Case Study: Moonfire achieves FX predictability and better GBP/USD rates with Bound

How Moonfire Ventures tackled its management fee currency mismatch

Moonfire, a European seed-stage venture capital firm, faced a significant challenge with a currency mismatch. Their USD-denominated management fees had to cover operational expenses in GBP and EUR, leading to unpredictable conversions that complicated financial planning and budgeting. To tackle this FX exposure, they implemented the ranging strategy from vendor Bound.

By using Bound's ranging strategy, which combines limit and stop orders, Moonfire was able to protect against downside risk while capturing upside opportunities. This solution provided the predictability they needed, resulting in a captured ~10% improvement in the GBP/USD rate. This boosted their operational cash flows and allowed them to beat their operational budget, providing stabilized finances and significant time savings.

Moonfire

Nic Lowden

Head of Finance