Berlin-based startup Finiata, which gives flexible credit lines to small businesses, has raised 7 million in a follow-on funding round from most existing investors. The European Investment Fund is also participating through the Corona Matching Facility.

Finiata’s machine learning algorithm ‘Copernicus’ determines the creditworthiness of potential borrowers within a few minutes and – assuming a positive score – provides them with ‘FlexKapital’, a credit line of three to eight percent of their annual sales.

The startup’s focus is on small, cross-industry companies with up to €10 million in annual sales and up to 50 employees, including freelancers and self-employed people. Finiata says that means over 90 percent of European businesses fall in its target group.

That said, the tech company is currently only active in Germany and Poland. This new funding will help the team prepare its platform for international expansion. Finiata is also developing ways to market Copernicus as a financial scoring service for banks and other players in the credit business.

Founded in 2016, the German startup previously raised three rounds of funding in 2017: a €10 million Series A, an €8 million round of debt financing and a €5 million seed round. Investors over time include Point Nine Capital, Redalpine, DN Capital, La Famiglia, Fly Ventures, Manta Ray Ventures and others.

Photo by Raimar von Wienskowski: Ingmar Stupp, Christoph Nicola and Jan Enno Einfeld

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