How the financing market is adjusting after the rest?

After the market breakdown and the remaining doubt about valuing private and public stocks, many asset managers have sidelined themselves from participating too much in the market. Hedge funds are still mostly holding cash, and VCs are investing much slower than before.

All in all, VC funding in May fell 14% month over month from $45 billion in April. It’s down 20% from $49 billion a year earlier in May 2021. The largest pullback was in late-stage venture capital, which fell from 2021 monthly averages by close to 40%.

But at Levenue, we start getting the feeling that our Buy Side clients are beginning to switch from being on the sidelines to actively pursuing new alternative ways to generate some alpha. Although by taking a less long-term risk, people are willing to make their capital work again.

For the Levenue marketplace, this means a new and more significant influx of capital looking for steady short-term, fixed income like investments, which positively affects our clients on the other side of the marketplace.

Early-stage growth companies have concluded there's less interest from equity investors to finance their growth, so they've all been looking for alternatives to invest in their continuous quest for innovation. Revenue-based financing has become one of this company's most exciting and fastest-growing financing alternatives.

Marvellous to be right in the middle of how a new market is being shaped and becomes an alternative for a model that just broke down.

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