Inyova presents a polished image: «Your money can do more», says the Fintech startup’s website: «Impact investing generates financial returns and uses your money for greater sustainability. Fully digital, Swiss Made.»

Customers can invest from as little as 2,000 Swiss francs in trending themes like «renewable energy», «human rights» oder «plant-based foods». Based on the user’s sustainability preferences, the robo-advisor suggests a matching selection of stocks from a universe of around 300 companies.

Custody with Saxo Bank

The custody accounts are held with Saxo Bank, which is 48.88 percent owned by China’s Zhejiang Geely Holding Group.

Just over a month ago, finews.ch reported that the impact investing company was still awaiting approval from FINMA to operate as an independent asset manager.

Finma Approval Granted

As Inyova confirmed to  finews.ch , the approval has since been granted: «Yes, Finma has issued its approval. As usual, the approval will become legally binding once the standard conditions are implemented (e.g., enactment of the organizational regulations).»

Inyova’s financial stability has recently come under scrutiny. In July, the financial blog «Inside Paradeplatz» reported: «Hype-Tech ‹Inyova› had only enough cash to last seven more months  in 2023.»

Annual Loss of 2.62 Million

According to the 2023 annual report obtained by finews.ch, Inyova was not profitable last year. Revenues amounted to 2.43 million francs (of which 2.29 million francs was from services), while operating expenses reached 3.69 million francs, resulting in an EBITDA of negative 1.26 million francs.

After depreciation, financing results, and taxes, the company ended the year with a net loss of CHF 2.62 million.

Swiss Federal Government and Schaffhauser Kantonalbank on Board

As of December 31, 2023, equity stood at 2.39 million Swiss francs (down from 5 million francs on December 31, 2022). The German subsidiary is recorded on the balance sheet at its historical acquisitation cost of 5 million francs.

The liabilities include a CHF 3 million loan from Schaffhauser Kantonalbank, which is guaranteed by the taxpayer under the Federal Innovation Fund.

Auditor Raises Red Flag

With current assets of CHF 3.4 million, the company’s auditor, W&P Treuhand AG, raised concerns about «significant uncertainty regarding the company’s ability to continue as a going concern.».

Financing Rounds Necessary

The notes to the financial statements further elaborate: «As of December 31, 2023, Inyova AG had cash of CHF 3.1 million, sufficient to cover the liquidity needs of operating activities for seven months.»

The «Going concern» davon ab, «whether the necessary liquidity can be secured through additional financing rounds and whether the long-term profitability of the company can be ensured».

Is Inyova AG expecting to achieve positive operating cash flows by 2026?

In the annual report dated May 28, 2024, the Board of Directors stated that it «expects to complete a financing round in Q2 2024 that will fully cover the liquidity needs of Inyova AG and its subsidiary until at least December 31, 2025».

This financing round is currently being prepared, with «0.75 million francs in commitments already secured as of the end of April 2024. Furthermore, the Board anticipates generating positive operating cash flows by 2026 and achieving profitability by 2027.»

«Fully funded»

finews.ch inquired about the status of the urgently needed capital increases, to which Inyova responded: «Our financing plans for 2024, as outlined in the annual report, have been significantly exceeded, including a completed financing round in Q2 and a crowd-investing round. Our outlined plans are thus fully funded.»

Crowd Investing as the Tool of Choice

In spring 2022, Inyova raised approximately 7 million francs in fresh capital from around 3,000 small investors through crowd investing, with Finma’s approval for this form of capital raising.

This seems to be the preferred method once more to avert the looming financial shortfall. On April 22, Inyova announced another crowd investing round, which has since been completed, though on a smaller scale.

Secured for Now

Inyova has not disclosed the amount of capital raised in the 2024 financing round and the crowd investing. However, according to the platform «startupticker.ch» nearly 500 investors invested over CHF 1 million in total.

For now, it appears that Inyova’s future is secured.

No Further Crowd Investing Planned

Inyova stated that no further crowd investing rounds are planned: «The purpose of our recent crowd-investing round was primarily to grant our existing crowd shareholders their preemptive rights.» Man habe mit den Aktionären sehr gute Erfahrung gemacht: «As customers, they invest significantly more and recommend Inyova much more often».

However, further expansion of the crowd shareholding «not a strategic goal», though preemptive rights will continue to be granted in the future.

«Five-Figure» Customer Base

The path forward remains challenging. To achieve operational profitability by 2026, the company needs to increase revenues by one-third, given the current cost base. This is against the backdrop of a trend where ESG themes are less favored than before.

Inyova did not provide detailed information on the number of customers but stated that it is in the «five-figure» range. During the crowd investing in spring 2022, the startup reported having 8,000 customers with assets under management of around $200 million.

Partnership with Migros Bank

The service revenue of 2.29 million francs reported in the 2023 financial statements suggests that volumes remain in this range—Inyova charges its customers between 0.9 percent and 1.2 percent in fees on the invested assets per year.

Wie das Unternehmen schreibt, konnte im aktuellen Jahr der operative Cashflow «significantly increased» this year, and the company is «on track on track to achieve positive operating cash flows by 2026». The partnership with Migros Bank, which started in early 2024 and «is going very well» (finews.ch reported), is also contributing to this, although no further details were provided.

Finma: No Comment

Finews.ch contacted Finma to inquire whether Inyova’s approval process had been completed. As is customary in individual cases, the financial market regulator did not comment, noting that a positive final decision is recognizable when an institution appears on the corresponding list.

finews.ch also inquired with Finman about its stance on crowd investing as a viable tool for capital raising within the regulated financial sector. Finma responded with a general statement, not addressing the specific case, and emphasized that crowd investors acquiring a qualified hare, without referencing the specific case, pointing out that crowd investors, if they acquire a qualified share (exceeding 10 percent of capital or voting rights) must demonstrate «assurance of proper business conduct.».