Venture Capital Alternative with Revenue Based Finance
Extend your runway and maintain control with revenue based finance.
How Revenue-Based financing works with venture capital.
Venture capital stands as an exemplary funding choice for businesses eyeing significant growth potential, particularly when an increase in growth opportunities renders it an increasingly feasible option.
However, even during successive rounds of venture capital investment, it's crucial to focus on amplifying growth independently. By doing so, companies can achieve a higher valuation, maintaining a more substantial stake for them and initial investors in their enterprise against the capital required.
In this context, Revenue-Based Financing emerges as a vital tool, especially for businesses with recurring revenue models. This approach allows companies to access up to 12 months of revenue upfront, circumventing the often protracted and arduous processes of traditional fundraising and bank loan applications.
Therefore, for enterprises confronting opportunities that demand immediate capital, prioritising Revenue-Based Financing to leverage existing revenue can be a strategic move before seeking venture capital.
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.