With more data, uncertainty can become easier to manage. Moneyflow was born during the pandemic and managed to not only come out stronger but also close € 250 million funding round. Now, they hope to help other companies flourish too, no matter the time.
We are in unprecedented times. A pandemic, looming wars and full-scale wars, potential economic downturns and a crypto crash. The crises have shown that digitalisation, and on many occasions, fintech solutions can be an important tool for companies to navigate through uncertain times.
One such solution is Moneyflow, a Danish fintech company helping businesses get paid on time. Moneyflow was founded in 2018 by entrepreneurs Kim Ulf Rehfeld Thoden and Werner Valeur. When they were ready to launch, 2020 had rolled around and the covid crisis was ready to launch full scale as well. “It was a black swan event we had not seen coming. Most people hadn’t. No one could predict with certainty what was going to happen,” says Kim Ulf Rehfeld Thoden.
“We love intuition and gut feeling. But when we look at how a company is run and how we can help finance them, we use data. Data rarely lie. Used right, data tells us exactly what is going on”
Kim Ulf Rehfeld Thoden, CEO & Founder, Moneyflow
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Pattern match on data
Kim, at 57 and with multiple businesses behind him, has been through his share of crises and restrictions. He has helped SMEs with credit and liquidity in the dot com crash, the Eurozone crisis and the global financial crisis of 2007-2009. It has given him the extensive experience to draw from and patterns to match on when new situations arise that needs solving.
“When there is a lot of volatility and nervousness in the market, typically companies will hunker down and focus on what they do best. Innovation takes the backseat and we go back to basics. As a 100 per cent data-driven company, what we aim to do is to take a deep look into what the data tells us. We can give the companies real-time insights into what is going on in their business, where they make their money, what is working and what needs attention now,” Kim Ulf Rehfeld Thoden says.
That way, Moneyflow can advise companies on when and where to be cautious.
“We love intuition and gut feeling. But when we look at how a company is run and how we can help finance them, we use data. Data rarely lie. Used right, data tells us exactly what is going on,” says Kim Ulf Rehfeld Thoden.
Recommended for you: Get your copy of the Nordic Fintech Magazine Fall Edition 2022
Data rarely lie
The pandemic made a known struggle even harder for SMEs: during financial crises, SMEs are starving for capital because banks are less willing to offer loans and customers’ have extended payment terms.
According to Harvard Business Review, firms extended their days of payables outstanding (DPOs) from 76 to 83 days in Europe and 59 to 69 days in the United States during the 2004-2017 period. Days matter. Liquidity matter. This is exactly what Moneyflow help SMEs handle.
“We basically take over the relation to the customer. We have automated the entire bookkeeping and invoicing process, so you don’t have to think about it. You get paid immediately and we take on the risk”
Kim Ulf Rehfeld Thoden, CEO & Founder, Moneyflow
In May 2020 when Corona rampaged through the world, Moneyflow launched their MVP. They onboarded 100 customers that turned into happy customers. Their service was needed. In the beginning, Moneyflow had bigger losses than expected but by using the data and focusing on the near-term goals they managed to ramp up to 2000 customers. Now, on the other side of the pandemic, Moneyflow has closed a round of 250 million euros from Belgian Aion Bank. This means that Moneyflow’s smart liquidity system will be available to even more SMEs through Moneyflow’s collaborators.
“Our mission is to help as many companies as possible to navigate safely through crises. Nothing is worse than seeing a healthy company that started in boom times suffer and potentially have to close down because of a black swan event. No one can predict those. And sometimes all they need is a few 100.000 kroner to be able to focus on the right things to survive,” Kim Ulf Rehfeld Thoden says.
About Moneyflow
- Moneyflow creates liquidity and makes companies’ future earnings available through the latest technology. Moneyflow has developed the most sophisticated SME credit score on the market combined with advanced risk and payment predictions. This ensures quick payments to the invoicing company while eliminating the risk of late payments and resources spent chasing late invoices.