Spiko, a Paris-based fintech that helps businesses earn interest on idle cash through government-issued securities, has raised US$22 million in a Series A funding round led by Index Ventures.
Founded in 2023 by former French government advisers Antoine Michon and Paul-Adrien Hyppolite, Spiko enables smaller companies to extract returns from funds that would otherwise remain dormant in their bank accounts, Sifted reported.
The round also drew backing from a notable group of angel investors, including Revolut CEO Nik Storonsky, Wise CTO Harsh Sinha, and all seven co-founders of French software unicorn Pennylane.
Other participating investors include White Star Capital, Frst, Rerail, Bpifrance, and Blockwall.
Spiko’s model is built on the premise that the US has historically outperformed Europe in liquidity, how quickly assets can be converted to cash, largely due to deeper capital markets and a more unified regulatory landscape.
In contrast, Europe remains fragmented by country-specific laws and banking practices.
The startup aims to narrow that gap by making it easier for smaller businesses to earn interest on low-risk assets, such as treasury bills (T-bills), which are short-term debt securities issued by governments in the EU and the US.
Fund shares are tokenised and recorded on a blockchain ledger, allowing transfers via stablecoins. Customers can top up with digital currencies and withdraw in fiat, or the other way around.
By simplifying access to T-bills, Spiko allows smaller European firms to unlock liquidity and improve returns.
The company charges an annual management fee of 0.25% on deposited funds.
“In Europe, there’s a mistaken belief that your money won’t earn interest unless you lock it away or take on risk,”
said Hyppolite.
“But as long as central bank rates are above zero, sitting on idle cash means European businesses are missing out on returns that US competitors routinely receive.”
Featured image credit: Edited by Fintech News Switzerland, based on image by wirestock via Freepik
