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Fintech and Venture Debt

Methods for tech lending are increasing as Europe’s mature startup economy is growing and founders are finding diverse ways to raise capital. As this continues to grow, the future of tech lending will require new and data-driven decisions.

A new report by GP Bullhound powered by Dealroom data explores possibilities for alternative financing sources and showcases expert views from founders and investors from companies like Lendis, SumUp, Stratio, Verdane, Adara Ventures, HV Capital, One Peak, Capchase, and Amentum.

Some key findings from the report:

• 2021 was a breakout year, in which the debt market more than doubled year-on-year and grew impressively, just shy of 4.0x since 2016.
• With 50% of European debt funding rounds involving late-stage businesses, Europe’s mid-market tech companies remain underserved.
• Lending is becoming more data-driven and founder-friendly. Also, non-bank lenders are now dominating the market with offerings ranging from ARR lending to asset-based lending & venture debt and growth capital.

• Looking to the future: with rising inflation rates, geopolitical volatility and the end of low-interest-rate policies, there will be a greater need for alternative financing sources. For tech companies being built in Europe, debt will become an increasingly attractive option, and we expect the market to grow and mature.

For a more in-depth guide on European tech lending download the whole GP Bullhound report by clicking the button below. 👇

In other news

📉 Klarna valuation falls - Klarna is looking for an extra $1B funding at a $30B valuation, 1/3rd less than its last round - WSJ

😨 Paytm sell for pennies - Jack Ma-led Alibaba and Ant Financials have sold their 43.32% stake in Paytm E-commerce back to the company for just $5.6M. In its last round of funding in 2020, the company was valued at $3B.  - Your Story

⚽ Insurtech and soccer - Wefox, the biggest tech insurtech, is the first-ever back of shirt sponsor of AC Milan, which just won the Italian Series A. Crazy to look at how much crypto, fintech and insurtechs are getting into sports sponsorships - AC Milan

👀 Crypto exchanges are eating up neobrokers- FTX US is launching zero-commission stock trading. - CBNC

Latest fintech deals

The largest this week:

🇺🇸 Block rival SpotOn raised $300M at a $3.6B valuation after doubling ARR last year.

Since its 2017 inception, SpotOn has been focused on providing software and payments technology to SMBs with an emphasis on restaurants and retail businesses.

🇮🇩 Digital payments platform Xendit raised $300M in a Series D funding round led by Coatue and Insight Partners. Xendit said its annualized transactions tripled from 65M to 200M over the last year. The total value of the transactions also jumped from $6.5B to $15B. Some of its clients are Traveloka, Transferwise, and Grab.

🇬🇧 Cloud-native core banking provider Thought Machine has raised a $160M Series D doubling its valuation to $2.7B. The new financing has been led by Temasek, the global investment company headquartered in Singapore, with participation from banks Intesa Sanpaolo and Morgan Stanley. Existing investors such as Eurazeo, ING, JPMorgan Chase, Lloyds Banking Group, and SEB also participated in the round.

🦄 Car payments fintech Caribou raised a $115M Series C at a $1.1B valuation. Caribou partners with lenders to bring customers lower rates and smaller monthly payments, saving customers an average of over $100 per month by refinancing car loans.

Other notable fintech deals from around the globe:

🇸🇪 Climate tech startup Doconomy has received a strategic investment from ABN AMRO Ventures to accelerate its goal to help one billion people each cut one tonne of carbon emissions per year by engaging the bank's clients.

An overview of ClimateTech software for banks and fintech.

🇦🇪 Dubai-based Pemo raised $12M in seed funding to simplify Corporate Spend management in MENAP.

An overview of Corporate Spend management.

🇸🇪 B2B buy now, pay later (BNPL) company Treyd has raised $10.5M in a Series A funding round led by Nineyards Equity to expand into the UK. Treyd provides BNPL services for international supply chains.

Discover 190+ BNPL startups.

Read up on all the latest fintech deals in Dealroom.co

Tip of the week

👀 The best investors in EMEA

At Dealroom.co we are excited to share the 2022 edition of the EMEA VC Investor Prominence Rank.

The ranking is a tool for founders to navigate the vast, and at times opaque venture market, for each stage of their growth. The ranking is top notch and data-driven compiled entirely from Dealroom’s objective universe of data. More on the methodology here.

Explore the investor ranking today. 👈

Job opportunities

🇪🇸 Capchase, a provider of revenue-based financing is hiring for a Talent Acquisition Associate and other 9 roles.

🇨🇱 Xepelin, a provider of supply chain and trade financing is hiring for Database Administrator and other 31 roles.

 🇳🇱 At Dealroom.co we are hiring a Sr. AI Engineering and 9 other roles.

Discover 75,000+ job openings at fintech startups (login for full results)

Dive in

💰 The corporate expense management war

🔎 Fintech Q1 Report

🌳 ClimateTech Software for Banks and Fintechs

Lorenzo Chiavarini

Innovation Analyst
Dealroom

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