Czech fintech Flowpay announced that it has closed its latest €2.1 million seed funding round. The investors of the round are Techstars, Soulmates Ventures, DEPO Ventures, as well as business angels.
- Founded in 2021 by Daniel Hastik and William Jalloul, Flowpay provides quick funding for small and medium-sized businesses with a personalized loan to fit their needs. With artificial intelligence, the startup automats every step from funding application to risk scoring and application approval. According to startup, its solution makes the online process 10 times faster than a bank with no paperwork needed.
- Flowpay is headquartered in Prague, with a team of 15 IT and Data Science experts. Their clients include, with Touchpad, Shoptet Boost, Shopify, Storyous, Magento, Inventor, Google Analytics, Dropshipping.cz, and more.
Details of the deal
- The round was led by Techstars, an active pre-seed investor assisting startups with funding, mentoring, getting customers, hiring process, and choosing the right infrastructure. Other investors were Prague-based, Soulmates Ventures and DEPO Ventures which manages angel funds and a global angel investor network.
- Business angels such as Mark Ransford, Martin Herrmann, Kartik Varma, and Allard Luchsinger also participated in the round of funding.
“SMEs are the backbone of our economy. To be successful, they need financing to fund their growth. Most banks are not well set up to support them effectively, as processing relatively small loans is costly, and assessing risk based on outdated data poses a significant challenge for them. Because of these dynamics, many traditional lenders choose to focus on higher-value loans for larger companies, leaving the SME segment poorly served and economies performing sub-optimally. Flowpay is a prime example of a new generation of tech-driven companies that enable fast and cost-effective funding of smaller loans for the SME segment,” Allard Luchsinger, Managing Director Techstars, said.
- With the funds raised, Flowplay will expand internationally, extend its services to a wider array of SMEs, increase its team, and develop its platform.
