Company funding via Revenue Based Financing
Bring your future recurring revenues forward for company funding
Companies funded
500+
Trades facilitated
€300m
Initial trade
2021
Use Revenue Based Financing for Company Funding
The landscape of company funding has been transformed with alternative financing solutions. Such as like Revenue-Based Financing (RBF) being offered by Levenue. This option represents a significant shift from traditional financing methods, offering unique advantages for recurring revenue businesses in need of capital.
A standout feature of RBF for company funding is it has no personal guarantee requirement. Traditional bank loans often necessitate collateral in the form of personal assets, tying the entrepreneur’s personal financial security to the business’s performance. RBF, on the other hand, removes this requirement, safeguarding business owners' personal assets and providing a sense of security for those wary of blending personal and business finances. Also RBF values your recurring revenues which bank loans struggle to do.
Moreover, RBF allows business owners to retain full equity in their company. This is in stark contrast to venture capital funding, which typically involves trading a share of business ownership for financial investment. RBF respects the owner's autonomy and control, eliminating the need to give up any portion of the business’s equity. This is particularly beneficial for entrepreneurs who aim to maintain complete control over their business’s direction and decisions, but still require company funding.
Our story in numbers
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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
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Frequent FAQ's
What data sources do I have to connect?
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/churn rate of the underlying subscriptions, and the cash burn rate.
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.
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What kind of revenues can I trade?
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.
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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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