Andreessen Horowitz (a16z). The company has grown 2.5 times in the past few months. Goldfinch draws loans for borrowers in the event of a shortage of collateral. This is a unique product. Because the market mostly requires borrowers to provide more collateral than the value of the borrowed money.

Mike Sall, a former Coinbase product analyst, co-founded Goldfinch with Blake West, a former Coinbase back-end engineer.

While the DeFi marketplace is mostly populated by individual investors, Goldfinch enlisted a range of institutions to help build the platform. the DeFi marketplace consists of borrowers looking for capital, liquidity providers and lenders. Credit funds managing billions of dollars in loans and fintech companies seeking to borrow are watching this emerging space.

In a sense, Goldfinch mimics the traditional lending marketplace where banks assess the credit of a given borrower based on credit and risk analysis. says West, “Lenders are the core players that help determine credit worthiness.” Nonetheless, the mechanism by which users demonstrate credit worthiness in the program is decentralized.

The press release explains.

The protocol enables credit approval by using the concept of ‘trust through consensus’. Borrowers can prove creditworthiness based on the collective assessment of other participants, rather than on their own crypto assets.”
The new funds will be used to hire new employees, including a business operations manager and several software engineers.

The financing saw participation from Mercy Corps Ventures, A Capital, SV Angel, Access Ventures, Divergence Ventures, former Coinbase CTO Balaji Srinivasan and Messari CEO Ryan Selkis.

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