GenTwo wants to Democratize Securitization

Originally published in French in Agefi on 26 July 2024.

Read the full Article (in French)  

Key Takeaways:

Company Background and Achievements:

GenTwo, a Zurich-based fintech, has established a strong presence in creating financial products and is now looking to expand internationally.

The company was named "Fintech of the Year" in the growth category in June, partly due to its GenTwo Pro platform, which allows the creation of an unlimited number of products backed by fiduciary or digital assets.

Business Model and Innovation:

GenTwo addresses the challenge financial intermediaries face in needing a bank to create structured products by offering a platform that removes this requirement.

The company aims to bridge the gap between custom products and those offered by major financial players, promoting the democratization of securitization.

Client Base and Financials:

Founded in 2018, GenTwo has around 300 financial intermediary clients who have launched over 1400 products, with about 1000 active on the platform, totaling approximately $3.9 billion in value.

The company aims for a revenue of $20 million this year and primarily serves clients in Switzerland but is now targeting international expansion, particularly in London and the US.

Future Plans and IPO Stance:

GenTwo is not actively seeking additional capital at the moment but raised $15 million in a Series A round last year.

The company does not plan for an IPO in the near future, believing it is too young for such a move and noting that premature IPOs can be detrimental.