Fintech company Five Degrees, headquartered in Breukelen and Reykjavik, has received 10 million euro in growth funding from new shareholder Karmijn and existing shareholders Velocity Capital and 5Square.
Five Degrees is a company making midoffice software for banks. The company was founded in 2009 and is based in Breukelen (near Utrecht) and Iceland. It already has a significant customer base, including KNAB, and has 61 employees, according to Linkedin.
The company is therefore more a scale-up than a startup. Nevertheless we report on their success, because we want to provide Dutch startups insight in their funding options once they become a scale-up.
As you may have noticed from our overviews of startup funding in 2015 , funding in 2014 or funding Q3 2016, it is relatively common for early startups to find smaller amounts of funding in The Netherlands. Scaleup funding is however much harder to find in the Netherlands, so this funding from Karmijn and the other investors is very welcome.
Karmijn kapitaal is a Dutch Venture Capital fund, founded in 2010, that raised 90 million in funding earlier this year. It is led by three female founders (see photo) and has a unique focus on investing in diversity. According to their website, they invest in companies led by men and women. Previous investments are mostly non-fintech, such as Jopen beer, Marlies Dekkers and Fred de La Bretoniere.
“Their investment is a sign of trust in our belief that delivering top technology is about people and creating an environment that is about unconventional thinking brought to perfection”, said Martijn Hohmann, CEO of Five Degrees, in a press release. The funds will be used for product development and international expansion.
The other investors include existing shareholders, among which Velocity Capital. A VC firm led by Willem Willemstein that previously invested in other Fintech startups such as online broker Tradeking and Bux.
Image Credit: Karmijn