Marco Secures $12 Million Series A Funding to Revolutionize Trade Finance for Latin American SMEs

Miami & Montevideo based trade finance platform Marco has announced the successful closure of a $12 million Series A funding round, led by IDC Ventures. The financing round saw participation from a consortium of other investors, including IDB Lab, Barn Invest, SquareOne Capital, Arcadia Funds, Florida Funders, Miami Angels, Kayyak Ventures, and Neer Ventures.

Established in 2020 by entrepreneurs Jacob Shoihet and Peter D. Spradling, Marco has swiftly emerged as a pivotal player in the trade finance landscape, boasting a team of over 50 professionals across its operational hubs in Miami, New York City, and Montevideo, Uruguay. The company’s primary focus is on providing a comprehensive suite of financial services tailored to the unique requirements of Small and Medium-sized Enterprises (SMEs) engaged in cross-border trade within Latin America.

Jacob Shoihet, co-founder, and CEO of Marco expressed his enthusiasm for the company’s trajectory, stating, “We are thrilled to enter this new phase of growth propelled by the unwavering support of our investors who believe in our mission. Marco is dedicated to serving a historically underserved cohort by offering a comprehensive platform covering everything from financing to compliance and beyond.”

With an innovative approach to trade finance, Marco aims to address the $350 billion trade financing gap in Latin America. The platform leverages advanced risk models to process data in real-time, effectively mitigating capital loss. Since its inception, Marco has facilitated over $540 million in cumulative volume funded, spanning across more than 63,000 receivables from over 1,700 primarily investment-grade debtors.

Bobby Aitkenhead, Managing Director of IDC Ventures, underscored the transformative impact of Marco’s platform on the Latin American trade sector, emphasizing the critical need to modernize and automate operations for SME exporters in the region. Aitkenhead commented, “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.”

Marco’s holistic suite of products and services addresses the specific challenges faced by SMEs, including LLC creation, bookkeeping, banking, and financing tools such as factoring and asset-based lending. This comprehensive approach aims to bridge the financing gap for Latin American exporters, who often encounter difficulties accessing traditional banking services due to perceived risks associated with their size and operational history.

Peter D. Spradling, co-founder, and COO of Marco shared his personal experience as an SME exporter, highlighting the obstacles encountered in securing essential financing for business growth. Spradling emphasized the alignment of Marco’s trade finance solutions with the needs of SMEs, stating, “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.”

The successful funding round not only marks a significant milestone for Marco but also reinforces its commitment to Environmental, Social, and Governance (ESG) efforts within the Latin American region. With the backing of IDB Lab, Marco is poised to launch new sustainable initiatives aimed at addressing the segments of the LatAm SME market most underserved by the current financial system.