*** News In Brief ***
German investment firm Global Founders Capital (GFC) has taken part in a £5 million (€6.1m) round in British startup Iwoca, which provides short-term finance to online retailers in the UK. Iwoca says it will use the money to drive growth and leverage its current operations.
Munich-based GFC was formed as a partnership between Oliver and Marc Samwer of Rocket Internet fame and Fabian Siegel, former CEO and co-founder of Berlin-based fast food startup Delivery Hero. In a statement, Siegel said that the fund is looking to invest in proven concepts with a large market potential: “The team at Iwoca has demonstrated extraordinary execution skills and [is] committed to breaking new ground in business lending. We will put our expertise in building Internet companies and our global network at their disposal to help them drive [forward].”
Iwoca was co-founded by Christoph Rieche and James Dear in March 2012. It funds the growth of ecommerce businesses by providing access to short-term financial support. Rieche pointed out that ecommerce in the UK is still experiencing double-digit growth, and said: “Our highly innovative approach to data analysis and credit scoring coupled with Global Founders Capital’s experience and global puts us in an incredibly strong position to take advantage of the structural change within the business lending industry.”