Finnest.com, the corporate finance platform for established SMEs, has successfully financed its very own future growth. An international consortium led by renowned VC Maxfield Capital joins the existing shareholders (like Speedinvest) of the Vienna-based FinTech startup.
Finnest was founded by ex-banker Günther Lindenlaub and ex-eBay manager Joerg Bartussek in 2014. Finnest offers successful SMEs a new way of substituting traditional bank loans. It is licensed and active in the entire DACH-region and will expand to non-German markets soon. In a few weeks, the young company is going to open an office in Slovakia.
Joerg Bartussek, the Finnest’s co-founder and co-CEO stated in regards to the company’s new and existing investors: “Their know-how and networks will be valuable assets in our plans to launch a completely new product while expanding into further international markets. Together with our investors, we will acquire new customers on both sides, top corporates as well as loyal investors. Our new way of substituting traditional bank loans for successful enterprises works in any SME-driven market.”
Currently, Finnest.com is licensed and active in the entire DACH-region, the entry into the first non-German speaking market is planned for the first half of this year.
Alexander Turkot, the General Partner of Maxfield Capital commented: “Finnest addresses a segment which we believe has been underserved so far: mature SMEs generating an annual turnover >€10 million can now attract additional investments to boost their long-term development.”
Oliver Holle, CEO of Speedinvest, adds: “In an environment of low interest rates, Finnest provides a win-win solution for the entire ecosystem: investors looking for higher yield are offered attractive investment opportunities. And SMEs get a perfect add-on to their financing base, together with valuable marketing effects in their crowd – their customers and partners.”
Finnest.com has developed a unique combination of corporate financing and crowdinvesting. The system is derived from bookbuilding mechanisms known from corporate bonds and combines them with marketing and loyalty effects found in the crowd. Via a reverse blind auction, investors offer corporations an investment and fix the annual interest rates themselves. At the end of the bookbuilding phase, the companies select the most attractive offers with 1 click.
In comparison to other financing platforms, average transaction amounts as well as individual bids are much higher.
Finnest co-CEO Joerg Bartussek explains: “Our average basket size (individual investment) is around 7,000 Euros. And the average transaction amount will pass €1 million this year. Our model addresses a highly attractive, big and growing segment: medium-sized enterprises that have a long track record of success, that grow profitably and still lack alternatives to old-school bank loans.”