Business lending startup Spotcap raises EUR31.5 million

Business lending startup Spotcap raises EUR31.5 million

Berlin-based online business lending platform Spotcap has secured EUR31.5 million in third round financing as it prepares to expand its operations globally.

The new funding was led by international private equity firm, Finstar Financial Group, with participation from previous investor Holtzbrinck Ventures. It is the company's third successful round of financing in 18 months.

Launched in September 2014, Spotcap previously raised EUR13 million from a group of investors, including incubator parent Rocket Internet, Access Industries and Holtzbrinck Ventures as well as EUR5 million in debt capital from Kreos Capital.

The company uses credit scoring technology that plugs into an applicant's accounting software and bank account and directly evaluates real-life business data to provide flexible financing to small businesses. It claims to be able to offer credit lines of up to EUR50,000 within five minutes.

Within its first year of operation, Spotcap committed EUR18 million in funding, registered 20,000 users and fielded credit inquiries amounting to EUR500 million. The company currently employs 70 people.

The firm says it will use the new funds to expand its operations globally and to finance its existing online business lending activities in Spain, the Netherlands, and Australia.

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