ASSETZ Capital co-founder Andrew Holgate has launched a new fintech consultancy, with a particular focus on online lenders.
Equitivo aims to fill a gap in the market by providing specialist advice for new and growing fintechs. Its services concentrate on three core areas: strategy, operations, and performance. It will also help platforms access new funding lines to scale up.
“There’s no support for companies in this sector, especially at the smaller end of the market,” Holgate told Peer2Peer Finance News.
“Businesses can go to large accountancy firms for advice, which can be expensive, or angel investors, who may also have big demands.”
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When it comes to the capital markets, the types of institutions who provide funding lines for fintech heavyweights such as Funding Circle and LendInvest might not be appropriate for smaller firms, Holgate explained.
“We help companies build a due diligence suite and create a capital plan, introducing them to speciality debt funds first and then banks,” he said.
Equitivo already has around 10 clients, from the UK, Germany, Spain, Lithuania, Latvia and Bulgaria. Holgate sees particular opportunities in the Baltic states, which are promoting the use of blockchain technology.
Online lenders make up the vast majority of Equitivo’s clients, with Holgate utilising his reputation and network cultivated from his time at peer-to-peer lender Assetz Capital. However, the consultancy welcomes clients from across the fintech spectrum.
Equitivo’s clients could be new start-ups or medium-sized platforms targeting their next stage of growth.
“With start-ups we would be looking to see if the business is capitalised in the right way,” said Holgate.
“We would consider an equity stake in return for consultancy work.
“With medium-sized firms, operating for three to four years, we would look at their management team and assess whether they had a good niche in the market.
“We have rejected some potential clients as they were inexperienced or did not have a strong enough proposition.”
Equitivo’s advisory board members include former investment banker Philip Toth, City veteran Robert Dellner, and Jeff Jones, a qualified insolvency practitioner turned entrepreneur.