The founder of N26, Maximilian Tayenthal, wants to borrow shares in the new bank to get a bank loan.
Maximilian Teinthal takes out a loan and uses his company as collateral. The N26 co-founder is said to have pledged part of his shares to the new bank and obtained a loan from the Austrian private bank Schellhammer Capital Bank in return. This came from the call of the Extraordinary General Assembly at the beginning of July. Approval for new funds will be granted there. It represents about 3,000 shares and therefore about 2 percent of N26 shares. The online portal “Finance Forward” reported this first.
This process is particularly common for listed companies. A prime example of this is Elon Musk. The businessman borrowed part of his shares in the car manufacturer Tesla in order to obtain loans. In the case of privately owned startups, such transactions are usually not publicized. N26 spaces the same. According to N26, an equity mortgage “improves the capital structure of a private company” and has nothing to do with the activities of a bank.
The 42-year-old fintech board member will apparently use the money to invest in other startups or make other investments. Vienna is one of the most active business angels in the German-speaking world. His portfolio includes Aitme, a startup developing robots for kitchens, as well as banking startup Upvest and Austrian investment app Beatvest. Among other things, he also invested in a music club in Berlin. 22 investments are registered to his company Tayenthal Ventures UG.
The interesting question is what amount of loan Tayenthal will receive from the bank in exchange for the shares. Theoretically, the block of shares would have been worth about $180 million in the latest round of financing. According to the company, at that time the company was valued at nine billion dollars. However, the Financial Times recently reported that N26 investor Allianz X was looking for buyers for a portion of its N26 shares, which are now valued at just $3 billion. In this case the value of the shares would be around $60 million. However, the actual value that the bank will accept as collateral is likely to be less. Overall, Tayenthal still owns about 9.5 percent of the company.
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