Float Secures €4.5 Million Series A Funding to Bridge the European Tech Funding Gap
Introduction to Float
Float, a Stockholm-based revenue-based financing platform, has made headlines with its recent announcement of a €4.5 million Series A funding round. This funding aims to address the persistent funding gap in the European tech landscape, particularly for small and medium-sized enterprises (SMEs). Founded in 2019 by Swiss entrepreneur Cedric Notz and German entrepreneur Jannis Koehn, Float has positioned itself as a vital player in the financial ecosystem for tech SMEs across Europe.
The Funding Round
The Series A funding round was led by Hamburg-based CHAPTERS Group AG, a holding company known for investing in promising small and medium-sized enterprises across various sectors. CHAPTERS boasts a diverse portfolio that includes notable companies like Swiss wealth management software provider Finfox and German FinTechs Fintiba and Expatrio. The involvement of significant shareholders, including Daniel Ek’s family office and Danaher founder Mitch Rales, underscores the confidence in Float’s potential.
Jan-Hendrik Mohr, CEO of CHAPTERS, expressed enthusiasm about the investment, stating, “Our investment in Float underlines our positive view on the European tech industry.” He emphasized that Float’s services not only provide reliable financing for tech SMEs but also contribute to a broader vision of empowering founders across Europe.
Float’s Unique Offering
Float distinguishes itself by combining non-dilutive funding with AI-powered financial management tools. This innovative approach allows founders to scale their businesses without sacrificing equity or getting bogged down by bureaucratic processes. The platform aims to revolutionize the traditional financing landscape, which is often fraught with delays and inefficiencies.
Cedric Notz, Float’s CEO and co-founder, articulated the challenges faced by modern tech companies in securing working capital. He noted, “The current global financial system is fundamentally broken for modern tech companies.” Float seeks to address these issues directly, providing a streamlined process that unlocks growth potential for founders across Europe.
Mission and Vision
Float’s mission has been clear: to provide liquidity to the European tech sector through non-dilutive growth capital, credit lines, and revenue-based financing. This model allows B2B SaaS and subscription businesses to fund their growth without relinquishing equity or seeking funding outside Europe.
Looking ahead, Float plans to evolve from merely offering flexible credit lines to becoming a comprehensive AI-native financial platform. This transformation will enable founders to manage their finances with greater speed and efficiency, while still keeping lending at the core of their operations.
Innovative Financial Tools
The upcoming tools from Float will leverage real-time access to bank accounts and accounting systems, facilitating financial analysis and automating tasks such as payments, expense management, and accounting. Notz emphasized that their ambition extends beyond just fixing financing issues; they aim to build a new backbone for European tech—a unified platform that integrates capital, banking, and data.
He remarked, “For too long the continent’s best founders have faced one brutal choice: give away their company or leave for America. We want founders to succeed here in Europe.”
Growth Plans and Market Expansion
With the fresh capital from the Series A funding, Float plans to double its team size and expand its presence in the UK, which is already its largest market. The strategic partnership with CHAPTERS will also facilitate Float’s entry into the mergers and acquisitions (M&A) market, further solidifying its position in the European tech ecosystem.
Since becoming operational in 2022, Float has already made significant strides, providing funding to over 130 European tech companies, including hotel revenue management company RoomPriceGenie and marketing optimization platform RedTrack. The company has allocated more than €100 million over the past three years and has achieved over 100% year-on-year revenue growth since its inception, reaching profitability on a net income level this year.
Conclusion
Float’s recent funding round and its innovative approach to financing underscore the growing need for accessible capital solutions in the European tech sector. As the company continues to expand and evolve, it aims to empower founders and reshape the financial landscape for tech SMEs across the continent.
