The EU’s European Innovation Council Fund has invested 4.1 million euros (approximately $4.8 million) in Stockholm-based FinTech provider Invoier to help bolster the European small to medium-sized business (SMB) community, Invoier announced on its website Wednesday (Aug. 18).
Since its founding in 2018, Invoier has worked to offer better financing and growth opportunities for SMBs. With its latest investment, the company intends to help businesses transform invoices into working capital, in essence obtaining peer-to-peer financing for yet-to-be-paid business expenses or purchases.
With the latest funding drive, Invoier said it intends to level the playing field for smaller business enterprises who reportedly must spend upwards of 60 percent for working capital. At that rate, companies’ likelihoods for expansion and having an edge over competitors dramatically diminishes, according to Invoier. In response to the challenges, Invoier’s Artificial Intelligence-powered marketplace determines risks for each transaction and enables investors to submit bids in real time.
“Invoier enables a more focused and accurate risk assessment,” said Stéphane Ouaki, head of the European Innovation Council (EIC) department and chair of the Investment Committee of the EIC Fund, calling Invoier a “disruptive company.” Of utmost importance is enabling better competition and equal opportunities for growth among the 25 million small to medium-sized European businesses, Fredrik Mistander, Invoier CEO and co-founder said.
Invoier, which previously received a grant from the EIC to further its business lending efforts, is not the only company investing in the success of SMBs. As PYMNTS reported earlier this month, 10-year-old U.K.-based equity and debt funding company Praetura Group has launched a new financial division to assist SMBs in obtaining flexible financing. Particularly as businesses struggle to bounce back post-pandemic, companies such as Invoier and Praetura Group are devising ways for businesses to access flexible borrowing, including invoice financing for unpaid bills.
Read more: Praetura To Help SMBs With Flexible Finance