Finom Raises €50M in Series B Funding Led by General Catalyst and Northzone

With notable portfolio investments in Airbnb, Hubspot, Canva, Kayak, and Stripe, General Catalyst has been a resolute supporter of Finom since its seed stage. As a new partner, Northzone, which has invested in popular companies such as Spotify, Klarna, Personio, and Trustpilot, joined in this financing round. Cogito Capital, Entrée Capital, FJLabs, s16vc, and Target Global, firms that were already investors, also participated in the round.

These funds represent a substantial capital injection, and they came to Finom following the successful demonstration of our pan-European business model in 2022-23. With this money, we are now strategically executing our growth to improve our product offerings to help shape the future of financial services for small and medium-sized businesses in Europe.

Our Major Investment Targets

• Our product, Finom, is something we never stop working on. The web and mobile versions are getting faster and better, and further accounting integration and new features will address the growing demands of SMEs.
• We will support the acquisition of advanced security certifications and continually enhance our digital money-handling platform with a unique financial crime prevention system, which is innovative in the neobanking sphere.
• We will pursue further marketing activities and tactical implementations, with a strategic priority on expanding our reach and building our audience.

Our Goals

This financing has led us to an important stage in our development. It gives us the freedom to broaden our services to a larger segment of SMEs and strengthen our leadership role as a pan-European business finance management platform.

Finom's Innovative Financial Solutions for Europe's SMEs

Europe has more than 24 million SMEs that make up an estimated €4.15 trillion of its total GDP. From day one, Finom has been a pivotal financial partner for over 85,000 European SMEs, freelancers, and corporates. It has revolutionized business operations and facilitated money transfers, invoicing, teamwork, and accounting automation.

Finom's Vision 2024: Focus on Poland & the Entire EEA

As we tackle the challenges of 2024, we plan to reinforce our presence in current markets, with particular attention paid to Poland. Local IBANs, integrations, and tailored services will finely hone our offerings, leading to the expansion across all markets within the European Economic Area by 2025. Further, Finom will remain in line with the growth trend, attending to a need for a wider range of services designed for larger SMEs.

Finom's Funding Journey: From the Seed Round to Series A

Formerly, as a start-up, we got a Seed Round of €6.5 million from Target Global with participation from General Catalyst in 2020. Among the investors were FJLabs, Tamaz Georgadze, Frank Freund, and Michael Stephan (co-founders of Raisin), along with Ilya Kondrashov (founder of MarketFinance). In addition, another €10.3 million was drawn the same year, taking the amount of capital raised to €16.8 million. This sum was already on board before Finom started a Series A funding round, which demonstrates a high investor confidence in the company itself as well as the business idea. We attracted €33 million in Series A funding from internal shareholders like Target Global, Entrée Capital, Cogito Capital, and General Catalyst.

Conclusion

Summing up, the Series B funding is highly noteworthy and reflects full support from investors for Finom’s potential and business model. Consequently, there is no doubt that our effort to maintain our core values – transparency, speed, integration, and localization, and the focus of our goal to help entrepreneurs grow and boost economic development through Europe remains as constant as ever.