Finmid, a Berlin-based financial infrastructure company specializing in providing tailored financing support to small and medium-sized businesses (SMBs) through B2B platforms, has emerged from stealth mode and secured €35 million in early-stage equity funding. The investment round was led by Blossom Capital, Earlybird VC, and N26-founder Max Tayenthal.
In tandem with the funding announcement, finmid has unveiled a strategic partnership with Wolt, a renowned Helsinki-based tech company renowned for its local commerce platform. This partnership underscores finmid’s commitment to expanding its reach and enhancing financing options for businesses across Europe.
Ophelia Brown, Partner at Blossom Capital, emphasized the significance of empowering SMBs with accessible financial services, stating, “You don’t need banks to offer financial services, and in many ways, they aren’t well-positioned or set up to support the next generation of small & medium businesses.”
“Lengthy approval processes, low approval rates, and high fees are some of the challenges businesses face today in dealing with their banks. Yet, offering financial services is a highly profitable business case,” Brown added.
Blossom Capital, known as Europe’s largest Series A fund, focuses on supporting founders in consumer internet, cybersecurity, developer tools, enterprise SaaS, and marketplaces. Notable investments in their portfolio include Checkout.com, Moonpay, Pigment, and Tines.
Earlybird Venture Capital, with a founding year of 1997, is dedicated to backing European tech startups and providing them with strategic support and access to international networks and capital markets. With €2 billion under management across various funds, Earlybird claims to be a prominent venture capital firm in Europe.
Founded in 2021 by Alex Talkanista and Max Schertel, Finmid aims to democratize access to capital for businesses by offering flexible financing solutions through B2B software platforms. Their innovative approach enables businesses to access funds seamlessly, without the complexities associated with traditional banking processes.
Schertel commented on Finmid’s mission, stating, “At Finmid, our mission is to help every business access the capital it needs. But our approach might surprise you.”
“Traditional banking will no longer be the primary source for business financing,” added Talkanitsa. “We believe B2B software platforms are the future distribution channel for financial services as they have relationships with thousands of businesses.”
Finmid offers two key products tailored for European SMBs:
Capital: This solution, designed for B2B software platforms, provides immediate access to future revenues based on sales history. Implemented with platforms like Wolt, it enables businesses in property and hospitality sectors to receive cash advances on their future earnings.
B2B Payments: This solution facilitates trading and provides working capital for partners like Frupro, Safi, Metycle, Romco, VonWood, Vanilla Steel, and more.
Vincent Huang, Chief Product Officer at Wolt, expressed enthusiasm about the partnership, stating, “We’re constantly looking for ways to support our merchant partners and help them succeed. Together with finmid, we’re able to provide easy and flexible access to additional financing.”
“The feedback we have received has been extremely encouraging, and we’re excited to see what kind of value we can create with the program moving forward,” added Huang.
The new funding will enable Finmid to expand its operations and onboard more customers across core European markets, while enhancing financing options and improving user experience on their platform.