When equity meets credit – a new service for startups from FiBAN partner Nordea
October 15, 2018
We are excited to announce a new service, pre-approved credit from Nordea for startups selected to pitch at PitchFinland, and whose equity round is successfully closed. Yes, that’s right! We are thrilled to be launching this together, because what’s a better way to support growth companies in their growth goals than to work together?!
The question was simple, how can we better serve the startup ecosystem and make the funding process easier for startups, business angels and other key players? And this is what we came up with. Nordea will offer conditional pre-approved credit decisions to startups who have gone through the FiBAN deal flow process and are selected to pitch at PitchFinland. The credit approval depends on whether the equity round raises the required minimum amount of funds. The loan terms and conditions are determined in advance, case by case.
Combining debt and equity can enable startups to gather more funds to help grow their companies to the next level. The upside of debt compared to equity is that, naturally, debt won’t dilute your shares. This can improve investors return on investment and accelerate the companies growth. Having a pre-approved credit approval in your pocket is a positive signal to investors that your company is ready to be invested in and can speed up discussions.
So, in a nutshell, the ABCs of the service:
- Apply for funding from FiBAN business angels at fiban.org/submit. One application covers both services. All FiBAN services for startups are free of charge.
- Be well prepared. It is crucial that you send all of the necessary information which FiBAN needs for pre-screening and which Nordea needs to make the credit decision.
- Come to PitchFinland to pitch for business angels with a pre-approved credit decision from Nordea in your pocket. The credit approval is conditional and is dependent on the equity round.
And a few bonus D’s, Dream, Do, Dare and Don’t hesitate to contact us if you have any questions!
Amel Gaily, FiBAN’s Managing Director
Vesa Riihimäki, Head of Startup and Growth, Nordea