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
MVP ready, launche by begin of April
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
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
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
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)