• Obligate, a blockchain-based debt securities platform, has raised $4 million in a seed extension round.
• The funds will be used to scale the platform, which is set to go live on the Polygon blockchain next month.
• The investors in the round included Blockchange Ventures, Circle Ventures, Earlybird, and SIX Fintech Ventures.
Obligate, a startup offering blockchain-based regulated debt securities, recently announced the closing of a $4 million seed extension round. The funds will be used to scale the platform, which is set to go live next month on the Polygon blockchain, and will allow companies to issue debt securities such as bonds and commercial paper in a regulated decentralized finance (DeFi) environment. The investors in the round included Blockchange Ventures, Circle Ventures, Earlybird, and SIX Fintech Ventures. Combined with its initial fundraise in late 2021, Obligate’s seed round now totals more than $8.5 million.
Obligate was formerly known as FQX, and its platform enables companies to access an alternative route of fundraising. This could become particularly attractive as venture capital firms and traditional finance (TradFi) investors become more cautious following the collapse of multibillion-dollar centralized crypto exchange FTX.
The company’s co-founder and CEO, Benedikt Schuppli, believes that Obligate offers the best of both worlds. He says the platform “combines the benefits of DeFi with the trust and regulation of TradFi”. It enables companies to raise money through debt securities while still being compliant with existing regulations.
The investors in the round clearly saw the potential of Obligate’s platform. Blockchange Ventures partner, Ran Senderovitz, said that “Obligate is a prime example of the potential of tokenized debt in the DeFi space. We are excited to be investing in the team and the platform, and we look forward to seeing them disrupt the venture capital and traditional finance industries.”
The funds from the seed extension round will be used to expand Obligate’s team and to continue the development of the platform. With the launch of the platform on the Polygon blockchain, companies will be able to access a new and innovative way to raise funds. It will be interesting to see how Obligate’s platform is received by the market and how it will change the venture capital and finance industries.