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The fraud scheme was the first stumbling block: a Swiss trading firm sold fake invoices to investors on Advanon's platform to as many as 78 investors. Advanon, which hasn't been found at fault, said its platform would limit itself to institutional clients as a result of the episode.

Pulling Up Drawbridge

The subsequent hiring spree – including former UBS banker Oliver Banz as co-CEO alongside Lojacono; Tobias Treiber as head of risk, and Ross McEwan as its technology architect – was expensive. Advanon's new cash burn rate alarmed its investors, who eventually demanded changes.

Some of the shareholders injected new cash this summer, several people familiar with the matter told finews.com. The caveat: Advanon would have to pull up the drawbridge, VI ordered. Gutenberg didn't respond to a request for comment.

Reversing Hiring Spree

Lojacono was forced to retreat from the foreign expansion – and to dismiss staff.  Banz has since left Advanon, with Lojacono sole CEO. Operating chief Markus Gehrmann remains in his job but has given notice, according to a person familiar with the events (Gehrmann didn't respond to finews.com's request for comment). 

Lojacono confirmed key points of finews.com's reporting in a written response to questions. Advanon has probably grown too big too fast, he said: «as a result we had to refocus on our traditional strengths,» the CEO said. Co-founder Kornmann had already left Advanon last year (Pieper remains with the company as product chief).

Remaining Upbeat

The fintech's current team is concentrating on distribution in Switzerland and in Germany, and on improving its processes, according to Lojacono. Advanon's investors are backing the company's business model and strategy, he noted.

«The strategic focus has born fruit so far, and we're optimistic for the future,» Lojacono said. According to experts, Advanon's chances of surviving and thriving remain intact: the idea behind the fintech remains sound, despite its growing pains, said one who has followed since its founding.

«The right execution and mastering the ever-growing challenges are another story altogether – but that is what will decide on its success or failure».

 Reporting by Peter Hody and Katharina Bart