Finom, a Dutch start-up specialising in banking services for small and medium-sized enterprises (SMEs), has secured a €92.3 million ($105 million) growth investment from long-time backer General Catalyst, made through the US-based venture capital firm’s Customer Value Fund (CVF).
General Catalyst previously joined Northzone in leading Finom’s €50 million Series B last year, with this latest capital injection bringing the fintech’s total funding to approximately €190 million.
In a LinkedIn statement announcing the raise, Finom says: “Unlike traditional funding rounds tied to equity, this growth investment from General Catalyst’s CVF is a new model of financing.”
The company explains that this non-traditional model means the investment “funds the majority of our sales and marketing expenses” and repayment “comes only from revenues generated by customers acquired with this investment”. Finom says that this means payment timing “is perfectly matched to our actual customer cash flows”.
The company adds that current shareholders, which include Cogito Capital, Entrée Capital, FJLabs, s16vc and Target Global, will also “maintain their equity positions without dilution”.
Founded in 2020 and based in Amsterdam, Finom operates a digital financial services platform for entrepreneurs and SMEs in Germany, France, Spain, the Netherlands and Italy.
Source: https://www.fintechfutures.com/
