On August 14th, Infidia entered a new chapter with its remarkable success in the BlockStart accelerator. At first, the expert team recognized the idea of Infidia helps businesses via seamless invoice financing. However, acquiring first adopters and following KPIs brought Infidia to the Top 5 of the BlockStart’s Open Call #1!
Even though our team had significant Startup experience, BlockStart mentorship sessions proved viable. Having KPIs to meet and smart questions asked helped us refine our specific niche.
Even though Infidia is for all small businesses, we choose our initial customers based on previous working experience. For this reason, we focus on small manufacturing and distribution companies. Due to the co-founders’ understanding of their business, it was easy to explain our software benefits.
Moreover, BlockStart provides support for SMEs adopters, unlike any other program. As the end result is SME adopters’ satisfaction, this program boosts SME adopters’ motivation to give timely feedback.
With the validation from BlockStart, our team is marching forward, as Infidia helps businesses grow each day.
Help for Businesses in 2020
2020 is going to be one of the most discussed years, also in terms of the economy. Right from the start of the crisis, scholars and gurus chase to predict future affairs. Yet, due to the uncertain circumstances, it is hard to acknowledge these opinions as grounded.
Even before, economic theories were mathematically reasonable, but most times, not empirically correct.
For example, Ricardo’s Comparative Advantage is reasonable, fostering the specialization between nations. However, the central presumption of free international trade never happened.
Similarly, the free market is the prerequisite of the Invisible Hand of Adam Smith. In this case, too, government acts restricted full implementation.
It is because the governments’ idea is to support, but not risk the public welfare for the economists’ experiment. Still, government acts can also damage businesses, such as in a China-US Tax War example. As it is concealing lesser-known motives, politics is a massive factor influencing the market rules.
Yet, the circumstances of 2020 changed the rules radically in ways never seen before. In this case, government acts were just the reaction. Justified or not, the consequences of these acts on the economies were immense.
Logically, by reducing or stopping the cross border traffic, the preventive move “prevented” the free trade, too. Obviously, this act severely hit small businesses dependent on imports or exports.
According to the regular Survey by European Central Bank (October 2019 to March 2020), SMEs had improvements in trade credit (by 3%) in the given period. However, the same survey showed that they also expected a significant reduction (-20%) during the situation in March.
By doing so, companies are transmitting risks to buyers. At the same time, there is a paradox as lesser demand imposes a struggle for customers. Thus, imposing more favorable trade credit as a necessity.
Choosing Who to Support First
In 2020, any advice on how to survive the recession would count. It is because a recession happens for three reasons:
Or the combination of three.
At first, the economic shock of 2020 was one of the fastest and most profound. As a result, panicking companies drew $100 billion from the credit lines. Finally, no official source could have provided bulletproof expectations.
With an initial idea of helping the world to recover, BlockStart mentorship sessions brought us back to reality. In these circumstances of the high demand but strangled resources, Infidia had to choose who to help first.
Without abandoning this dream, as a Startup, we recognized our limits. Since knowing their struggles, our first choice was small manufacturing and distribution businesses.
As one of the Infidia co-founders worked in these companies for 8 years, he can predict the current situation’s influence. Moreover, give advice to companies on finding the solution, suggesting to behave progressively.
Infidia co-founder was already dealing with financials at C-level positions. He has a proven track record of fostering efficiency and specialization. That’s why he knows that whenever a company makes a choice to grow, liquidity issues lurk.
One piece of advice is that, in uncertain times, companies can benefit from trade terms more than ever. However, these also lay a treat for the business’s survival. For these reasons, Infidia helps businesses by reducing the risk of trade terms and solving liquidity issues.
Infidia Helps Businesses to Obtain Finance
Like the most entrepreneurial journeys, the path of Infidia was longer than it looks. Like the famous story of the bamboo growth, it took five years of watering, learning, failing, practicing, and pivoting.
Similarly, the specific invoice financing model was the combination of the knowledge of its co-founders. Knowing each other from the previous Startup, when they realized that they can work together.
Therefore, besides the ability to sell and lead, the prerequisite for success is the technologically advanced solution by Infidia co-founder. Since he is listed as the Blockchain Expert in the EU, Infidia co-founders complete each other.
Accompanied by the great team, they march as one since the day one. All motivated by the same vision where Infidia helps businesses to survive and grow after 2020.
Originally published at https://www.infid.app on August 17, 2020.
