Interview with Michel Ivanovsky on Innovative White-Label Solutions for Crowdfunding and Asset Management
1) Mipise positions itself as both a Fintech and a Regtech. What does this imply?
Mipise is indeed a Fintech, a technology-focused company that offers SaaS software in the financial domain to handle complex financial processes related to dematerialization, fundraising subscriptions in crowdfunding, or asset management. In this context, we provide banking services and financial transaction processing. Regarding the dematerialization of fundraising subscription contracts, we also operate as a Regtech because we automate the production of legal documents, especially subscription contracts for Private Equity funds, which are complex deliverables of over 150 pages. To dematerialize and automate the production of these contracts, we combine technology and legal expertise, which is a key component of our positioning. Mipise has been operating in this segment for 10 years now, and since our inception, we've raised nearly 3 million euros. We have a team of around thirty employees and serve more than seventy investment companies. In 2022, thanks to our two solutions dedicated to crowdfunding and asset management, we crossed the threshold of one billion euros in funds raised by our clients.
2) Can you tell us more about these two solutions?
Mipise Crowdfunding caters to businesses looking to create their own crowdfunding platform to raise funds from investors for various projects. With this tool, we cover all use cases in the market, including fundraising through donations, loans, bonds, or equity shares. Similarly, Mipise Asset Management is a white-label platform for dematerializing fundraising and distribution of investment funds (Private Equity, real estate, private debt, infrastructure, and forest groups). Our clients are primarily AMF-regulated asset management companies, and our solution allows them to digitize the passive management of their activities.
3) What challenges and issues do you address?
Through our solutions, we enable our clients to focus on their core business: managing their investors and investments. In this context, our challenge is to provide them with a completely customizable, regulatory-compliant, secure, rapidly deployable, and cost-competitive solution. Additionally, our solutions must be scalable to incorporate new regulations so that our clients constantly remain in compliance with the requirements of supervisory authorities, such as ACPR and AMF.
4) Can you provide concrete use cases?
In the crowdfunding domain, we work with niche-focused platforms. For example, GwenneG, a crowdfunding platform using our solution, finances impact projects and real estate in the western region of France through bond offerings. Another example is Credofunding, which finances projects serving the Christian community, such as renovating Church properties. In this context, dioceses can seek bond loans from investors who are sensitive to these issues.
In the asset management sector, around thirty asset management companies use our solution. Isai, for instance, offers our solution to institutional or private investors for investing in funds marketed by the company. We also assist numerous players in digitizing their fundraising operations, including Rothschild & Co, CA Indosuez, French Food Capital, Impact Partners, Qualium Investissement, IQEQ Equitis, Consultim Group, Norma Capital, and more.
5) How are your model and approach distinctive?
We have two primary differentiation factors. First, our ability to integrate into a very broad value chain sets us apart. For instance, in crowdfunding, we not only provide the technological solution to build the platform but also handle the entire payment account management, allowing our clients to focus on their core business. This capability to secure all stages of the value chain is something that the market recognizes. Similarly, in the asset management segment, we are capable of addressing all digitalization-related issues across the entire liability side of an asset management company. Lastly, we offer completely customizable solutions with extensive customization possibilities.
6) In this rapidly evolving finance market, what are your projections and ambitions?
We continue our development by capitalizing on what has made Mipise successful to date, which is our ability to cover a wide range of our clients' value chain. In this regard, our objective is to integrate payment processing into our offering to cover the entire value chain, from subscription upstream to marketing, back-office processing of flows, and payment realization.
Our second development focus is international expansion with an initial focus on Europe. In the crowdfunding segment, a European regulation has recently been adopted by various countries. This presents an opportunity for Mipise to replicate in these countries the model we have developed and operated in France for over 10 years.
In the Private Equity space, there is also international regulation. Currently, we are exploring commercial prospects to diversify and establish a presence in other markets, including Luxembourg, Germany, Switzerland, the United Kingdom, and Ireland. We are currently expanding into rapidly growing markets that are expected to consolidate. Therefore, we do not rule out external growth operations if opportunities arise in the coming years.