Overbond Ltd, a Toronto-based bond issuance platform, has raised $7.5 million in seed-stage financing. The investment was made by Morrison Financial Services Ltd. Founded last year by CEO Vuk Magdelinic and Head of Product Han Ryoo, Overbond has developed technology to help digitalize bond issuance, connect market participants, and make transactions more transparent and secure. Earlier in 2016, the company unveiled Overbond BPS, a cloud-based solution for streamlining dealer-issuer communication and providing advanced market analytics.
Photo (left to right): Han Ryoo and Vuk Magdelinic, co-founders of Overbond Ltd.
Overbond Secures $7.5M in Seed Financing
Injection of Capital Positions Overbond to Transform Investment Banking and Bond Issuance Market
TORONTO — June 16, 2016 — Overbond Ltd., the first fintech platform for digital bond issuance, has closed a $7.5-million seed financing round with Morrison Financial Services Limited. The deal marks a significant step forward for the company as the first fintech entrant into the new bond issuance market. Overbond plans to use the financing to expand its fully-digital primary bond issuance platform.
“Overbond’s experienced team is making a significant impact in institutional capital markets,” said David Morrison, president of Morrison Financial. “Our investment combined with Overbond’s vision will no doubt have a significant impact on how new bonds are issued.”
Overbond brings benefits to everyone in the primary bond market — higher transparency, better price discovery, and investor diversification. It also helps to streamline all stages of the process from bond origination through deal execution, analytics and communication.
“We look forward to the next phase of working with our clients – investment banks, corporate and government bond issuers and fixed-income investors – to help investment banking and bond issuance transition to a digital approach,” said Vuk Magdelinic, CEO of Overbond.
Charting the Way in Digital Bond Issuance
Earlier this year, Overbond introduced Overbond BPS, a cloud-based solution that streamlines dealer-issuer communication and provides advanced market analytics. Every year corporate treasurers receive on average 2,314,900 bond market updates by email and consume 125,000 hours of their time in managing this information in Canada alone. This problem is orders of magnitude bigger in the U.S. Overbond digitizes the end-to-end process, allowing dealers to focus on their clients’ needs.
Toronto-based Overbond brings all bond market participants together through a platform that makes new bond issuance digital, transparent, and secure. Overbond connects corporate and government issuers with dealers and investors directly. Overbond emerged from the MaRS fintech cluster and the Communitech technology innovation super-cluster – two globally renowned centres of technology and innovation. Overbond’s momentum is rooted in the strength and experience of its team, which comprises industry professionals in the fields of fintech software, capital markets, technology and legal compliance – a team whose experience draws from Wall Street, Bay Street, and Silicon Valley. For more information, please visit http://www.overbond.com
Photo courtesy of Overbond Ltd