Fence, a technology platform rebuilding the infrastructure of asset-backed finance, has raised $20 million in new funding to accelerate its expansion into the U.S. market and deepen its product capabilities. The round was led by Galaxy Ventures and was oversubscribed, with participation from seed investors ParaFi Capital and Crane Ventures Partners, both of whom reinvested only months after Fence’s seed round.
The New York-based company targets the $15 trillion asset-backed finance market, which continues to rely on manual processes, spreadsheets, and email despite a decade of technological transformation in lending. Fence replaces legacy trust and agency providers — including verification, calculation, collateral, and paying agents — that sit between borrowers and lenders in asset-backed finance with a unified, software-driven system that verifies assets, calculates borrowing bases, enforces covenants, and moves cash and collateral programmatically in real time.
Since launching, Fence has grown to $1.5 billion in assets under administration across live facilities funded by leading financial institutions including BlackRock, Fortress, i80 Group, and BBVA. In live facilities, the platform has delivered up to 40% lower cost of capital for borrowers and up to 80% lower operational overhead. In one facility with BBVA, Fence enabled near-instant drawdowns several times a day where funding had previously occurred weekly or monthly.
The new capital will also fund growth of Fence’s engineering team and integration of AI-driven automation, positioning the company to power an emerging category of agentic debt capital markets operations.
KEY QUOTES:
Asset-backed finance is the backend of the real economy, but it still runs on PDFs, spreadsheets, and email threads. Lending has been transformed over the last decade including underwriting, origination, and risk management. However, debt capital markets, the layer that actually funds lending operations, has not kept up technology-wise with the rest of the sector. Capital providers want control, but nobody wants the operational burden. Fence provides real-time transparency, automated execution, and infrastructure that actually scales.
Others digitize the paperwork. Fence rebuilt the plumbing. The data that verifies the asset and the collateral is the same data that moves the money. That’s where the real value is. Originate an asset, sell it immediately, recycle capital. That is what debt capital markets look like when the infrastructure actually works.
We’re building the rails for how debt capital markets will operate going forward. Not just making the current system more efficient, but preparing for a future where capital moves in real time, risk is fully transparent, and financial infrastructure is truly internet-native.
Juan Montero, Co-Founder and CEO, Fence
Structured credit has operated for decades on infrastructure that was never designed for today’s velocity or complexity. What Stripe did for payments, Fence is working to do for debt capital markets. Fence is not layering software on top of a broken system, they are rebuilding the system itself. Their approach to real-time verification, programmable cash flows, and institutional-grade execution represents a step change for asset backed finance, in our view.
Will Nuelle, General Partner, Galaxy Ventures