Tradeteq, a platform which connects trade finance originators with institutional investors, has raised $6.3m (£4.86m) in a Seed fund extension round.

The investment, which was led by ADV, will be used to develop the platform, including adding new services to it.

Christoph Gugelmann, who co-founded Tradeteq in 2016, commented on the news: “We started Tradeteq with the vision to make trade finance investable and to establish trade finance as an alternative asset class. This funding is a significant milestone for Tradeteq as it will allow us to aggressively expand our sales and marketing efforts as well as broaden and expedite product development.”

Nils Behling, fellow co-founder and CFO went on to explain what the money will be used for: “This successful funding round allows us to significantly accelerate Tradeteq’s development and to secure our position as innovation leader in the digital transformation of trade finance.”

Tradeteq provides the collaborative network for investors and originators to connect, interact, and transact. Tradeteq delivers AI-powered credit analytics, reporting, investment, and operational solutions.

Tradeteq transforms trade finance assets into transparent and scalable investments by offering a collaborative network for trade finance investors. The service delivers credit analytics and reporting, to help investors understand and scale their assets.

The company states that $150m of assets have been processed through the platform.

Mike Dimelow, CIO at ADV, commented on the company’s decision to invest: “The global trade finance market is worth $12trn USD annually, which is largely managed by banks and currently isn’t an investable asset class for institutions. Tradeteq want to change all that by bringing Artificial Intelligence to the market through a marketplace platform which should open up trade finance to a more diverse set of companies than traditional credit scoring models do, expanding the market and enabling institutions to provide capital to emergent and fast growing SME/SMB’s.

“This is a huge opportunity and is a space that Tradeteq’s founding team have years of world-leading trading experience within and are ready to redefine the industry. I’m delighted we can play a small part in such a bold mission,” he added.