London-based TRIVER, a fintech startup that provides small businesses with instant capital, announced that it has secured a further £20M (approximately €22.90M) in funding from Luxembourg’s Avellinia Capital.
“Credit provided by banks is slow to be approved and typically costs between 2 per cent and 4 per cent for a 30-day term versus 1.8 per cent offered by TRIVER. There is enormous potential,” adds Pfundstein.
Prior to this round, TRIVER raised £7M (then, nearly €7.95M) in a fresh round led by Stride VC, Andreessen Horowitz, Axeleo Capital, Motive Partners and Sequoia Capital, among others.
Since then, the company has launched its prototype in May and a commercial proposition in August, engaging paying customers. It has also facilitated over £1M in advanced invoices, with an average invoice size of £12,000 and an average funding duration of 30 days.
With this new debt facility, TRIVER plans to offer more than £200M (approximately €229M) in funding annually, contributing to the support of SMEs in the UK. The funding will also be used to advance TRIVER’s product development initiatives.
TRIVER Founder Jerome Le Luel says, “In the current economic climate, we see significant demand from SMEs to access short-term cash flow financing as payment terms extend and banks tighten access to credit.”
“Thanks to continuous access to Open Banking data, we are confident we can manage the credit risk of our customers over the short horizon of their invoices.”
Providing small businesses with instant capital
Founded in 2023 by Jerome Le Luel, TRIVER utilises Open Banking data and advanced AI to underwrite and fund short-term working capital for small businesses.
The fintech can provide instant advances on client invoices, ensuring simple access to capital 24/7 for SMEs. The company says it is quicker and easier than high street banks.
Founder Jerome Le Luel says, “The vast majority of SMEs we interact with are willing to grant us access to their bank data via Open Banking. They’re familiar with this tool because it is commonly used with their accounting software.”
“They see the benefit of a simpler process than manually providing bank statements and other data. Nor do they have to make personal guarantees when applying to us.”
With TRIVER, small businesses are facilitated within 3 hours of application, with invoices funded in 2.5 minutes. The company’s future plan is to streamline the process to under 10 minutes for facility setup and less than 1 minute for advancing invoices.
Traditional banks take up to 4 weeks for facility setup and 24 hours for invoice advances due to manual processes.
Embedded within digital service providers
TRIVER is crafted to integrate seamlessly into digital service providers catering to SMEs, offering automated processes for easy provision of short-term working capital solutions.
In return, these providers receive a value-share when their customers utilise TRIVER’s services.
Since its launch, the UK-based fintech company has already secured 11 distribution partners, encompassing commercial brokers and lending platforms such as Funding Options by Tide, Newable, Swoop, Clear Business Finance, and Capitalise.
Currently, TRIVER is actively engaged in discussions with potential partners in various sectors, including banks, accounting software, insurance, utilities, and foreign exchange. The fintech startup aims to forge additional partnerships in the upcoming months.