Float raises €4.5 million Series A for revenue-based financing

Float has raised a €4.5 million Series A led by Hamburg-based CHAPTERS Group AG, giving the Stockholm-founded revenue-based financing company fresh capital to expand its lending and financial software offering for European tech SMEs. The company did not disclose its valuation, revenue, current headcount or the size of any previous rounds.

CHAPTERS CEO Jan-Hendrik Mohr will join Float’s board as part of the transaction. Float said the money will be used to grow the business, increase its UK presence and add AI-powered financial management tools around its core financing products.

Founded in 2022, Float provides non-dilutive financing to technology companies through revenue-based financing, credit lines and working capital products. The company says it has supplied more than €100 million in funding to over 130 European tech businesses so far, naming RoomPriceGenie and RedTrack among its customers.

More than a lending round

Float is positioning the round as a step from flexible financing toward a broader financial platform for startups and scaling companies. Lending will remain the main business, according to the company, with new software intended to help founders track finances, make decisions faster and automate operational work.

The planned product connects to bank accounts and accounting systems, Float said, so customers can see financial information in real time and handle workflows including payments, expense management and accounting. The company describes the next version as an “AI-native” financial platform, though it did not give product benchmarks, pricing, launch timing or details on which AI functions are already live.

Cedric Notz, Float’s CEO and co-founder, said the company was created after his own experience trying to secure working capital. He argues that financial services for technology companies remain split across local providers and manual processes, while startups often sell and hire across borders early in their lives. Float’s pitch is that founders should be able to access capital, banking and financial data in one place without giving up equity.

UK growth and possible M&A angle

The UK is already Float’s largest market, according to the company, and part of the Series A will go toward strengthening that position. Float also said it plans to double its team, though it did not disclose its current employee count, making the scale of that hiring plan hard to assess.

The CHAPTERS relationship may also matter beyond the capital. Float said the partnership could help it assess opportunities in the M&A market. It did not name targets, transaction types or a budget for acquisitions.

The raise comes as European founders continue to face a thinner growth-capital market than their US peers. Float said that gap restricts expansion options for startups and can contribute to high-growth companies moving outside Europe. For lenders and finance platforms, that creates a commercial opening: companies that cannot or do not want to raise equity still need working capital, credit and better cash visibility.

Float’s reported €100 million in funding volume gives it some operating history in a crowded alternative-finance category. The new round is modest by venture standards, so the proof point will be whether it can turn borrower relationships into a durable software and financial services platform, rather than a lending business with AI branding attached.

This story draws on original reporting from Tech.eu.