Stockholm-based fintech company Invoier was founded with the ambition to simplify financial services & create a transparent marketplace for invoice trading. The company is funded by the EU and the Royal Institute of Technology (KTH) and has received funding from the European Union’s research and innovation program Horizon 2020.
Invoier raises fresh capital
In a recent development, Invoier announced that it has raised €4.1M in a fresh round of funding by the EU’s innovation organisation, the European Innovation Council (EIC) Fund.
The investment follows the company’s addition to the grant funding – Invoier was previously funded by the EIC Accelerator programme as one of 8 Swedish companies selected for blended finance.
EIC Fund investments are preceded by a rigorous evaluation by external experts, a due diligence process overseen by the EIC Fund Investment Committee, and a final decision by the EIC Fund Board of Directors.
Affordable invoice financing for businesses
Currently, European SMEs are forced to pay up to 60 per cent for working capital, as mentioned by Invoier, which impacts their business growth and their competitiveness. Invoice financing is a way for businesses to borrow money against the amounts due from customers. It helps businesses improve cash flow, pay employees and suppliers, and reinvest in operations and growth without waiting to get paid by their customers.
Founded in 2018 by Fredrik Mistander, Anders Råge and Fredrik Severin, Invoier wants to make this process easy. It provides a marketplace where small-and medium-sized (SMEs) companies can convert invoices into working capital. The marketplace is built on an AI-based risk assessment method, making it possible for professional investors to enter a new asset class and bid in real time.
Fredrik Mistander, CEO and co-founder of Invoier, says, “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.”
The company believes it can better the conditions for financing and growth of SMEs, and open up the market for a new asset class for investors. Invoier operates with permission from the Swedish Financial Supervisory Authority and the Swedish Integrity Protection Authority.
The proceeds from this round will help Invoier address the European market as well as continue its expansion towards a fair and transparent global factoring spot market, based on advanced risk prediction.
About EIC Fund
Established in June 2020, the European Innovation Council Fund (EIC Fund) is an initiative of the European Commission to make direct equity and quasi-equity investments (between €500K and €15M) in European high impact and deep tech startups and scale-ups.
The EIC Fund provides long-term capital and invests in companies from any sector, across all EU countries and countries associated with Horizon 2020. It aims to fill a critical financing gap. The firm’s main purpose is not to maximise financial investment returns but to have a high impact by accompanying companies with disruptive technologies in their growth.
The Fund’s objective is to crowd in market players, further sharing risks by building a large network of capital providers and strategic partners suitable for co-investments and follow-on funding.
The Fund also pays particular attention to empowering and supporting female founders as well as contributing to reducing the innovation divide among EU countries.