Supply Finance has also struck its first partnership through a €1m investment in a Danish factoring business.
A new fintech firm named Supply Finance is seeking to disrupt the trade finance market through a growing network of partner brands.
Finch Capital and Fenway Summer Ventures were involved in the fundraise, alongside other European and American investors. Finch and Fenway each boast significant track records in the fintech space. Finch, a European and Asian fintech venture capital firm, has previously backed leading peer-to-peer lender Zopa, while Fenway is an early investor in US marketplace lender Prosper.
In tandem to closing its fundraise, Supply has also completed its first partnership: a €1m investment in a Danish factoring business named Omniveta, which is based in Copenhagen. Armed with this investment, Omniveta is gearing up for significant growth. Supply also assisted the Danish platform in the recent closing of a €7.5m credit facility, provided by London-based fund manager Advance Global Capital.
“Our capital raise will be used to fund Supply’s expansion into at least three European markets, starting with Denmark,” said Norton.
“We are excited to be working with Finch Capital and Fenway Summer, both of whom are world-class fintech investors and are behind some of Europe’s best fintech brands. We are proud to be investing in and partnering with the Omniveta team, and we are excited to bring better trade finance to Danish SMEs.”
Norton founded the business earlier this year with fellow co-founder Jay Verjee, a serial entrepreneur who has, according to a release, built three SME businesses in the last five years. The Dublin-based Supply will look to provide its partners with increased finance facilities in addition to enhanced technology.
In a release, Supply blamed post-2008 regulatory capital rules and compliance requirements for a 30 per cent shrinkage in the availability of trade finance for small businesses over the past decade. The business will seek to reverse that trend.
Radboud Vlaar, a partner at Finch Capital, commented on the fundraise: “We know the trade finance space very well having tracked it over numerous years. Supply is addressing a real need experienced by growing financing companies serving SMEs and will help them accelerate their growth. We look forward to working with the team at Supply to help build the business across Europe.”
AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.