Second round: S‑UBG Group invests in FinTech entrafin
Cologne/Aachen — The S‑UBG Group is participating with its venture capital fund (S‑VC GmbH) in the second round of financing in the FinTech company entrafin GmbH, which was founded in 2015. Also investing are the founders and managing directors of zeb, a management consultancy specializing in financial service providers, Prof. Dr. Stefan Kirmße, Prof. Dr. Bernd Rolfes and Dr. Patrick Tegeder, the existing investors Dieter von Holtzbrinck Ventures and the founders and managing directors of entrafin. “We will use the fresh capital to grow further. Our goal is to give significantly more customers access to our innovative form of purchase financing. To this end, we are continuously developing our trading platform as well as our sales channels,” says Christoph Bauer (photo, left of co-founder and managing director Dr. Stefan Fenner), Founder and Managing Director of entrafin GmbH.
FinTech made in NRW: Innovative model for liquidity optimization entrafin has developed a completely digital platform for purchase financing, where suppliers are paid in full directly after delivery and buyers can take advantage of a flexible payment term of up to 120 days for themselves. This creates attractive liquidity scope for the companies. In this way, entrafin meets the growing need of SMEs to be able to use financing in an uncomplicated, fast, and flexible manner precisely where it is needed at short notice: at the trading business itself with its goods and services. “Through future further developments, we will likewise be able to offer our customers a quick and easy connection of their eCommerce solutions to our retail platform. In this way, we will also consistently serve the financing needs directly and digitally at the point of sale,” explains Bauer.
Medium-sized company financing in transition
“With its purchase financing model and its innovative, digital initiation and processing, entrafin GmbH is meeting with high demand in the market,” says Harald Heidemann, CEO of S‑UBG. “The financing of medium-sized companies in Germany is undergoing change, and entrepreneurs are increasingly looking for alternatives to traditional bank loans. There is therefore similar market potential for purchase financing as there is for the already established factoring. The total volume of the German factoring industry alone currently amounts to around 217 billion euros a year and has shown an average year-on-year increase of more than eight percent over the last four years,” Heidemann continues.
The next milestones for entrafin are therefore clear: a significant expansion of sales in the existing sales channels and the digital development of new market segments through the further development of the trading platform.
About S‑UBG Group:
The S‑UBG Group, Aachen, is the leading partner in providing equity capital for established medium-sized companies (S‑UBG AG) and young, technology-oriented start-ups (S‑VC GmbH) in the economic regions of Aachen, Krefeld and Mönchengladbach. S‑UBG AG invests in growth sectors; high quality of corporate management is a key investment criterion for the investment company. In 1997, the shareholder savings banks established an early-stage fund under S‑VC GmbH to finance startups. In 2007, the Seed Fonds I Aachen was added, expanding the range to include equity capital for technology-oriented start-ups. After it was fully financed, a new fund (Seed Fonds II Aachen) was set up in 2012. The third seed fund generation will start at the beginning of 2018. The S‑UBG Group currently has investments in over 40 companies in the region and manages approximately €100 million. Further information: www.s‑ubg.de
About FinTech Funds:
Dieter von Holtzbrinck Ventures (DvH Ventures) is one of the leading early-stage investors in Europe and invests in technology-oriented startups that develop disruptive products and services — from FinTech, InsurTech and Big Data to arts and culture, from education and training to mobile advertising. As an independent venture capital fund, DvH Ventures invests with capital, management support as well as the charisma of strong brands and large reach of the journalistic heavyweights Handelsblatt, WirtschaftsWoche, Tagesspiegel and DIE ZEIT. The management is formed by Peter Richarz and Fabian von Trotha. For more information, visit: www.dvhventures.de
entrafin is a FinTech for purchase financing specialized in SMEs. entrafin offers its B2B customers a digital financing alternative for their working capital that is faster, easier, and usually cheaper than the house bank. Customers can initiate and settle trading transactions with their suppliers in real time via the entrafin digital trading platform — entrafin pays the suppliers’ invoice immediately after delivery and grants the customer a payment term of up to 120 days. The traded goods serve as collateral. Further information: www.entrafin.de