Float raises €4.5 million to expand revenue financing platform

Float, a Stockholm-founded fintech that provides revenue-based financing to technology small and midsized companies, has raised €4.5 million in a Series A round led by Hamburg-based Chapters Group AG, Finextra reported. The funding gives the company additional capital to expand in the UK, which Float says is already its largest market, and to increase headcount.

Founded in 2022, Float offers non-dilutive growth capital, credit lines and revenue-based financing for B2B SaaS and subscription businesses. The company says its products allow founders to fund growth without giving up equity or pursuing fundraising outside Europe.

For early-stage software and subscription companies, that structure is positioned as an alternative to equity financing. Instead of selling ownership in the business, companies can access capital through financing products tied to their commercial profile, while retaining their shareholding structure. Float’s materials describe the offer as growth funding that sits alongside banking and financial data tools.

Float has provided funding to more than 130 European technology companies since launch, according to Finextra. The company has allocated more than €100 million over the past three years, with customers including RoomPriceGenie, a hotel revenue management company, and RedTrack, a marketing optimisation platform.

AI platform planned

Float says its next objective is to build an AI-native financial platform that combines capital, banking and financial data in one place. The company says the product is intended to help founders spend less time on financial administration and more time building their businesses.

Once operational, the planned platform will use live access to bank accounts and accounting systems, according to Finextra. Float says the system will provide financial analysis and automate finance tasks including payments, expense management and accounting.

The planned product would place Float in a broader category of fintech providers seeking to combine credit, bank connectivity and workflow automation for companies with recurring revenue. The information released by the company did not specify a launch date for the platform or provide details on pricing.

UK growth focus

Float says the new Series A funding will support a doubling of its team size. The company also plans to expand its presence in the UK, which it identifies as its largest market.

The financing round was led by Chapters Group AG, which is based in Hamburg. Float did not disclose additional investors in the information reported by Finextra.

The raise comes as European software and subscription businesses continue to seek financing options outside traditional venture capital rounds and bank lending. Float’s stated focus remains on B2B SaaS and subscription businesses that want access to growth capital while avoiding equity dilution.

This story draws on original reporting from Finextra Research.