Fintech startup Sharegain, whose securities lending platform allows any investor to generate revenue through loaning out their financial assets, has raised a total of $12mn to support the roll-out of its platform to private banks, online brokers and robo-advisers. In addition to scaling up its operations with family offices and asset management firms in line with significant early demand.
For over 40 years, some of the world’s largest investors have made additional gains through securities lending—loaning out their stocks, bonds and ETFs in return for a payment known as ‘lending revenue’. Securities lending is a $2.5tn market, but this represents a tiny proportion of the industry’s potential; there are over $40tn in assets currently sitting idle, globally. Until now, the sector has been confined to a small number of large institutional investors. As the first fintech to receive FCA approval to offer its SLaaS platform to retail investors, Sharegain aims to create a more transparent and effective market that’s open to any investor with all the benefits it will bring: from greater liquidity, to better data, to eventually building long-term trust in capital markets.
The Sharegain team blends the best of two worlds—British capital markets expertise and Israeli technology talent. Its senior team has a combined 70 years’ experience in technology and finance. Boaz Yaari, CEO and co-founder, also brings deep personal insight of capital markets and securities lending. With 14 years’ experience in capital markets, he has held roles as a derivatives trader at a top-tier bank, and portfolio manager at various European hedge funds.
For financial institutions seeking additional revenue in a low-yield and volatile environment, Sharegain will simplify the securities lending process at scale – with a regulation-proof platform that is effortless to implement. For private investors and wealth managers, Sharegain opens up the opportunity of securities lending for the first time with a transparent, controlled, and simple solution.
An undisclosed group of lenders are already using the Sharegain platform; the business is also collaborating with global financial institutions to drive best practice and a more transparent approach to securities lending.
Boaz Yaari, CEO and Co-Founder of Sharegain, explained: “This is a 40-year, $2.5tn industry whose full potential has never been fulfilled. A performant securities lending market will not only benefit all investors in an increasingly volatile and low-yield environment, but it will be good for the market overall. It brings greater liquidity and efficiency, ensuring the settlement of certain trades, promoting price discovery and facilitating market making.
“The old way of securities lending was complex, opaque and outdated, in a ‘need to know’ system that few understood and even fewer controlled. Now, for the first time, it is effortless, effective and open to any investor. We’re excited to be on-boarding investors globally and helping their wealth work harder for them.”
Mike Lobanov, General Partner at Target Global, added: “With a first class team, strong market fit and significant early demand from institutions and private investors, Sharegain already displays a mix of market-shaping potential and ability to execute rarely seen among startups in capital markets. We’re excited to be working with the Sharegain team as it scales-up operations and unlocks the huge potential of the securities lending category.”