Spring Labs Secures $15 million for Decentralized Credit Data Blockchain

Blockchain startup Spring Labs has become the latest blockchain company to secure significant funding from investors, following a successful seed funding round that raised around $15 million.

The firm, which is developing technology to facilitate decentralized data-sharing for the credit industry on the blockchain, saw a number of other tech firms contributing to the round, which was led by August Capital.

The investment comes at a crucial time for the firm in the development of its technology, which some have suggested could deliver significant business process improvements and efficiency gains for companies within the credit sector.

The investment will initially allow them to expand their development team, as well as providing the funding to continue with the development of their decentralized blockchain platform.

Their development focus centers on a proprietary blockchain known as Spring Network, which works with smart contracts to automate a number of key data handling and processing issues in the credit industry.

First established in 2017, the firm was the brainchild of board members at personal loans company Avant, which is also partially owned by August Capital.

According to the firm, the initial trials of the technology will be conducted in partnership with Avant, which will test how the technology relates to existing workflows and channels of data-sharing between banking partners.

Eric Carlborg, a partner at August Capital, said the Spring Network project provides a chance for a significantly improved credit infrastructure in future, reliant on blockchain technology.

“We see a huge opportunity here to improve the infrastructure of the global credit ecosystem in a more decentralized and secure way, with the right incentives in place to drive participation and information-sharing.”

The financial services sectors have been at the forefront of development activity for the blockchain to date, with some of the most significant blockchain developments supported by or developed in collaboration with major financial institutions.

Technologies like Spring Network are aimed at reducing friction in financial and payment systems through the decentralized structure of the blockchain, and with the help of smart contracts and apps to automate processes.

With the new funding in place, all eyes will now turn to the Spring Labs technology, as it prepares to roll out its initial release.