US-based liquidity platform Turbine Finance has raised $13m in Series A funding, co-led by Alpha Edison and TTV Capital, alongside B Capital, Fin Capital, and Sozo Ventures.
The new funding, along with an earlier $8.75m Seed round, brings Turbine’s total equity funding to $21.75m.
The company has also secured a $100m warehouse facility from Silicon Valley Bank, a division of First Citizens Bank.
The loan allows general and limited partners to borrow against their existing fund investments, providing access to capital that was previously inaccessible.
The warehouse facility and funding bring Turbine’s total financial support to $121.75m.
Silicon Valley Bank warehouse lending market manager Brian Foley said: “Through its innovative lending platform, Turbine is helping venture investors address liquidity challenges by allowing funds to provide flexibility to their investors.
“SVB is thrilled to continue our strong relationship with Turbine, and we look forward to helping it succeed and scale since the team provides a critical resource for private equity and venture firms.”
Alpha Edison managing partner Nate Redmond said: “With Turbine, investors will benefit from the same set of leverage and liquidity tools found in public markets and real estate.
“We are thrilled to solve this challenge for the venture ecosystem and to create the foundation for the future of private assets. The team at Turbine, whom we have come to know and trust over the past decade, is uniquely suited to solve this problem at scale.”
Founded by venture investors and bankers, Turbine addresses the challenges of inaccessible capital, providing investment firms with on-demand liquidity solutions.
Its platform enables private equity and venture firms to offer limited partners access to the value of their portfolio investments without reducing exposure.
Limited partners can leverage existing investments to make new commitments or fulfill capital calls.
Turbine partners with firms to underwrite and secure portfolios, using machine learning and data science to streamline processes.
The company’s founding team and advisory board bring decades of experience from institutions like City National Bank, Silicon Valley Bank, and various fintech companies.
Led by seasoned fintech founder Mike Hurst, Turbine aims to expand its data science team and onboard seasoned funds led by experienced managers.
Turbine founder and CEO Mike Hurst said: “The broader private equity market, inclusive of venture and real estate funds, accounts for more than $13tr in capital globally.
“Substantially all of this capital base is locked away in illiquid general and limited partnership positions. Venture capital and private equity returns are among the highest of any asset class, but liquidity has been extremely limited and unpredictable.
“By empowering alternative asset investors to access their capital on their own schedule, Turbine will unlock increased investment to high-performance funds.
“We are proud to bring this solution to market with the backing of world-class fintech investors, and with the guidance and partnership of Silicon Valley Bank.”
