DeFi
DeFi startup Huma Finance secured $8.3 million in a seed spherical to construct an income-backed lending protocol.
Huma’s first product is an on-chain factoring market, which allows people or companies to borrow in opposition to their future revenue somewhat than current token holdings.
Race Capital and Distributed International co-led the seed spherical. ParaFi, Circle Ventures and Robotic Ventures are additionally among the many traders who participated within the spherical.
The protocol permits borrowing based mostly on money move somewhat than tokens. Borrowing will be made in opposition to receivables equivalent to pay stubs or invoices.
“Revenue is probably the most essential enter in conventional lending, however there is no such thing as a decentralized finance lending protocol at this time that understands revenue portfolios of companies or folks,” mentioned Edith Yeung, common companion at Race Capital, in a launch. “Huma Finance will begin with the worldwide factoring companies market, which alone was valued at $3.5 trillion in 2022.”
Preliminary launch companions embody stablecoin issuer Circle and blockchain fee networks Request Community and Superfluid.
“Our mission at Request is to carry interoperability to invoicing and have apps work together with one another in a permissionless manner,” mentioned Christophe Lassuyt, president at Request Basis. “For instance, a consumer may subject an bill in Request Finance and safe rapid financing by means of Huma.”
Final yr, Huma received the DeFi hackathon observe at ETHDenver. Huma was based by tech trade veterans who’ve labored at organizations equivalent to Meta and Google. Three of the co-founders have been executives at Earnin, a number one fintech within the U.S.
