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Danish fintech raises €2.5 million to help other SMEs avoid going out of business

Publish date: 18 June 2020
Author: Likvido

Back in 2018, Maximillian Frimmer and Lars Holdgaard’s first startup went bankrupt. All the processes in their former company were automated except for the invoice management, which in the end, consumed their time and cash flow. Following this experience, Frimmer and Holdgaard made it their mission to find a solution to this critical problem and started Likvido, with the aim of building the new standard in invoice-management automation.

Since then, they have been challenging the manual and time-consuming processes SMEs face, when sending, registering and collecting invoices from their debtors. The demand for this kind of product turned out to be  massive. Within Likvido’s two years of existence, they have gained over 2,000 SME clients.

Likvido has now raised a €2.5 million Seed-round led by BlackFin Tech, and joined by existing local investors.The funds will be used to further develop Likvido’s solution for automating the invoice management and the collection processes in a faster and more user-friendly way, closing the EUR 400 billion financing gap for European SMEs. The solution is particularly relevant for SMEs losing vital liquidity right now due to COVID-19.

“Our goal is to become the European market leader within the invoice-management-system category. This seed investment will allow the optimization of 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,” says CEO and founder Maximilian Frimmer.

Likvido intends to use the Seed-round to become ready for a Series-A round in twelve months. That investment will allow Likvido to kickstart an international expansion with the mission to help SMEs mitigate the liquidity challenges many are facing, while at the same time strengthening the dialogue between the creditor and the debtor, now and in the future.

Saving 80% of the time spend on debtor management

Company owners and professionals that integrate Likvido in their workflows and accounting systems can truly forget about the whole invoice management process. From invoice payments to dunning and collection, Likvido’s solution aims at becoming the one-stop-shop for SMEs, when it comes to invoice orchestration.

By implementing Likvido’s automation solution, customers can save up to 80% of the time allocated for debtor management and receive their invoice fees 20-50% faster.

For BlackFin Tech Likvido is a natural addition to the investment portfolio. Investment Director, Michele Foradori, says about the investment: “We have decided to support Likvido’s team as they are passionate and dedicated to solving one of the most tedious and time-consuming problems for SMEs. Until now, SMEs have often been disregarded by most “financial” players. In the past few years, we have been witnessing a radical shift around how the SME’s accounting and finance teams are served. With Likvido, we have found a committed and motivated team with the urge to answer these needs proactively.”