Even though we haven’t launched our pool on the TrueFi platform yet, as we highlighted in our proposal, the first use case for our initial pool will be in a levered senior position with our GigPool. We’ve recently shared an update on our activities related to the GigPool, and felt that it was appropriate to share with the TrueFi community as well.
Regarding our initial TrueFi pool and subsequent TrueFi pools, we anticipate further integration with our GigPool, in addition to the exploration of investment opportunities outside of the scope of the GigPool, so this is intended to be the first of many investment activity reports going forward, with a more detailed report being made available for investors in our pool, to be distributed directly to those investors.
For more information on the GigPool, please review our initial pool proposal here: END Capital--Portfolio Manager: Bridging TradFi Assets to DeFi
We are currently working with one asset originator with the GigPool. Willa (https://www.willapay.com/) is a fintech start-up that is working with gig economy workers, specifically creatives and social media influencers, on providing them the operational infrastructure for their work. The GigPool is helping Willa with the funding of their invoice factoring product.
GigPool Quarterly Activity Overview
Willa 006a and 006b notes had come due this quarter, and were refinanced by the Willa 007a and 007b notes. The Willa 007a and 007b notes are expected to come due in September.
END-Labs is in discussions to enter into a partnership that would potentially add another Asset Originator onto the GigPool platform. We anticipate further clarity on this partnership by mid-September.
Note Collateral Performance:
For the Willa 006a and 006b notes, the notes were cross collateralized (that is, the notes shared the same pool of invoice receivables). We see that given our 80% advance rate on the funded balances, there were enough cash flows generated from paid invoices to cover a significant portion of the note balance, but the company still had to rely on the 50% cash reserve to cover about 3+% of principal and the interest coverage.
Given Willa’s short term and medium term strategic roadmap as communicated to us by Willa’s management, we anticipate that there will eventually be less of a reliance on the cash reserve to meet principal and interest coverage; but for the time being, we will maintained the same cash reserve requirement levels for the Willa 007a and 007b notes and will continue monitoring and providing feedback on Willa’s credit underwriting approach, asset performance, and operational capacity