Finverity - Closing the Funding Gap in Emerging Markets
When investors struggle with the fragmented supply chain finance sector and lack of standards and visibility of the money chain, Finverity offers a solution, first in a class.
In this new era of globalization and improved connections, still, a historical financial gap exists between developed countries and those still in development. Having founders ready to invest on one side and emerging small businesses with fresh ideas, but need financial support to survive on the other, is like having two islands that need each other.
Luckily, a new technology platform, innovated by Finverity, is the long-awaited bridge that overcomes the gap. This new system enables smaller investors to penetrate emerging markets with full ownership and control of the funds and assets they invest.
Finverity is the newborn star of two young men, Viacheslav Oganezov - Slava and Alex Fenechiu. Both coming from third countries and being willing to find a way to provide financial support to small new businesses were the driving force that made their vision a reality. Was it good luck?
Read the full story of Slava’s and Alex’s big dream below.
A Dream for a Better World
The brains behind what would later become Finverity were born in two different countries, Slava in Russia and Alex in Romania. Both of their home countries were considered “emerging markets,” and development was not fast enough to catch up to the rest of the world. Uncertainty of the progress in their countries and unpredicted overnight changes from good to worse were strong enough reasons for the bold decision they made - leaving home. This meant moving to the UK to study, to find a prosperous and brighter future.
The year when Slava and Alex moved to London was crucial as destiny played its role in their lives, and the two became friends. These two ambitious students of Cass Business School in London had a similar understanding and a mission in life - to do something about the financial support local businesses were struggling with. Understanding the challenges that their and other third-world countries are facing in an unfair world led to hours-long discussions on how to overcome the financial gap.
Studying abroad at that time was not easy, especially not in the UK if you’re coming from Emerging markets. His parents’ financial support was insufficient to complete his education, so Alex started working in Investment Banking at JP Morgan during his second year of studies. Similar to Alex, Slava started working for PWC as a digital strategy consultant for the financial sector in his last year of studies.
A New Star Shines the Sky
Their early professional engagement in London couldn't be more valuable for the bright future. While the credit system in developing countries was facing inefficiency and illiquidity, they realized how the world is unfair, and billions of pounds are losing value unenriched. Slava couldn’t calm down until he found a way to redeploy the efficiency.
He continued his MSc education at the School of Economics and published his dissertation ‘The effect of digital platforms on disintermediation of the credit market: Rise of Peer-to-Peer lending.’
His fellow Alex joined him in 2017, and their vision from an early age transformed into reality; Finverity, a new star, shined up in the sky of start-ups in September that year. For the first time, problems in the global finance system were addressed, explained Alex at the stage of Web Summit 2019 in Lisbon. Finverity is first in a class of invoice trading platforms that enables investors from developed markets to connect with the high-yielding, low-risk opportunities in developing markets.
These two young men with such a crazy idea went through a hallway of start-ups and struggled a lot, failing as well. But they didn’t give up on their dream until the day when every single piece found its own place.
Evidence of Success - The First of Many
In March 2018, Finverity entered a funding pre-seed round where they raised £350,000. This was initially enough to give them the start they needed but was only the first of many funds to come. Over the following years, they have managed to get a total of £2.75 million, which subsequently gave them the push they needed.
People are those who build and grow the company, who are the face and spirit of its culture, and who make the impossible possible. So is the case with Finverity. In 3 years, a team of incredible people was built, finding each other when needed, and being there during the period of struggling and savoring.
A brilliant team together with a new approach with the technology behind it made the crazy idea a reality. In 2020 Finverity found the success formula to overcome and bridge the funding global finance gap by over $100m. And this was only the beginning of their journey on a long road to go on.
When your Beliefs become the Company’s Values
Fairness was the key for both, from an early stage when they had endless talks as students, unaccepting the world as is. Today, this value is embedded in the company they founded. Having the knowledge and capacity for fair and objective analyses of the 3rd world markets is the key to opening the door to great opportunities for potential small businesses.
Trusting each other but having the trust to give opportunity where it is due and being transparent and honest in what they say make Finverity successful in collaboration with new partners. But moreover, caring for the customers and their experience and doing things in the right way make Finverity outstanding in how the work is done and how bright the future can be.
Being included in Startup Grind Accelerate Program among the top 30 startups from the region, and being designated out of 2% graduates by The Founder Institute’s Select Portfolio, says enough about the potential that these prestige associations recognized in Finverity.
Moreover, the integration of Ebury into the Finverity platform and becoming an SAP partner selected from a few startups distinguish Finverity from competitors. Nothing speaks of someone’s success better than the results achieved with hard and dedicated work. The innovative platform of Finverity was recognized as the best in class.
Dreaming with open eyes does not keep Slava and Alex away from what is their aim today. They can be proud of having a company standing strong on its own legs. A team of 21 proven professionals, empowered by the 4 Advisory board members, is the key asset of Finverity. As a cross-border supply chain finance platform for the mid-market, they aim to close the gap of $3.5 tn. The platform enables more companies that need an optimization of working capital to connect with investors who seek to invest in alternative assets but are limited in access.
Identifying these two islands that were separated for a long time and building the desperately needed bridge for both sides is far more than a great business idea. It is a dream of visioners who want to see the world as a better place to live for all, a world of equity, prosperity, and well-being.
In the end, it wasn’t just luck - it was hard work, perseverance, and a strong will to make a change.