Germany-based small business finance provider FinCompare increased its series A round from €10m to €22m ($24.9m) yesterday, with financial services firm ING and insurance provider Uniqa co-leading the second tranche.
The second close was also co-led by venture capital fund Speedinvest and it included financial services firm Raiffeisen Bank International’s RBI Ventures subsidiary in addition to unnamed private investors. ING and Uniqa invested through ING Ventures and Uniqa Ventures.
FinCompare offers small and medium-sized businesses bespoke financing products covering areas like leasing, factoring and purchase financing, on behalf of a network of some 250 banking partners.
The company utilises artificial intelligence technology to assess the creditworthiness of potential borrowers and will use the series A proceeds to improve its customer relationship management systems, predictive scoring and lender-matching technology.
Uniqa Ventures and Speedinvest joined undisclosed angel investors to supply $3.8m in seed capital for FinCompare in 2017, the year the platform was launched, before returning for the first tranche of the series A round alongside ING Ventures in mid-2018.
Stephan Heller, FinCompare’s founder and CEO, said: “The successful closing of an extended series A is the result of a highly successful year 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.”
