Danish fintech startup Dealflow, led by co-founders Sid Mudgal and Seb Haugeto, has received an additional €500,000 from international investors.
Dealflow has developed an invoicing platform that helps small businesses save on transaction fees, obtain real-time financing, and automate most “financial workflows.”
The company makes money through paid monthly subscription and various transaction fees. According to Hogito, the company needs around NOK 20 million per month to become self-driving.
When Seb Haugeto's Danish fintech startup raised money, the price was one of the highest in the Nordic region earlier this year.
– Now we move several million a month. Our goal for the rest of the year is to get close to break-even so that we don't have to rely on investors, says Hugito, CEO of Dealflow.
The capital being injected now comes just months after the previous funding announcement.
The new round includes both existing and new investors, such as Unicorn founders Peter Mead and Ralf Reichert, venture capitalist Thorbjörn Rooney, “talent investor” Eure led by Daniel Diebold, and a group of business angels including Felix co-founder Quentin Selhorst, former director Customer Relations at Klarna Erik Hallum, and Principal at PayPal Ventures, Alex Bottenbruch.
– I focus on investing in entrepreneurs with distinguished talents. “I am convinced that Sepp and his team have the qualities needed to create an innovative and globally relevant fintech company,” says Daniel Diebold.
100 companies registered as users
The company can point to several promising signs. The waiting list has increased by more than 14,000 percent since the last funding round, with more than 100 companies signing up.
These companies mentioned the monthly volume they wanted to process with Dealflow, so the total volume rose from €70,000 to over €10 million in a few months.
They achieved this with a very small team of six people.
The team recently qualified the top ten companies for a new web app. This group is said to have increased the volumes they processed through Dealflow by 390 percent from month one to month two. This should have happened without further input from the team.
– I'm happy to see that our first web application customers are finding our solution useful for everything related to invoicing. Hugito says the future looks bright.
Free international transfers
Dealflow is currently the only invoicing platform on the market that allows businesses to make free global transfers using local accounts and receive real-time financing when sending and paying invoices.
The platform also integrates directly with the settlement accounting system and can automate payment flows such as subscriptions. They describe themselves as the next generation “invoicing operating system” for business owners.
– To what extent can you solve the problem of transnational invoicing today?
– We make it easier for businesses to save on fees related to international bank transfers, currency conversions and card fees, while at the same time providing more control over cash flow through real-time credit offers directly in the platform. These are all typical problems with transnational invoicing today, Hugito says.
“relentlessly obsessed”
Sepp, who was recently named to Forbes' Financial 30U30 list, continues:
two? three? No, four Norwegian entrepreneurs are on Forbes' list of the top 30 people under 30
-At heart, we are a products company. The goal of the new funding is to invest in engineering and roll out our products in a controlled manner to customers on the waiting list.
– What do you think is the most important thing to focus on right now?
– For Dealflow, it is now mostly about continuing to be “relentlessly obsessed” with our customers, and ensuring that we can continue to provide a world-class service that has the potential to win in the international market.
-In the beginning there was a lot of talk about influencers, digital nomads, etc. Is this still a core part of the business model?
– It was a good place for us to start due to the limited competition, but we have really progressed in the market and now focus mostly on larger companies with a monthly income of at least NOK 200,000. It has helped a lot when it comes to growing faster!
It is especially nice to be Norwegian in Denmark after the exit tax
– How has it been building a company from Denmark in the past year?
– There was a good mix of Nordic standards and a very international culture in the financial environment in Copenhagen. I speak mostly English and work mostly with upper class international people.
But he was not completely isolated from changing words in his homeland.
– It was “also nice to be Norwegian in Denmark” after Norway's political elite showed themselves from the unfortunate side after changing the proposed rule on taxation of shares in companies at an early stage. Unfortunately, many of my international friends now have a very different impression of Norway because of this. My outside view from Denmark has shown that Norway's political leadership lacks the will to understand and have good experience in how value creation actually works, beyond natural resources such as oil. It is sad to look at the Norwegian, especially because we live in a world where international value creation is crucial to future prosperity.
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