Backers of the startup, as mentioned by the source, include Partech Ventures, Techstars Ventures and Cabiedes & Partners.
NoviCap, which primarily focuses on Southern Europe and particularly Spain, provides a marketplace where SMEs can raise financing by trading their invoices.
Those buying the invoices - investors such as family offices, high-net-worth and corporate investors - are offered a discount, while NoviCap takes a commission on each transaction. The startup also pitches its marketplace as another way for investors to diversify their portfolios.
The European alternative finance market - which includes crowdfunding, peer-to-peer lending and invoice trading - reached EUR 3 billion in 2014 and could top EUR 7 billion in 2015, according to a report produced by the Centre for Alternative Finance at University of Cambridge Judge Business School and professional services organisation EY (formerly Ernst & Young). The report also highlighted that the European online alternative finance market grew by 144% in 2014, and is expected to grow more this year.
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