DeFi protocol Huma has raised $8.3 million in seed funding.

Race Capital and Distributed Global led the effort, with participation from ParaFi Capital, Circle Ventures, Folius Ventures, and Robot Ventures.

Huma, which offers income-backed lending services, plans to use the funds to develop its platform further and expand into new markets.

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The company's first product is an on-chain factoring market that enables borrowing against invoices and users' incomes. Huma's initial launch partners include Circle, Request Network, and Superfluid.

Huma's co-founders — who have experience working at Google, Meta, Lyft, Microsoft, Earnin, and OpenDoor — believe that blockchain-based financial technologies can replace the current centralized financial systems. This would make instant credit markets accessible to a much larger audience.

"Income is the most critical input in traditional lending, but there is no decentralized finance lending protocol today that understands income portfolios of businesses or people," said Edith Yeung, General Partner at Race Capital.

"Huma Finance will start with the global factoring services market, which alone was valued at $3.5 Trillion in 2022.”

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