kompasbank raises an additional DKK 75 million in the hot fintech market

Denmark’s newest business bank, kompasbank a/s, is expanding last year’s Series A round of DKK 140 million by securing an additional DKK 75 million in new capital within a hot fintech market. Both existing and new investors have shown strong interest in the fintech bank’s straightforward concept and current business model, which aims to provide Danish SMEs with better and easier access to a range of financing sources. This extension of the round will be used to accelerate the development of kompasbank’s infrastructure and products in 2022.

A successful start for Denmark’s newest business bank, kompasbank a/s, has led both existing and new investors to inject further funds into the fintech bank. Before the end of the year, the bank closed an additional DKK 75 million on top of last year’s Series A round, bringing the total capital raised by kompasbank in 2021 to DKK 215 million. This is a clear signal that investors see significant potential in the 100% cloud-based bank with its proprietary digital infrastructure, which makes kompasbank independent of existing banking platforms.

"We have been very conscious from the start that if we were to address the challenge Danish SMEs face in obtaining better access to loans and capital, we needed to think about banking in a completely new way. That’s why we built kompasbank from the ground up with entirely new technology, detached from existing notions of infrastructure, service, products, and banking operations,” says kompasbank’s founder and co-CEO, Michael Hurup Andersen, and continues:

“We are very pleased with the support from both existing and new investors for our business model and concept. The extension of our Series A round with an additional DKK 75 million will be used to deliver more tailored solutions to our customers.”

High demand for new financing options among SMEs

kompasbank received its banking licence from the Danish Financial Supervisory Authority (Finanstilsynet) in March 2021 and opened its doors to the first customers in August 2021. Since receiving the licence, the bank has quadrupled its staff, approved business loans amounting to a three-digit million sum, and received a significant amount of deposits from Danish private customers who wish to avoid negative interest rates on their savings accounts.

“Our customers have so far given us great opportunities to use our platform and expertise to provide them with further growth opportunities. We are grateful for this and hope it continues in the future. However, we are very aware that this is a privilege we must earn every day. We do this through better advice, faster processing times, and tailored financing solutions—every time. It’s challenging, but if we get it right, we have a unique opportunity to make a tremendous difference to Danish businesses,” says Michael Hurup Andersen.

Accelerating growth in 2022

kompasbank’s mission is to help small and medium-sized enterprises achieve their full potential, allowing them to increase their competitiveness and meet their growth ambitions precisely when opportunities arise. This means that SMEs must have quick and continuous access to risk capital in a specialised form. It’s good for the economy and job creation, and the extension of the Series A round will be used to further accelerate the development of kompasbank’s digital infrastructure, product development, and growth in the first half of 2022.

“As an independent, cloud-based bank without branches and cumbersome, slow systems, we have both lower costs and a range of development opportunities that other banks do not. With the added capital, we can reach even more SMEs faster, expand our services, and launch more products that create additional value for growth businesses. We are strengthening this position by increasing investments in our platform, organisation, and talent pool, as well as by creating new partnerships with other technology companies.” says Michael Hurup Andersen.