How EFSI benefits SMEs in Europe - Vækstfonden case study: Modsvar (Denmark), Online platform for designer goods

In 2015, Kristina Brinck wanted to create a new concept – an online platform where designers can sell their products directly to consumers in small quantities. The idea was to offer small Danish designers the opportunity to display their fashion goods without juggling the risks related to over-production. On top of that, the more products are bought, the cheaper they get, allowing customers to enjoy up to 35% discount on the designer goods.

However, at that time, Kristina could not afford to quit her full-time job and realise this dream. Several investors presented themselves to her, but Kristina turned down their offers as she wanted to keep full control over her project. Eventually, she secured an EU-guaranteed loan provided thanks to the Danish Growth Fund Vækstfonden and backed by EIF under the Investment Plan for Europe. This EU initiative that aims to generate new investments by facilitating access to finance for small and medium-sized enterprises across Europe has allowed Kristina to quit her job and devote herself completely to her company.

Without this loan, it would have taken her a lot longer to get started or she would have had to accept her investors’ propositions and sacrifice part of her company’s ownership: “As a new company owner with an idea I am passionate about, it was important to me to stay in control. This loan was the right choice for me, because it means that I do not have to give up a part of my company to somebody else before I am ready.”

Today, Kristina has mostly used the loan for her company’s operations and has plans to hire additional staff to expand her concept further.

Company: Modsvar (Denmark)

Type of business: Online platform for designer goods

EIF financing: COSME LGF, EFSI

Financial intermediary: Vækstfonden

For further information about EIF intermediaries in Denmark, please refer to: http://www.eif.org/what_we_do/where/dk