Why
Raise capital to turn around a failing fintech company
How
Identify the turnaround narrative
Chart new path toward growth
Package the findings and send to investors
What
Worked with management to identify the company’s strengths
Formulated growth plan, including detailed assumptions needed to achieve 10X revenue growth
Worked with management to approach multiple investors
The challenge
Our client was a distressed insurance company that needed new capital and direction to evolve. The company was losing €1.5m per year as increasing regulatory burdens and infrastructure costs choked out growth. The company needed new capital to grow volumes—and discipline to keep costs in line. But first, it needed a plan to show how the sinking ship could be saved. Feeling the pressure, the firm’s owners asked Invenio to prepare and validate the turnaround narrative.
What we did
By leveraging our fintech networks, we created and validated an investor-facing narrative. First, we spoke with several fintech CEOs to see how they could leverage our client’s core assets via partnerships and bundled services. Then, we worked with management to separate core strengths from liabilities.
Looking closer, we saw a way for the client to grow its dominance in a specific insurance niche while cutting other, less attractive initiatives. The result was a three step plan:
1)Â Â Â Create a breakeven business positioned for growth
2)Â Â Â Grow core asset across geographies
3)Â Â Â Expand the solution set to access fast-growing adjacencies
As investors and operators, we have experience balancing ambitious growth plans with achievable commitments. Anticipating complexity, we prepared a project plan for each stage of the turnaround. In the end, we showed the steps needed to achieve profitable growth. By immediately reducing costs, updating the sales model, and pursuing focused growth bets, we showed how the company could become profitable in 18 months and achieve a €200 million valuation by 2025.
Outcome
In the span of two weeks, our analyst and investment management prepared the above materials and presented them to investors. The story is still being written today.
