FinTech: Israeli Fintech Liquidity Group Turns Unicorn After $40M Investment By MUFG

Liquidity Group raised the amount from MUFG at a valuation of $1.4 billion.
Israeli-founded fintech company Liquidity Group has raised $40 million from Japanese banking giant MUFG Bank (NYSE: MUFG), valuing the company at $1.4 billion and pushing it into unicorn status.
The Tel Aviv-based company, founded in 2018, provides unlimited unsecured, non-recourse, no-dilution growth capital, and has seen its valuation rise by 75% in less than a year. The latest funding round brings Liquidity’s total equity fundraising to $120 million. (CTECH, The Calcalist)
MUFG owns 12.5% of Liquidity’s shares (fully diluted), with Meitav Dash, MUFG, and Spark all partners in the company. Meitav investment house, which invested in Liquidity in 2018, will see its holdings fall to 33.3% but will remain the largest shareholder in the company.
The company is targeting an IPO on Nasdaq or the Tokyo Stock Exchange at the end of 2024. Liquidity invests, syndicates, and automates growth and middle-market lending for businesses around the world, providing capital mainly to later-stage technology companies.
It provides loans through six funds it manages, with its headquarters located in Israel, and has offices in other countries, including a development center in Abu Dhabi.
Liquidity Group was founded by Ron Daniel, who also serves as the CEO.
The credit-oriented fintech is said to forecast the business situation of the borrowing company with exceptional accuracy.
“Thanks to our technology, I know how to lend to companies according to the value of activity, and not according to the value of assets, which is the method the banks use,” says Daniel. “Our systems predict the value of the business activity two years forward and at 94% accuracy. That’s why we have almost never had a company default.”
According to Daniel, the company is growing at the rate of 500% per year.
Related Story: Visa, Froda, And Lunar Tie-Up For Global SME Lending Solution
Image credit: Liquidity Group

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