Photo - TraFinScout GmbH
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TraFinScout GmbH

We digitize export financing.

Germany
Market: Internet and IT, Trade, Services, Financial services
Stage of the project: Prototype or product is ready

Date of last change: 03.03.2020
Min investment
$  100.000
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Total required
$ 850.000
Rating
equalizer из 1000
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Idea

The mid- to longterm export financing market (different from short term trade finance) is almost untouched from digitalization. Thus, the market is inefficient, labor intensive and contains billions of unmet demand. The phenomenon is named "small ticket gap" (very limited financing for export orders <5m Euro). We address the inefficencies by a triple jump: digital marketplace to quick and easy connect exporters demand with financiers supply, alternative financing product for order volumes as of k250 Euro, white label versions of our software to enable banks to digitize their own business

Current Status

MVP ready, launche by begin of April

Market

Targets: Exporters of capital goods
German market: 178 bn of such exports per year, about 6.500 potential clients
Same problems exist in all EU markets, product work in all EU countries,
internationalisation planned as second step

Problem or Opportunity

Lack of small ticket export financing and lack of non correlated, attractive fixed income asset classes

Solution (product or service)

financing exports by bonds issued to institutional investors

Competitors

First: please don't mix up mid- to longterm exportfinancing with shortterm trade finance. In trade finance multiple digital business models exist.

In export financing no real competition existing.

Almost no offering from banks in the small ticket space due to cost of very old fashioned manual processes and procedures, no digitalization in export financing so far. No alternative offer.

2 other business models in the market:

HandEx - referring business to 1 single bank (Varengold Bank), limited scope only.
Tr8fin - digital Prozess for supplier credits (some kind of outsourcing solution to exporters to manage workflows of their supplier credits) but no own financing and no marketplace

Advantages or differentiators

We believe, everything today can be copied. Thus, being first mover as well as remaining in front of the queue is important.

Our differentiators are: First alternative export financing + marketplace + unique software

Finance

Revenue model is margin + fees
1m of financing equal 22,5k of revenues
New business per year is planned as (year 1 to year 5): 20m, 50m, 90m, 145m, 225m

Business model

B2B, alternative financing product addressing the small ticket gap in export financing (= lack of financing for export orders < 5m) + digital marketplace for all existing export financing solutions banks have on offer + white labeling of portal software (additional route to market, multiplier)

Money will be spent on

IT, Sales and Marketing, add Staff

Offer for investor

about 20%

Team or Management

Risks

Main risk is in acceptance of the, created by our product, new asset class.
However, feedback is positive so far.

Economic downturn would play for us because importance of suitable export financing would increase

Incubation/Acceleration programs accomplishment

None

Won the competition and other awards

Non yet
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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video