Hello friends! Axel from Gilion here.
Despite summer vibes in most of Europe, markets seem more active than ever, so let’s dig in!
Is the first billion easier than the first million?
Is the first billion easier than the first million? The Swedish cleantech company Aira, aiming to revolutionize housing with modern heat pumps, recently secured a 2.6 billion SEK (230 million EUR) loan facility from BNP Paribas. This funding will help Aira’s customers finance the pumps and their installation, marking a significant milestone for the startup, which has previously raised 1.3 billion SEK in equity.
This deal underscores several key points in the world of credit:
Customer-Centric Financing Solutions: Aira, backed by Swedish PE titan Harald Mix, showcases how sophisticated startups think beyond product development to solve their customers' financing challenges. This approach can significantly reduce growth barriers.
The Scale of Funding: Raising 2.6 billion SEK is notable for a company of Aira's size. The deal likely originated from BNP Paribas' Asset-Backed Finance team, known for crafting complex, highly customized loans. These loans require extensive resources to arrange, creating a high entry barrier for smaller deals.
For tech founders, this highlights the importance of thinking big and the potential advantages of securing substantial, well-structured financing solutions early on.
Will the tortoises win the race?
The Financial Times recently explored the landscape of fintech challenger banks in the UK. While these upstarts have driven significant improvements in digital banking and cost-effective foreign exchange, they have yet to make a major commercial impact. Despite 8% of UK accounts being with neo-banks, few are primary accounts. Additionally, these challengers face substantial issues with fraud, money laundering, and an underdeveloped risk culture.
Key insights for fintech founders:
Long-Term Vision: Building a truly transformational lending firm requires patience. Over-focusing on rapid growth can lead to generic offerings. Fundamental industry changes involve multiple paradigm shifts and cannot be rushed.
Customer Experience vs. Core Services: While enhancing customer experience is crucial, fintech companies must also focus on improving core services like lending to achieve long-term success.
For more on this topic, check out the full FT article.
rNBA: Not as esoteric an asset as you’d think
Not as esoteric an asset as you’d think As the NBA Finals heat up (go Celtics!), it's interesting to note the influx of private equity (PE) firms into major American sports. Currently, 20 out of 30 NBA teams have PE-related owners. The trend appears to be paying off: the PE-backed Celtics are leading 3-0 against the Mavericks, who, despite having two of the game's brightest stars, lack PE backing.
For founders, this trend highlights the value of strategic investments in diverse assets, which can yield significant returns and stability. The involvement of PE in sports also reflects a broader strategy of investing in high-potential, high-visibility assets.
One last thing before we go..
Exciting Milestone for Hailey HR
This week, Hailey HR announced 52 million SEK in new funding, including a new 15 million SEK growth loan from Gilion! The new funding will drive further platform development and meet the demands of larger clients. Read the full article in Di Digital.
With continued backing from H&M’s chairman Karl-Johan Persson, Kivra’s co-founder Stefan Krook, and the Wallenberg family’s investment firm FAM AB, Hailey’s valuation has soared over 80%.
Founded in 2020, Hailey HR has rapidly grown, increasing sales from 6.6 million SEK to 21.4 million SEK in one year and now serving over 500 customers.
“The market is still in its infancy,” says CEO Henrik Jakobson. “In 10 years, every company with over 30 employees will use a system like ours.”
Stay tuned as we continue to explore the ever-evolving landscape of technology and its financial ecosystem. And as always, do let us know if there’s anything you’d like for us to cover.
/Axel
