finmid raises €35M for embedded finance software

Berlin-based SaaS finmid has raised €35M in early-stage funding for its embedded finance solution for B2B platforms that serve small to medium businesses.

The funding has been raised from Blossom Capital, Earlybird VC and N26-founder Max Tayenthal. Finmid has also recently announced a partnership with commerce platform Wolt after emerging from stealth.

Founded in 2021 by former N26 employees, Max Schertel and Alexander Talkanitsa, finmid provides a range of capital and payment solutions that SMBs can use to scale. Its two signature products are Capital, service that gives small and medium businesses immediate access to future revenues based on their sales history and a B2B payments system which facilitates transactions.

The new funding will be used to continue expanding and onboarding customers across core European markets as well as improving the user interface.

Max Schertel, Co-Founder of finmid said:

“For hundreds of years, banks served as outposts where local businesses could get bespoke banking solutions. In the last few decades of consolidation, banking has become distant and impersonal, leaving small and medium-sized businesses behind. At finmid, we bring business financing back to where businesses are run. With just a few lines of code, finmid enables any B2B software platform to offer financing to their customers, building on existing relationships to fuel their business growth.”

Alexander Talkanitsa, Co-Founder of finmid adds:

“Traditional banking will no longer be the primary source for business financing. Banks still have the largest pool of capital but struggle to deploy it efficiently. It’s time for a new way of banking. We believe B2B software platforms are the future distribution channel for financial services due to their relationships with thousands of businesses. Moreover, these platforms have access to real-time data, enabling streamlined user interactions. By leveraging the extensive reach, data insights, and relationships these platforms maintain, alongside financial capital, we're looking at a modern way of business financing.”