German startup FinCompare, a financing platform for SMEs, has successfully extended and completed its Series A financing round by an additional €12 million, bringing the total to €22 million, led by existing investors such as Speedinvest, ING Ventures and UNIQA Ventures. In addition, international financial investors, including Elevator Ventures of Raiffeisen Bank International AG, and private investors have joined the group.
FinCompare, founded in 2016, is a Berlin-based fintech startup with the vision to become Europe’s leading one-stop financing platform for SMEs. The platform provides SMEs with tailor-made financing solutions from more than 250 banks, both directly and indirectly. On the other side, it is currently used by more than 1,000 financial advisors for their daily brokerage businesses with their customers. Additionally, financing providers use the platform to offer credit solutions, as well as highly flexible financing solutions, such as leasing, factoring, and purchase financing, to a strong and growing base of more than 25,000 registered SMEs. As a result, FinCompare’s technology is able to identify the financing potential of a company in an automated manner, and then create highly dynamic financing mixes that best fit a customer’s specific needs, situation, or creditworthiness.
Created by experienced, pragmatic founders and supported by strong investors, the startup experienced a successful 2019: “We have more than doubled growth. We aim to maintain our strong growth momentum, and therefore plan to invest heavily into our team and technology. We are extremely thankful for the strong commitment shown by our current investors and to welcome new international investors to FinCompare. There was strong demand from investors to participate in the round, which was ultimately oversubscribed”, says Stephan Heller, Founder and CEO of FinCompare.
The investment will heavily support the company in furthering its matching technology, predictive scoring, and CRM systems, and paves FinCompare’s path towards continued growth. The investment will also be utilised to grow the existing team of software engineers, expanding its overall team numbers beyond 75 people. Incorporating future-oriented data analytics, the company will continue developing towards an all-in-one SME financing platform with highly personalised interactions and incorporating future-oriented data analytics.
FinCompare’s CCO, Timm Wege, said: “The banking sector is ready for a radical shift. We now have the opportunity to integrate all German SME lending products into our platform and to transform into the single largest independent relationship bank for SMEs – without having to be a bank ourselves. Our investors fully understand that the banking sector needs to be transitioned with respect to SME lending, and that FinCompare plays an integral part in that transition process. We are about to become Germany’s largest provider of all-in-one SME financing solutions, easily accessible to SMEs at any place and at any time.”
“This investment allows us to further develop our core technology, which among others uses AI to match SME customers with appropriate financing solutions. Our professional advisory service becomes efficient and scalable due to highly automated processes and lending decisions made in real time. Thereby, the whole process becomes increasingly easy and transparent to the customer”, adds Wege.