What kind of agreement is created between counterparties transacting through Levenue?
Depending on where the recurring revenue (XAAS) company and the Investor are located, the transaction/trade between them will take the form of a short-term loan or a sale of receivables. We have built a unique Legal Rule engine, ensuring that legal requirements for each specific trade are analyzed according to the jurisdictions of the parties. Based on that, the right contract is automatically generated.
Who can be an investor on Levenue platform?
Qualified Investors are eligible to invest through Levenue. According to EU law, you fall under this category if you are a regulated entity or a large enterprise. If you have a significant experience and knowledge about you can also apply and we will check if you satisfy the special legal criteria. You will be informed about the decision in less than 24 hours after having run through the onboarding process. Levenue also opened its platform for individual investors/angels with the possibility to co-invest in deals. Levenue allows and helps angels to group together and co-invest in deals. By pooling resources, angels can share both risk and return.
How should I calculate the Risk with the Assets I acquire through Levenue?
Levenue can not provide you with a fixed way of assessing the risk of investments made through Levenue. It’s every Investor’s own duty to analyze the risk of these investments within the scope of internal risk analysis. Those investments are short-term fixed income, and underwritten by recurring revenues double the size of the transaction.
What’s an Investment Strategy on Levenue?
In order to ensure the seamlessness of trading through Levenue for both sides of any transaction, it's important to ensure buy side volume doesn’t need to transact on a trade per trade level. Thanks to the Investment Strategies, Investor Side users of the platform can allocate certain amounts of capital within certain categories of Recurring Revenue companies. Filling in the parameters of the type of recurring revenue companies they want to trade with, Levenue basically gets a Power of Attorney to execute certain trades that lay within the boundaries you set. This automates the process of building a broader portfolio of contracts.
What’s the role Levenue plays in the transaction between myself and the Recurring Revenue Companies?
As an intermediary Levenue has different roles, on both sides of the market - between XAAS companies and Investors. In the first place, it rates the revenue streams as an asset, by analyzing the data behind them. The platform collects data by making connections with data sources of the Recurring Revenue companies on the one hand, treats that data in a very straightforward way, and reports on the result of that analysis. Only qualifying sell-side companies will be traded on the platform, which provides comfort to the buy-side parties. Secondly, Levenue makes sure all financial flows are underwritten by the right contracts, and fully compliant with different EU and local legislation. Once transactions are signed between both counterparties, the Levenue system also helps with the administrational handling of that transaction, providing a gateway of standardized information sharing. Finally, Levenue will make approved companies and investors strategy match to start the trading deal. The investments are run automatically through Levenue and investors receive monthly payments.