Spring Labs, a blockchain startup that aims to decentralize the data-sharing process in the credit industry, has raised $14. 75 million in a seed funding round.

According to an announcement Tuesday, the Los Angeles and Chicago-based firm said the round was led by August Capital, with other software- and blockchain-focused capital firms also participating.

The investment will be used to continue development of the company's blockchain platform in the coming months, as well as to grow its core development team, the firm said.

Spring Labs was first set up in 2017 by the founding and board members of Avant, a personal loan platform in which August Capital also has a stake.

The firm aims to use its proprietary blockchain called Spring Network to exchange identity- and credit-related information using smart contracts in bid to bring data efficiency and regulatory transparency to the process.

Initially, the startup said it is eyeing a collaboration with Avant to test the firm's existing workflow between its personal loan platform and banking partners over the envisioned blockchain system.

Eric Carlborg, Partner at August Capital, said in the statement:

“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."

U.S. dollars image via Shutterstock