Charlotte-based fintech startup Collateral Velocity has raised a new round of funding that it will use to help expand its platform.
The startup announced on Monday that it recently raised a $1.3 million friends and family funding round.
Collateral Velocity, founded in 2018 by Chris Langley, is a business-to-business SaaS platform that offers real-time medical claim valuation and collateralization as part of a committed, secured debt and trade finance solution suite. The overarching goal of the platform is to reduce risk and lower costs in health care.
Nat Clarkson, Collateral Velocity board member, said the new money will be used to expand the platform's capabilities and will allow the company to launch a new pilot program with a top 10-ranked bank and potentially with a leading asset management company in the U.S.
"They're going to take that product live and prove that it works," he said. "In the next few months, they'll launch that product."
The platform, Clarkson said, performs two main tasks. It generates liquidity faster and more efficiently by creating a new asset class, and it helps to mitigate risk as capitation becomes a larger piece of the health-care financial domain.
"Collateral Velocity created a new security that helps provide liquidity to health-care providers and is doing it on a blockchain system, which allows it to happen with great transparency, trackability and speed," Clakrson said.
Langley, who previously worked with top-tier banks in Charlotte, began developing the platform several years ago after realizing people could post collateral to banks to receive lower rates. He quickly decided to pivot to health-care receivables, particularly Medicaid and Medicare.
The startup has also partnered with PMMC, a Charlotte-based company that uses revenue-cycle management software to improve the financial performance of health-care providers.
Collateral Velocity is a portfolio company of Carolina Fintech Ventures and was part of RevTech Labs Class 9 cohort.
