Italian factoring startup CashInvoice launched an equity crowdfunding campaign on CrowFundMe, hoping to raise at least 200,000 euros ($222,000), the company said in a statement.
The minimum investment is 500 euros ($555), and the FinTech is planning to go public when it reaches investments of 1 million euros ($1.11 million), based on a pre-money valuation of €7 million ($7.77 million), according to CrowdFundMe. CashInvoice said anticipated growth will enable it to self-finance an initial public offering (IPO) in 2021.
"CashInvoice is a sophisticated system that integrates various verification channels and automates various processes, in order to analyze companies and credits, compare the proposed solutions and prepare direct disbursements on the corporate account," the CrowdFundMe page states.
Luca Scali, CEO of CashInvoice, said in a statement that the startup is among the top three Italian FinTech operators, and it has more than 2,000 companies on its platform.
If the the company reaches its minimum financial goal, it will use the money “to enhance customer origination channels and develop new services,” the CrowdFundMe page states. Aside from the minimum financial goal, “additional objectives are focused on strengthening the structure through the acquisition/participation of other entities.”
The company raised 300,000 euros ($333,000) in May in a seed funding round. Based in Milan, Scali is a business angel and partner of Digital Magics (an Italian incubator for innovative startups).
If CashInvoice reaches its 500,000 euros ($555,000) target, it will join the few startups that are financed with equity crowdfunding and quickly move to a subsequent round on the stock exchange.
In the U.S., the Securities and Exchange Commission (SEC) is planning to introduce an initiative that will lower the entry bar for startups to raise capital via crowdfunding by raising the crowdfunding limit to $5 million from $1 million.
The plan is open for public comment. Officials said they are hoping it can create more options for young businesses and widen access to investments beyond venture capital or traditional small- to medium-sized business (SMB) loans.