Crowdfunding via the Revenue Based Financing Marketplace
Revenue Based Financing Marketplace allows you access to certified investors to fund your company.
Get Crowdfunded via Revenue Based Financing Marketplace
Crowdfunding has taken a significant leap forward with the introduction of revenue-based marketplaces, offering a alternative approach to business funding. This method is of particularly interest for companies that generate most of their revenue via monthly subscription and have low physical assest. might not align with the typical criteria for standard loans or traditional equity financing.
A notable advantage of this crowdfunding model is its independence from personal guarantees. Unlike conventional loan structures where personal assets are often used as collateral, this revenue-based crowdfunding approach protects the personal property of business owners. This feature is especially appealing to entrepreneurs who are cautious about intertwining their personal financial well-being with their business's financial obligations.
Additionally, this model of crowdfunding allows business owners to retain complete equity in their venture. Unlike equity-based crowdfunding or venture capital, where a portion of the company's ownership is exchanged for funding, revenue-based crowdfunding in a marketplace setting ensures the entrepreneurs keep full control over their business. This aspect is crucial for those who value maintaining total ownership and decision-making power within their company.
Businesses need a MRR of 30k, positive growth and a broad subscriber base. Your business needs at least 6 months of financial data for our team to analyse. Currently, we fund European businesses across 16 jurisdictions.
On signup, businesses connect bank accounts, accounting software and subscription managers to our platform. The Levenue algorithm analyses these datasets, and if deemed eligible, our team provides you with a trading limit.
Draw on your trading limit at your discretion. The amount you trade will be offered to investors on Levenue's platform. Our pool of funding partners may then bid on your offering, and come to a fixed price via sealed bids.
Your company connects via APIs, providing access to bank accounts, accounting software and subscription managers. With these, we analyse a company's entire financial history, diving into the growth profile over time, the quality/stickiness of the underlying subscriptions, and the cash burn rate.
After our analysis is complete, we will issue a trading limit, using data alone. It is at the company's discretion how many of their subscribers they will trade for up front capital. Investors bid in a Dutch Auction for the offered contracts until a discount rate is reached.
Levenue can only underwrite recurring revenue. We do not accept one-time retail revenues, for example in an FMCG e-commerce business. If your business has a mix of revenue sources, get in touch to see if you are eligible.
We evaluate growth rate, subscriber churn and cash burn. Furthermore, we look at cash flow stability and the indebtedness of a business. We will continue to constantly analyse these key metrics throughout the life of the trade.