Germany based online business lender Spotcap has raised a €31.5m Series B from Finstar Financial and Holtzbrinck.

Spotcap is one of the growing group of direct lenders that is leveraging data, automation and low cost infrastructure to win an increasing volume of business from the banks. It is an example of one of the main success stories of fintech companies truly commercially disrupting traditional models. It will be fascinating to see when the traditional players start to acquire the disruptive new models 

In a period of low interest rates, many competitors have predominately relied on debt financing. Very encouraging to hear that a direct lender can raise money via equity. Despite not being a major concern in the short term, this reduces Spotcap's risk exposure when interest rates are eventually increased.

This round shows that investors are still prepared to invest large amounts of capital into the right assets.