The objective of the collaboration is to improve the availability of alternative financing solutions for Finnish growth companies.
The market for digital financing services has grown in the Nordic countries in the past few years at an annual pace of as much as hundreds of per cent. For example last year, the size of the investment-based crowdfunding platform market rose to EUR 56 million. With the collaboration of Nordea and Invesdor beginning in June and capitalising on Invesdor’s digital financing platform, Finnish growth companies will have an even broader range of alternatives for raising funds.
– Our collaboration model is a good example of how we are to an increasing extent developing new services and offering them to customers in collaboration with the best partners in the industry. Invesdor is the leading digital fundraising platform in the Nordics with high standards, an objective to develop the industry continuously and a licence to offer investment services in 28 countries, says Aleksi Lehtonen, Head of Business Banking Finland at Nordea.
The service offers companies the chance to seek growth financing in the form of a capital investment. Moreover, the digital financing platform provides an interesting alternative for investors who want to be involved in the crucial growth stage of a new or an expanding company.
– The Nordic countries are pioneers in the development of digital financing. One proof point is that not only startups but also companies in a more mature growth phase are using digital funding tools, also known as crowdfunding services, to expand their ownership base in preparation for an IPO, for example, says Invesdor’s CEO and co-founder Lasse Mäkelä.
– As the largest bank in the Nordic countries Nordea is an ideal collaboration partner for us. We will generate high potential by enabling investors and growth companies to meet online across country borders, says Mäkelä.
Startups and growth companies especially interested in digital financing
According to the definition by the European Commission*, crowdfunding covers financing platforms that serve as channels for funding campaigns of a total consideration below EUR 1 million in a way that combines self-directed investors and digital distribution. In addition to crowdfunding, Invesdor arranges larger-scale funding.
The key target group of crowdfunding solutions consists of startups and growth companies that are served by a dedicated Startup & Growth unit in Nordea. The unit’s lending portfolio is experiencing robust growth and amounts to more than EUR 250 million. The unit’s projects involve more than 1,300 growth companies. The unit currently holds a market share of approximately 75% in startups and growth companies in Finland.
– At the moment, Startup & Growth serves about 2,500 startup customers in Finland. The customers have been very pleased to enjoy our special expertise in growth and growth financing. The crowdfunding collaboration with Invesdor is a highly welcome addition to our financing solutions, and I expect our customers – both growth companies and private equity investors – to show a lot of interest in it, says VesaRiihimäki, Head of Startup & Growth Finland at Nordea.
In addition to the wide-ranging and alternative financing solutions, the strength of Nordea’s Startup & Growth unit lies in the comprehensive international network available for finding investors and other collaboration partners to support growth. All Nordic countries have a local Startup & Growth unit.