Crowdfunding via the Revenue Based Financing Marketplace
Revenue Based Financing Marketplace allows you access to certified investors to fund your company.
Companies funded
500+
Trades facilitated
€300m
Initial trade
2021
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.
Our story in numbers
How does it work?
Eligibility criteria
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.
Signup & analysis
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.
Funding & pricing
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.
Financing Options
Start your funding journey
Frequent FAQ's
How long is the signup process?
The initial phase of sharing all the required data generally takes about 10 to 15 minutes. Following this, there is a 48-hour period during which you will be notified about your eligibility and the corresponding funding amount. Once your deal is live on the marketplace, it may stay active for a period ranging from 1 to 20 days, depending on the response and offers from investors.
What is the eligibility criteria?
Key eligibility prerequisites encompass: possessing a legal entity within an European country where Levenue operates, operating as a subscription-based or SaaS company with monthly or quarterly recurring contracts, demonstrating over 12 months of revenue history, and maintaining a Monthly Recurring Revenue (MRR) exceeding 30K€.
How is the cost of capital determined?
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.
What key metrics are evaluated?
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.
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Why do investors diversify their portfolio using Levenue?
The select group of accredited investors has compelling reasons to continue increasing the amount of capital deployed in this new asset class:
Short term exposure
Contracts are purchased for a fixed 12 month term, straight line amortising and not in a 'bullet'. Indemnification made via SEPA Direct Debit Mandate.
Risk mitigation mechanisms
Levenue has developed proprietary de-risking mechanisms, in addition to constant monitoring of API connections to meaningfully reduce downside risk.
Attractive fixed rates
IRR sits at ~23% net of fees, with enviably low late payments and zero loan loss events since inception. Investors have experienced strong risk-adjusted returns.
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