The Frankfurt FinTech CAPTIQ has successfully completed the third financing round and raised a seven-digit euro amount. The digital financing platform for chamber professionals is thus well equipped for the market launch. At the same time, CAPTIQ has started placing the first bond for the refinancing of low-volume loans.
As a result of the current financing round, the group of investors has again been expanded to include well-known business angels, especially from the German and international financial scene. Approx. 80 percent of the existing investors also took part in the capital round, the volume of which was doubled through the open participation of Hessen Kapital III (EFRE) GmbH. “We are very pleased that the innovative nature of our approach and the market perspective of our platform offer have been recognized by the investment company of the State of Hesse”, says managing director and founder Soraya Braun. The funds of the fund, 50 percent each from the budget of the State of Hesse and the European Fund for Regional Development (ERDF), are awarded to small and medium-sized companies including technology-oriented start-ups. With the conclusion of the third financing round, the total capital raised by CAPTIQ increases to over 2 million euros. The fresh funds should primarily be used for product development and team expansion.
Increased need for low-volume loans up to 250,000 euros
“We see, triggered by the Corona crisis, an increased need for small business loans and will bring our offer to the market as soon as possible in order to be able to provide acute relief to chamber professionals,” said co-founder and managing director Lorenz Beimler. CAPTIQ has developed the first alternative online financing solution that is tailored to the needs of chamber professions, the majority of which are freelancers. The loans, which are brokered via the CAPTIQ platform, address in particular financing inquiries below 250,000 euros, which under the current market conditions for commercial banks can hardly be serviced economically, can hardly be reached by development banks and thus remain undersupplied. The annual demand for financing in this segment amounts to approx. 8 billion euros,
The business model is based on a B2B approach that integrates financial advisors and banks into the sales model. “In view of the overall conditions, the interest rates offered are available much faster, even compared to development banks at a competitive level and with a credit decision within one to two working days”, says Soraya Braun.
Attractive risk-return profile for conservative long-term investors
The loans are refinanced through a bond that is currently being placed. With the bearer bond, CAPTIQ gives institutional investors access to an asset class for the first time, which is characterized by a high level of security, but which was previously not investable for this. With an investment-grade risk rating of BBB- (limited) by the ESMA-accredited rating agency Creditreform and a targeted return of around 2.60 percent pa, the CAPTIQ bond meets the requirements of risk-averse and long-term oriented investors such as depot A managers, Pension and pension funds, or insurers. “Our bond addresses a target group that is undersupplied in the current interest rate environment and is desperately looking for defensive investment opportunities with positive interest rates,” says Lorenz Beimler.
CAPTIQ operates a platform that simplifies the granting of loans to chamber professionals, e.g. for setting up a doctor’s practice, an engineering office or a law firm. The company offers financing at market conditions in the range of 10,000 to 250,000 euros. In addition to accounting legal forms (e.g. GmbHs), the non-accounting legal forms typical for chamber professions (e.g. freelancers) are also used as required. The loans are refinanced in securitized form through institutional investors such as pension funds, pension funds or Depot A-Managers. The CAPTIQ business model is based on a B2B approach that includes financial advisors and banks in sales. CAPTIQ as a case word stands for the connection between capital and IQ — thus for a new, intelligent form of financing.
More information at www.captiq.com
CAPTIQ concludes the third financing round and raised a seven-digit euro amount was originally published in FrankfurtValley on Medium, where people are continuing the conversation by highlighting and responding to this story.