Are you in search of a financing solution that exceeds the limitations of traditional bridge financing options? Look no further...
The world of investing offers a plethora of options, including stocks, bonds, real estate, and private equity. However, the tech era has introduced new forms of investing and capital raising.
Levenue is a revolutionary trading platform that connects high-growth, subscription-based companies with traditional financial institutions and investors. By evaluating the quality of a company's recurring revenues, Levenue offers a straightforward, non-dilutive way for companies to obtain the capital investment they need within hours. Levenue focuses on companies that operate on a recurring revenue model.
This growth in the recurring revenue market has unlocked subscriptions as a new asset class for investors, offering them the opportunity to invest in a secure and reliable investment strategy. This innovative funding option is only offered by a few platforms like Levenue in the United Kingdom and Europe and Pipe in the United States; investors can access this asset class and invest in companies with recurring revenues, reducing the risk of losing their investment.
Why you should consider Revenue Based Investing?
1. High predictable returns
Investing in recurring revenue companies is also beneficial as the returns are predictable, investors can define their investment strategy, bid with the discount defined by them, and the duration of contracts is always fixed for 12 months.
For example, if a company is in need of capital and is willing to trade its subscriptions worth €100K, as an investor, you can place bids, and the highest bidder gets the deal. Say the bid is closed at €92K. It would mean that the investor would get the contract at a discount of 8%, and the earned internal rate of return would be 18.49%
2. Risk mitigation.
Investing in companies with recurring revenues is considered a secure investment strategy that offers several benefits. At Levenue, we evaluate a company's health using over 1000 data points from the 3 sources of truth: subscription managers, banking accounts, and accounting software. Before a company can trade subscriptions on our platform, we perform data-driven due diligence to ensure it meets our eligibility criteria. This reduces the risk of losing your investment. Investors receive their returns directly in their bank accounts from the monthly revenue of a selected pool of healthy subscriptions (purchased at a discount) through our platform. Moreover, investors do not need to worry about the company's valuation or exit strategy, which can be unpredictable in the early stages of a startup.
3. Quick and Easy investment process.
Investing in recurring revenue companies through Levenue is also advantageous because investors can get started way faster than most traditional forms of investing. Since it does not require the company to go through a lengthy due diligence process taken care of by Levenue’s standard protocol on our platform, unlocking a trading limit for companies within 48 hours, investors can invest in a business without any hassle just by signing up and bidding for contracts of companies that suit their investment strategy.
4. Relative Liquidity
This new way of investing is relatively liquid, provided that the maximum term is always 12 months. Investors receive a return on their investment on a monthly or quarterly basis, making it easier for investors to access their funds if needed.
5. Standardized legal framework.
Levenue’s legal framework is fully standardised. We are present in 15 countries across Europe and taking into consideration the differences in national and local rules, Levenue’s prime unique selling point is its legal rule engine enabling the creation of specific contracts based on the identity of the counterparties. We provide a revenue purchase agreement that complies with the European regulation specific to the geography of the company. Our framework is well-established and easy to navigate legally, making it easier for investors and entrepreneurs to understand the terms and conditions of the investment.
In conclusion, investing in recurring revenue businesses is an attractive investment option for investors as the growth financing of digitally native companies is a growing market where debt financing is ever more present. Investors can potentially benefit from a steady and predictable stream of revenue while minimising potential fluctuations and maximising returns and creating a preferred investment strategy, and diversifying portfolios. Additionally, it is a fast and relatively liquid investment option, making it an ideal choice for investors who want to invest in startups without taking on the risks associated with other forms of rigid investments, which have a greater lock-up period.
You can learn more about how you can invest in recurring revenue businesses at www.levenue.com/investors