Stockholm-based fintech company Invoier, which has built and established a marketplace for fair and transparent trading of invoices, has secured a €4.1 million equity funding by EU’s innovation organization, the European Innovation Council (EIC) Fund.
According to the startup, European SMEs are forced to pay up to 60% for working capital, which is negatively impacting the possibility for growth and their competitiveness. This is what Invoier has set out to change by providing a marketplace where SMEs convert invoices into working capital.
Founded in 2018, the marketplace is built on a unique AI-based risk assessment method, making it possible for professional investors to enter a new asset class and bid in real time. Their aim is to change behaviour and challenge the €3,000 billion factoring market by creating a fair and transparent marketplace through technological innovation.
Stéphane Ouaki, Head of the European Innovation Council (EIC) department and Chair of the Investment Committee of the EIC Fund, said: “I am glad to announce the EIC Fund support to this disruptive company aiming at creating new strategies to improve SMEs competitiveness. Thanks to a cutting-edge tool, Invoier enables a more focused and accurate risk assessment.”
The parties will jointly address the European market and successively continue the expansion towards a fair and transparent global factoring spot market, based on advanced risk prediction. The ambition is to empower European SMEs, making them more competitive, improving their possibilities to grow and in turn providing new job opportunities.
“Small and medium-sized enterprises are the core of the European economy, constituting more than 25 million companies and accounting for over two-thirds of the workforce. Making sure these companies have fair opportunities affects millions of people and we are more than pleased to have the opportunity to contribute in this way”, said Fredrik Mistander, CEO and Co-founder, Invoier.