Myos reevaluates risk assessment, raises €25 million

dan@tech.eu
E-commercin’ ain’t easy. Especially when you’re just starting off and have very little to offer as a personal guarantee (read: debt funding) when trying to find some backing. To help bridge the divide, Berlin-based fintech Myos has developed a system to employs AI to evaluate risk assessment based not on the founders, but rather, on a “product potential”. Putting their belief in this system, Fasanara Capital and Xploration Capital have led a €25 million funding round in Myos. Tomahawk.vc and new and existing investors also participated in the round. Including this raise, Myos has pocketed €47 million. Founded in early 2018, Myos aims to help new merchants progress through their startup and growth phases, an area that some traditional backers want to stay clear of, presumably weary of ever making a return on their investment. Where Myos differs from the competition is in the aforementioned AI-based calculation of risk assessment. Instead of banking on the merchants themselves, Myos monitors the price of the product(s) on offer, its sales success, and the competition on common online marketplaces. The algorithm then spits out a “product potential” score to project future sales potential and the value of the backed products. To date, Myos has distributed €30 million via over 1,000 loans to startup e-commerce merchants. “Myos offers an incredibly flexible and fair financing solution that is very beneficial to us as a young company,” commented BEMS VenturesDennis Meincke. “Thanks to the Myos loans, we were able to grow by almost 500% last year. Without them, that would not have been possible.”
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