Celo-based ReSource Finance Raises $1.7 Million to Boost Customer Acquisition

ReSource Finance, a blockchain-based protocol for mutual credit networks extending loans to web3 businesses, has raised $1.7 million from crypto funds and angel investors led by Future Perfect Ventures, NGC Ventures, and ExNetwork, as per a press release on Aug 12.

$1.7 Million from Crypto Funds and Angel Investors

Participating crypto funds included Celo-focused ecosystem fund, Flori Ventures, Davoa Capital, BlackRock Capital, and Moonwhale Ventures. 

Eran Haggiag, the founder of ClearX, and Eyal Hertzog, the co-founder of Bancor Network, are notable angel investors.

The protocol said it would use the funds to boost customer acquisition for its dApp. Additionally, it shall further enhance its reputation-based decentralized lines of credit for small-scale businesses. 

ReSource Finance is “Redefining the DeFi Mutual Credit Economy”

ReSource Finance runs on the Celo Network, taking advantage of the network’s underlying scalability and low fees to issue out loans to small businesses trustlessly. 

Through oracles and a reputation system that ranks businesses according to their creditworthiness, the protocol can trustlessly select those which businesses can readily qualify for loans. 

Scores are based on several factors, including FICO credit scores, bank statements, accounting software APIs, and marketplace reviews.

For their solutions, Xochitl Cazador of the Celo Foundation said ReSource Finance is now the leader, extending uncollateralized credit to businesses:

“ReSource is redefining the DeFi mutual credit economy. Aligned with Celo’s mission of creating the conditions of prosperity for all, ReSource is leading the way in uncollateralized credit with crypto for small businesses.”

Empowering Authentic Economy Builders

Jalak Jobanputra of the Future Perfect Ventures, the lead investor, described small businesses as authentic economy builders. 

ReSource Finance’s solution supplies them with the much-needed funds, a lifesaver for those cut out from traditional financing channels.

Using these funds, Jalak said, ReSource Finance shall complete their common goal. It is a part of their original mission of partnering with businesses to create “a more participatory, equitable and sustainable economy.”

Commenting, Jalak said:

“The ReSource team, with their unique backgrounds and skill sets, epitomizes this mission at a time when it is more important than ever to support individuals and local economies that we believe will lead the global recovery.”

In November 2020, BTCManager reported on Chorus One receiving funds from the Celo and the Interchange Foundation. The goal was to build a proof-based bridge between Celo and Cosmos networks.

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