Vilnius-based startup DeepFin raises €685K in a pre-seed round led by Superhero Capital, Finnish early stage VC firm and joined by Iron Wolf Capital, a seed stage VC fund from the Baltics. The round also attracted several business angels. The startup develops simplified finance and tax management solutions for freelancers as well as businesses partnering with freelancers. The latest capital will help the company with the further developments of the platform. DeepFin is also aiming to expand into new markets and welcomes new team members along the way.
DeepFin is a personal financial assistant for freelancers. DeepFin is going after a large and rapidly growing freelancer and gig worker market, by offering digital tools to put their finance, accounting and tax management on autopilot.
“Our clients are typically a one-man show – they sell, deliver the actual service and provide customer support on their own. In addition, they dedicate 5-10 hours every month to manage their finances. Our product helps cut this down to a minimum, which frees up time for other activities”, says CEO and Co-Founder Algirdas Šakmanas.
DeepFin has been a beneficiary of mega trends in the labor market, with people seeking greater flexibility via independent work. Lithuania, the company’s test-bed market, has more than 200,000 independent workers, whereas in excess of 40m people engage in this type of work across the EEA. An estimated 28m people are part of gig economy platforms across Europe, with this number set to grow to 45 m people by 2025.
The company’s app enables seamless invoicing, tracking of payments via open banking, ongoing tax liability estimates, so that their clients can get paid faster, grow revenue and manage tax bills. DeepFin’s client base is highly diverse and includes gig workers, blue collar workers as well as white collar professionals. While it initially started with a B2C focus, DeepFin also found that their solution is highly relevant for companies as well as gig platforms seeking to cooperate with freelancers.
“We discovered that companies increasingly favor the flexibility of working with the self-employed, and therefore are in need of a solution that would help them manage this aspect of the business. For our corporate partners, we offer a licensing program as part of which we integrate with their systems, train their freelancer partners as well as provide our app to them”, says COO Gabija Gertienė.
The company’s early corporate partners include mobility platforms Bolt and Wolt.
DeepFin will use the investment to further enhance its product, strengthen the team as well as expand to additional European markets.