Bitbond Launches Alternative Investment Fund in Partnership with 1741 Fund Management

Peer-to-peer small business financing platform Bitbond has entered into a partnership with 1741 Fund Management to launch an alternative investment fund.

The new investment opportunity is made possible through an open-ended investment fund from 1741 Fund Management. Through the partnership, any institutional investor will have access to a diversified portfolio of small business loans that are originated through Bitbond’s small business lending platform. The new product is set up as an Alternative Investment Fund under the E.U.’s Alternative Investment Fund Managers Directive.

Germany-based Bitbond offers small businesses across the globe fast access to working capital. Its platform connects small business owners with individual and institutional investors and leverages the blockchain to send cross-border payments quickly and inexpensively. Because Bitbond requires less manual involvement than traditional underwriting methods, it also has the advantage of scalability.

Since it was launched in 2013, the Bitbond platform has facilitated more than 2,300 loans worth $7.4 million (€6 million), most of which is used as short-term working capital for online retailers. Bitbond, which holds its own BaFin regulatory license, boasts more than 130,000 users from 120 countries.

At FinovateFall 2016, Bitbond launched an automated SME scoring engine. The tool offers a universal, automated scoring method that provides borrowers instant funding after their application is accepted. Last spring, the company brought in $5.4 million in debt financing and an undisclosed amount of equity funding, taking Bitbond’s total equity funds to more than $2.4 million. Radko Albrecht is founder and CEO.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Bitbond Gains $5.4 Million Debt Commitment and Undisclosed Equity Investment

Peer-to-peer small business financing platform Bitbond announced today it has received a debt commitment from Obotritia Capital, which has agreed to fund $5.4 million worth of loans on its platform. Obotritia has also invested an undisclosed amount of equity in Bitbond, whose current funding now totals more than $2.14 million.

Headquartered in Germany, Bitbond offers small businesses across the globe fast access to working capital. It does so by connecting small business owners with individual and institutional investors. Because it leverages the blockchain, Bitbond sends cross-border payments to merchants quickly and inexpensively. Since it was founded in 2013, Bitbond has originated 1,700 loans to small businesses in 120 countries.

Above: Bitbond’s Radko Albrecht (CEO & Founder) and Jarek Nowotka (CTO) debut the company’s automated SME scoring engine at FinovateFall 2016

At FinovateFall 2016, the company launched an automated SME scoring engine. “The main challenge about creating an international lending platform is credit scoring because data is different from one country to another,” said Bitbond CEO and founder Radko Albrecht in his recent FinovateFall demo. He added, “At Bitbond we have solved this and created the most international and most scalable SME scoring mechanism.” The tool offers a universal, automated scoring method that offers borrowers instant funding after their application is accepted. Because Bitbond requires less manual involvement than traditional underwriting methods, it also has the advantage of scalability.

Earlier this year, Bitbond partnered with blockchain remittance service Bitpesa to improve access to working capital for small businesses in Africa. Last fall, the company received its BaFin license, a certification that allows it to conduct asset brokerage on its platform independent of banks.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

 

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Bitbond Closes on $1.2 Million in Funding

Screen Shot 2017-02-21 at 11.35.59 AM

If peer-to-peer lending isn’t hip enough to pique your interest, how does bitcoin lending sound? That’s exactly what Germany-based Bitbond is doing that earned them $1.2 million in investor funding today. This boosted the online SME lender’s total funding to $2.3 million.

The round was led by mobilike founder Şekip Can Gökalp. Other contributors include Fyber founders Janis Zech and Andreas Bodczek as well as Kreditech co-founder & CEO Alexander Graubner-Müller. Founder & CEO of Bitbond Radoslav Albrecht said, “We are happy to have such experienced investors supporting us on this exciting journey.” According to Albrecht, the funds will help Bitbond to “make lending and borrowing globally accessible” by furthering product development and growing its user base in underserved markets. Currently, the company has 76,000 registered users from 120 countries.

Since launching in 2013, Bitbond has extended 1,600+ loans worth $1.2 million. The company matches investors with SME borrowers from across the globe by leveraging the blockchain for cross-border payment processing. In October of 2016, Bitbond received a regulatory license from German regulator BaFin, making it one of the first regulated blockchain-based financial services providers.

Screen Shot 2017-02-21 at 2.07.08 PM

Bitbond’s Radko Albrecht (CEO & Founder) and Jarek Nowotka (CTO) on stage at FinovateFall 2016 in New York

At FinovateFall in September, the company launched automated, universal scoring for SME lending. As Albrecht said in his demo, “The main challenge about creating an international platform is credit scoring, because data is different from one country to another.” The new offering solves this with its scalable, automated scoring mechanism that offers applicants an instant loan decision.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

FinovateFall Sneak Peek: Bitbond

Bitbond_homepage_August2016

FF2016-Logo-wdate-largeA look at the companies demoing live to 1,500+ fintech professionals on 8/9 September 2016. Register today.

Bitbond is the first global marketplace-lending platform for small business loans. The company will showcase its automated and country independent SME scoring.

Features:

  • Instant approval of SME loan applicants
  • Consistent scoring quality across countries for investors
  • High scoring efficiency and scalability

Why it’s great
Bitbond scores SME borrowers consistently and efficiently across different countries.

Bitbond_Radoslav-AlbrechtPresenters

Radoslav Albrecht, CEO and Founder
Albrecht is the founder and CEO of Bitbond; previously, he was a senior consultant at Roland Berger and worked at Deutsche Bank London.
LinkedIn

 

Bitbond_Jaroslaw-NowotkaJaroslaw Nowotka, CTO
Nowotka is the CTO of Bitbond. He is an experienced software developer and previously ran Helloslash, a website builder.
LinkedIn

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.