NoviCap, the invoice trading marketplace, has announced a $1.7M Series Seed. The company, which launched in 2014, allows small and medium companies to access financing by selling their outstanding invoices to professional investors who can access a new asset class with double-digit returns.
Investors can access a new asset class
Focussing on SMEs with blue-chip debtors, NoviCap boasts double-digit returns for investors while maintaining a 0% default rate on all transactions. On NoviCap’s investment side, family offices, high-net-worth and corporate investors, can enjoy fully automated trading and diversify their portfolio by buying parts of multiple invoices.
Fast and transparent alternative to finance SMEs
NoviCap sets out to provide a faster, more flexible, and transparent way to finance companies. Small and medium companies can apply online and start discounting their invoices in less than 48h. Once registered, companies upload invoices which can be sold to a pool of professional investors instantaneously.
Aimed at solving the issue of long payment terms (60-90 days)
Federico Travella, CEO and co-founder of NoviCap explains “Extended payment terms can have far-reaching consequences for SMEs and the rapid growth of our business validates market demand for an innovative financing solution” He added that the new firepower will solidify NoviCap’s position as the leading online invoice finance platform in Southern Europe.
David Cohen, Managing Partner at Techstars Ventures said: “During the Barclays FinTech Accelerator powered by Techstars, NoviCap impressed everyone with their innovative financing marketplace, as well as the high calibre and determination of the founders.” He added, “We strongly believe in the value of the platform and are excited to see the NoviCap story unfold.”
Romain Lavault, General Partner at Partech Ventures, said: “The invoice trading market has a promising future and NoviCap has all the cards in place to succeed. We believe in the ambitious team and the strong vision of the firm.”
The funding round closed earlier this year and includes the participation of global private equity firm ACE & Co and San Francisco-based Tekton Ventures.
NoviCap is headquartered in London and has a client base of mainly Spanish companies which are affected by the longest payment terms in Europe. As demand for alternative finance grows, NoviCap continues to expand its customer base, achieving a 90% client retention rate.