Venture Capital Alternative with Revenue Based Finance
Extend your runway and maintain control with revenue based finance.
Companies funded
500+
Trades facilitated
€300m
Initial trade
2021
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.
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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