#USA #Santa Monica #Venture Capital #Silicon Valley Bank #Turbine Finance

Turbine Finance: Unlocking Liquidity for Investors

In a significant move for private equity and venture capital spaces, Turbine Finance Corp. has raised over $121 million, revolutionizing access to liquidity for investors. This innovative financial platform, driven by data science, specializes in providing credit facilities to venture investors, responding to a critical need within the traditional funding ecosystem.

Funding Highlights

On April 4, 2025, Turbine announced the successful completion of a $13 million Series A funding round, co-led by notable venture firms Alpha Edison and TTV Capital, alongside investments from Fin Capital, B Capital, and Sozo Ventures. This funding adds to the previously undisclosed $8.75 million raised in seed funding, bringing the overall amount raised to an impressive $21.75 million. Moreover, Turbine secured a $100 million warehouse facility from Silicon Valley Bank (SVB), a division of First Citizens Bank, which will allow general partners and limited partners to borrow against their existing fund investments. This significantly increases the liquidity options available, addressing the issue of tied-up capital that has often plagued the sector.

The Rationale Behind Turbine's Creation

According to Mike Hurst, the Founder and CEO of Turbine, private equity, venture, and real estate funds collectively manage assets exceeding $13 trillion. A substantial portion of this capital remains illiquid, limiting investment opportunities. Hurst emphasizes that, while returns in venture and private equity are typically among the highest asset classes, liquidity remains limited and unpredictable. Turbine aims to grant investors greater flexibility, enabling them to unlock capital as needed, thereby fostering increased investment in high-performing funds.

How Turbine Works

Turbine's platform allows private equity and venture firms to provide limited partners (LPs) with direct access to the monetary value of their portfolio investments without necessitating a reduction in their positions. LPs can leverage these investments to make new commitments, address capital calls, or fund new venture opportunities. This innovative approach ensures that liquidity does not come at the cost of potential investment returns.

Additionally, Turbine's machine learning-based underwriting platform speeds up traditional funding processes, significantly reducing the time taken to evaluate fund performance and monetary value from months to mere days. Such technological advancements not only streamline operations but also enhance decision-making capabilities for fund managers.

Impact on the Industry

With Turbine's innovative solutions, investors can finally mitigate the trade-off between potential high returns and liquidity. Nate Redmond, Managing Partner at Alpha Edison, articulates confidence in Turbine's potential to redefine the landscape for private assets, noting that the platform equips investors with leverage and liquidity tools analogous to those in public markets.

The team's combined expertise in financial services and prior experience at institutions like Silicon Valley Bank positions Turbine to capitalize on the evolving needs of the venture ecosystem. The focus remains on onboarding experienced funds with strong track records, ensuring that the partnerships developed drive mutual growth.

Looking Ahead

As Turbine continues to implement its robust platform, the infusion of equity capital aims to expedite the full deployment of its warehouse line while expanding the data science team. This strategic growth is expected to yield unique insights, making it easier for the venture capital ecosystem to navigate liquidity challenges.

In light of the challenges facing venture capital firms, Turbine emerges as a beacon of innovation, set to transform the industry. For venture firms interested in leveraging this groundbreaking platform, more information is available at www.turbine.co. Turbine Finance Corp. is proudly based in Santa Monica, California, dedicated to unlocking the $13 trillion in capital presently ensnared in illiquid positions globally.

Media Contact: Jennifer Zimmerman, [email protected]