From bankruptcy to seed round in two years: Danish fintech Likvido has raised EUR 2.5 million from BlackFin Tech to help other SMEs avoid going out of business.
Likvido was founded in 2018, less than a year after Maximillian Frimmer and Lars Holdgaard went bankrupt with their first start-up due to a cash crunch caused by inefficient invoice management.
The experience led the pair to develop an automated process for managing and collecting invoices in a faster and more user-friendly way. In the two years since, the firm has signed over 2000 SME clients, who are estimated to save 80% of the time allocated for debtor management and receive their invoice fees 20-50% faster than normal.
CEO and founder Maximilian Frimmer, says: “Our goal is to become the European market leader for the invoice-management-system category. The seed investment lets us optimize our existing process automation solution, and add a prediction engine that utilizes all transaction data to create a transaction-level credit rating. This prediction engine lets us forecast the risk and cash flow for each specific invoice. By understanding real-time transactional risk for all transactions we will long term be able to offer financing and credit insurance for SMEs."
He says the firm intends to use the seed funding to become ready for a series-A round and international expansion in twelve months.