Dynamic Hedging Specialist Kantox Teams Up with Silicon Valley Bank
Kantox’s Dynamic Hedging solution is the latest FX risk management option for U.K.-based corporate clients of Silicon Valley Bank. The deal with SVB, announced this week, is Kantox’s first bank partnership.
“By offering our Dynamic Hedging software to their corporate clients,” Kantox co-founder and CEO Philippe Gelis said, “we are providing a sophisticated solution which makes the treasurer’s job easier, while providing added value to SVB’s existing FX services.”
Kantox’s Dynamic Hedging technology makes treasury operations more efficient by automating FX risk management. The solution automatically hedges transactions in real-time to mitigate risk and improve competitiveness. Treasurers also gain greater visibility into FX exposure.
Kantox and SVB are no strangers. Silicon Valley Bank was behind the $5.6 million (€5 million) venture debt financing Kantox picked up in April. This marked the second such arrangement between the two parties, having previously inked a financing agreement in December 2017.
Calling Kantox “a technology partner that understands the innovation economy and the sectors in which they operate,” Erin Platts, Head of EMEA and President of SVB’s U.K. branch, explained the importance of efficiently managing FX operations for many of the bank’s corporate clients. “Through this partnership with Kantox, we aim to create genuine value for our clients by bringing automation and efficiency to their transactional FX management activities.”
Founded in 1983, Silicon Valley Bank provides financial services and expertise to companies in innovation centers around the world. More than 30,000 startups have benefitted from the bank’s funding.
Kantox’s first bank partnership announcement comes just over a month after CEO Gelis discussed the challenges of fintech/bank partnerships in a candid post at Kantox’s LinkedIn page.
“One of my key lessons learned is that navigating banks is very complex,” he wrote. “There are many people there whose jobs are basically to spend time speaking with fintechs about innovation – and not much else.” His takeaway? Among other insights, Gelis urged fellow fintechs: “Do not look for partnerships, instead engage with banks that are approaching you proactively.”
Kantox demonstrated its Peer FX solution at FinovateEurope 2013. The London, U.K.-based firm, founded in 2011, works with both top tier companies and SMEs to help them save money when exchanging foreign currencies. Kantox estimates that for every $100,000 transaction, it is able to save clients an average of $1,500. Offering spot and forward transactions in more than 20 international currencies, Kantox serves businesses in a wide variety of verticals ranging from e-commerce to travel to digital advertising.
In June, Kantox announced that clients have exchanged more than $10 billion on its platform. Last fall, the company was named to CB Insights Fintech 250 roster of the fastest growing fintech startups in the world. Kantox has raised more than $35 million in funding, and includes Partech and Idinvest Partners among its equity investors.
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