Connect with us


Fintech Company October Gets €35 Million Commitment from EIF

Faced with inflation, VSEs and SMEs need financing more than ever. In order to help them, European lending platform October has raised €35 million from the European Investment Fund (EIF) and Dutch impact investor Invest-NL for its newest SME debt fund: October SME v. In its eight years of existence, October has lent over €965 million to 3,800 European SMEs.



This new round from the European Investment Fund (EIF), which is actually the fourth for October, has enabled the fintech SME V fund to reach a size of €100 million in total commitments after its launch in September 2022. This new vehicle will have a mission of primary importance for the European Union, as it is expected to provide more than 3,000 loans to SMEs in the old continent. It is expected to reach a total of 400 million euros lent over the next two years.

And it seems to be on the right track with this new €35 million fundraising (€20 million from the EIF and €15 million from Invest-NL). It will target in particular France, Spain, Italy, the Netherlands, and Germany, in more than 15 different sectors of activity. Loan amounts are expected to range from €10,000 to €2 million, with an expected average of €130,000.

Read more on the subject and find the latest financial news of the day with the Born2Invest mobile app.

Alternative Financing to support European SMEs

“This renewed commitment to October is a testament not only to the fund manager’s track record but also to the goals that EIF shares with its clients,” said Marjut Falkstrom. Marjut Falkstedt, Managing Director of the European Investment Fund, explains. “Overall, investments in SMEs are those that preserve and create the most jobs per euro invested, which gives the EIF an important role in the European economy. I am pleased that the EIF can once again partner with October to support small and medium-sized enterprises through alternative financing.”

In its eight years of existence, October has lent over €965 million to 3,800 European SMEs. October SME V represents the 5th generation of diversified FinTech SME debt funds, backed by a community of established European institutional investors, including the European Investment Fund, Bpifrance, CNP Assurances or the Dutch institution Invest-NL. “Fundraising, whether in equity or debt, is much more difficult than it was a year ago,” explained Patrick de Nonneville, CEO of October. “Whether it’s for startups or large companies, interest rates have gone up a lot. So for us, this raise is very important, as it allows us to continue our activity by supporting European SMEs, more than ever in need.”

63% of the European Union’s workforce is employed by SMEs

According to the European Court of Auditors, SMEs are an important vector of employment and economic growth, since they employ 63% of the EU’s workforce and generate 52% of its added value. It is therefore the entire economy of the old continent that is fed by small and medium-sized enterprises. However, their health has weakened over the last three years.

“European SMEs have had a complicated time with strikes, the pandemic, inflation, and raw material shortages,” said Patrick de Nonneville. “The markets are now under pressure, at the very moment when the PGEs (state-guaranteed loans) have to be repaid. And while companies could borrow at 2 or 3% last year, they will now have offers at 5 or 6.5%. In such a tense context, our mission, which is to facilitate access to financing for SMEs, is essential.”


(Featured image by dimitrisvetsikas1969 via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in Maddyness, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us

Valerie Harrison is a mom of two who likes reporting about the world of finance. She learned about the value of investing at a young age upon taking over her family's textile business when she was just a teenager. Valerie's passion for writing can be traced back to working with an editorial team at her corporate job, where she spent significant time working on market analysis and stock market predictions. Her portfolio includes real estate funds, government bonds, and equities in emerging markets such as cannabis, artificial intelligence, and cryptocurrencies.