Mantvydas Štareika, CEO of CapitalBox

Today we're meeting Mantvydas Štareika, CEO of CapitalBox, a leading European FinTech lender dedicated to providing loans to SMEs. Find out more about the origin story of the company and read what Mantvydas would do to the banking industry if he had a magic wand!

Over to you Mantvydas!

Who are you and what's your background?

I'm an expert on SME lending and banking, and a lifer in the credit risk and insurance world. My educational background is in law, which I studied at Mykolas Romeris University in Vilnius before receiving my MBA from the Stockholm School of Economics. My first proper foray into finance was through Coface, a trade credit insurance and risk management company that specialises in factoring, debt collection, bonding, and information services. I started there in 2007 and I worked my way up to CEO of the Baltic States. In 2021, I departed to serve as head of the supervisory board and CEO of SME Bank, and I landed at CapitalBox in December 2022. I've been deep in the FinTech world for the better part of the last two decades, and I love it here.

What is your job title and what are your general responsibilities?

I'm the CEO, which means all the major decisions about the present and future of CapitalBox come across my desk. On a daily basis, that means being highly involved in new branch launches, market expansion, C-suite recruitment, and product improvements. Currently, my primary focus is on driving growth and introducing new products. We recently launched an invoice purchasing service and are in the process of introducing factoring in partnership with another company. Additionally, we are rolling out revenue-based financing.

My focus is on leveraging our technology through various internal projects aimed at scaling operations, improving customer retention, boosting sales. These projects are tailored to the unique market and customer needs in each country we operate in. As a leader, my task is to foster creativity within our teams, ensuring that successful strategies in one country are effectively scaled to others.

Can you give us an overview of your business?

CapitalBox is a FinTech company dedicated to providing alternative financing solutions to SMEs and entrepreneurs across Europe. We're tackling the significant funding gap that many businesses face due to an over-reliance on outdated financing methods. Our solutions are designed to be fast, secure, and highly personalized, all with one clear mission: to empower our innovative clients with the capital they need to achieve meaningful growth.

We currently operate in five key markets: Finland, Sweden, Denmark, Lithuania, and the Netherlands. One of our flagship offerings is the Instalment Loan, which provides up to EUR 500,000 with flexible repayment terms ranging from 6 to 36 months. These loans are tailored to support SMEs in crucial areas such as expansion, inventory management, marketing efforts, hiring new personnel, and acquiring or leasing equipment. Additionally, we offer a dynamic Credit Line product, giving SMEs access to credit limits between EUR 5,000 and EUR 150,000, providing the flexibility they need to manage their cash flow effectively.

In 2023 we launched secured loans in Lithuania and Finland to enhance and increase the flexibility of our offering. With loans of up to €3 million, CapitalBox enables SMEs to pursue significant investments like expanding operations or adopting new technology. We also collaborate with retail partners to offer financing solutions at the point of sale, enabling business customers to make purchases with ease. And we're not stopping there—our commitment to expanding our offerings and support for SMEs is unwavering because we believe they are the backbone of the European economy.

Tell us how you are funded?

CapitalBox was founded in 2005 as part of the Multitude Group, a global provider of digital financial services. At that time, Multitude's remarkable success in the consumer lending space was evident, which sparked a compelling idea: if consumer lending was flourishing, why couldn't business lending achieve similar success? In 2005, B2B lending was still underdeveloped in many countries, including Finland and Lithuania, where B2C was the dominant force. Recognizing this opportunity, the management team decided to back the vision and fund the venture.

With Multitude's support, CapitalBox was born, initially launching in two markets: Sweden and Finland. The company began by offering small loans to SMEs, testing the market with modest amounts. The response was swift and positive—our sales grew rapidly, validating our business model and proving there was a strong demand for our services.

In 2023, I had the privilege of joining CapitalBox as CEO. This year, the company achieved €25 million in revenue, while our loan portfolio saw significant growth, increasing from €87.5 million at the end of 2022 to €103.3 million by the close of 2023. This continued growth underscores our unwavering commitment to serving SMEs across Europe and affirms that our initial vision and funding journey were well-founded.

What's the origin story? Why did you start the company? To solve what problems?

I can't take the credit for starting CapitalBox. That being said, since joining as CEO, I've made a deliberate effort to keep this company aligned with its founding mission: to address the underfunding gap facing European SMEs head-on through smart alternative lending products. There's no overstating the problem of the underfunding gap. 99 percent of European companies are SMEs, and yet these SMEs are underfunded by some 400 billion Euros. CapitalBox was founded to fix this, and that's what we're working at fixing every single day with every single offering.

Who are your target customers? What's your revenue model?

Our target customers are innovative SMEs seeking forward-thinking, modern financing solutions—particularly those currently overlooked by traditional banks. A typical CapitalBox customer is a micro-to-small company that has been in business for at least a year, employs around three people, and generates approximately €500,000 in annual revenue. These businesses often need financing to fuel their growth, manage liquidity fluctuations, or navigate seasonal challenges. They value the innovative technology and rapid financial support that CapitalBox provides.

Our revenue model is straightforward: we generate income through interest and fees on the financing solutions we provide. By offering flexible terms and personalized service, we ensure that our customers receive the support they need, while we maintain a sustainable and scalable business. This customer-centric approach is at the heart of what we do, and it's what drives our continued success in the market. Additionally, we partner with various service providers, such as invoicing services and other companies that assist SMEs in their daily operations. This strategy allows us to integrate our financing solutions into the broader ecosystem of services that small businesses rely on, enhancing our reach and relevance in the market.

If you had a magic wand, what one thing would you change in the banking and/or FinTech sector?

I would accelerate the shift toward embedded finance, eliminating the need for traditional financial intermediaries and aligning the industry with the new speed of life. Right now, most companies still rely on financial services directly from banks, but the future lies in integrating financing directly into the services people already use—making it a seamless, almost invisible part of their transactions. Imagine acquiring a business through your legal provider or paying for business purchases directly from your revenue without ever dealing with a bank.

In the next few years, I foresee financing becoming a commodity, much like paying for a phone in instalments directly from your paycheck. This model not only increases convenience but also matches the fast pace of modern life, where everything happens quickly and efficiently. However, while we move towards this automated, embedded future, it's crucial that we don't lose the human touch. Companies and consumers still value real-person contact, especially for reassurance against fraud and to address more complex needs.

The challenge, then, is for FinTech companies to adapt to this new reality—where speed and automation are balanced with the assurance of human interaction. That's the future I'd love to see: finance that's both seamlessly embedded and reassuringly human.

What is your message for the larger players in the Financial Services marketplace?

If you're not taking FinTech and alt-lending seriously, take another look. This sector of the financial industry has never been stronger or smarter or more innovative. Yes, companies like CapitalBox were founded to fill the gaps created by traditional banks, but the future is ultimately in collaboration, not competition.

Where do you get your Financial Services/FinTech industry news from?

I start my work mornings by diving into a variety of financial newsletters from both established publications and industry influencers. Some of my favourites include Fintech Brainfood by Simon Taylor and Marcel van Oost's FinTech Newsletter, which offer sharp insights into the latest trends and developments. I also make it a point to check the Financial Times to gain a broader perspective on how financial technology is shaping the global economy. LinkedIn is another go-to source of news for me—it's where I catch up on what my colleagues and industry leaders are sharing, keeping me in the loop on the latest discussions. By the way, I'd be happy to connect there, so feel free to send me an invite.

Can you list 3 people you rate from the FinTech and/or Financial Services sector that we should be following on LinkedIn, and why?

• Lasse Mäkelä, Chief Strategy and IR Officer at Multitude Group. He is an exceptional leader within the M&A field and a true entrepreneur in and beyond FinTech.
• Efi Pylarinou is influential within the FinTech space and an essential follow on LinkedIn. Her work as a thought leader, advisor, and content strategist has really pushed the sector forward.
• Marcel van Oost has done incredible things for building the FinTech community's global media influence and visibility. His newsletter and platform Connecting The Dots in Fintech is an indispensable source.

What FinTech services (and/or apps) do you personally use?

I'm a big believer in staying connected with the latest in FinTech by using the services myself. One app I rely on daily is Revolut —it's incredibly versatile for everything from budgeting to international transfers, and their seamless user experience sets the standard for digital banking. I also use TransferGo, a Lithuanian-founded company that makes international money transfers quick and affordable—perfect for sending funds across borders with minimal hassle.

What's the best new FinTech product or service you've seen recently?

Recently, I've been taking a close look at a digital banking services designed specifically for small and medium-sized businesses. While I won't name specific players, what truly impresses me is how this service goes beyond just accounts and payments—it offers essential features like expense management, detailed reporting, and even savings products. SMEs are often overlooked by traditional banks, particularly when it comes to digital services and the convenience of managing finances online. This approach is exactly what the sector needs to genuinely empower SMEs in today's rapidly evolving digital landscape.

Finally, let's talk predictions. What trends do you think are going to define the next few years in the FinTech sector?

FinTech has already embraced personalisation in terms of customer experiences, and we should expect personalisation to continue trending and expand beyond products into more specific and ephemeral customer preferences. I think we're going to see the industry find its footing with AI as well, and figure out where this technology can actually take us as the mania calms down a bit.

Thank you so much for taking the time to participate, Mantvydas.

You can find out more about Mantvydas Štareika on LinkedIn and read more about his company CapitalBox at https://www.capitalbox.com/.