Cases Overview | Advisory Capveriant Platform

Overcoming the “chicken-and-egg” problem: How Fintech platform Capveriant tripled their userbase

As a spinoff of German bank Deutsche Pfandbriefbank, Capveriant combines the expertise of a traditional European financial institution with a digital approach: they developed an online platform for public financing. Their marketplace matches municipal treasurers seeking financing with institutional investors such as banks, insurance companies, credit, or pension funds. By streamlining the loan tendering process and reviewing applications, Capveriant enables direct interactions between credit lenders and borrowers without the need of a broker.

After creating the platform in 2018 and onboarding its first users, Capveriant was looking to grow its userbase. Here, they faced a "chicken-and-egg" problem many two-sided marketplaces have to deal with: to onboard more municipalities, they had to show a decent number of investors, to attract investors, they had to boast a fair number of municipalities.

Similar situation? We’re happy to help.

To decide which user group they should focus on first and define the right measures to scale their platform, Capveriant joined forces with the BMI Lab, an advisory with yearlong experience of platform consulting. Their Business Model Upgrades, one of their Advisory offerings, address clearly scoped business challenges with compact, high-paced projects.

Few months after the workshop sessions, Capveriant has overcome the "chicken-and-egg" problem and is steadily growing its userbase. To date, 450+ platform users in Germany and France have tendered a volume of 3+ billion euros through Capveriant. Yet, the program’s impact went beyond that.

Identified growth engine

Systematically analyzing their current business, value proposition, and growth cycle has enabled Capveriant to identify municipal treasurers as their platform’s growth engine. Even more importantly, interviewing them about their day-to-day challenges – and how their platform can support them in reaching their goals – has helped Capveriant’s team to improve the solution.

Strengthened business model thinking

Participating in the workshop sessions did not only enable Capveriant’s team to resolve this specific business challenge. During the four workshop days, they were introduced to the St. Gallen Business Model Navigator methodology and learned how to apply it to their day-to-day tasks. This way, the team had the opportunity to strengthen their business model innovation capabilities, a skill that will continue to benefit them and Capveriant well into the future.

Regular growth pitstops

The cooperation between Capveriant and BMI Lab also continued. Once a year, BMI Lab checks in on Capveriant’s growth progress. During regular workshop sessions, BMI Lab’s experts and Capveriant’s team review the previously set goals and work on new growth opportunities, such as adding new services to the offering.

Business Model Upgrades are high-paced, short-term projects that deliver a clear answer to a specific business challenge – from the ideation of novel business model ideas, through the integration of new solutions into the existing business to the realization on the market.

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