Breda, the Netherlands-based Levenue, a revenue-based financing market, introduced that it has secured €8M in Collection A funding from Truffle Capital, with participation from Freshmen Fund.
Levenue is the primary flagship funding of the Truffles’ “Fintech Scale-Ups Fund” that may put money into as much as 15 high-growth Fintech scale-ups throughout Europe over the subsequent few years.
Along with the funding, Truffle Capital may also provide its deep fintech experience and community to help the Dutch firm because it scales its operations throughout the European Union, together with launching in France in Q1 2024 and because it accelerates its product improvement.
Acquired Cake
In addition to funding, Levenue additionally introduced the acquisition of Cake, a Belgian firm identified for its open banking and information enrichment expertise to enhance the underwriting course of.
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By enriching each line of an organization’s banking information, with the purpose of constructing a reality-based duplicate of its P&L, Levenue will be capable of create extra correct threat profiles and provide sooner financing choices.
Davy Kestens, CEO of Cake says, “Each Cake and Levenue’s mission has all the time been about bringing clear information options to the world. At this time, this mission has change into a lot greater than both of us had ever imagined once we initially began this journey. Difficult the best way corporations get financed, analysed, and valued is a purpose each of our groups are excited to rethink and rebuild.”
Final 12 months, Levenue acquired Requr for an undisclosed charge to capitalise on the rising recognition of Income-Based mostly-Financing (RBF).
Levenue: Income-based financing market
Based by Benjamin Rieder and Zahra Alubudi, Levenue is a revenue-based financing market that goals to create a extra clear mannequin for connecting entrepreneurs and traders.
Not like conventional financing strategies the place founders have to supply shares and lose management over their enterprise, Levenue presents an alternate through the use of the projected money move from current subscriptions as collateral for financing.
Since its launch in 2021, Levenue’s revenue-based financing market has enabled traders to deploy over €300M to subscription-based corporations.
Levenue says that founders can get pleasure from a number of advantages by revenue-based financing.
Probably the most important benefits is the velocity of financing, which requires solely 48 hours to evaluate corporations for funding.
As soon as authorised, funds are usually acquired inside three days. The underwriting choices are primarily based solely on qualitative information, together with income progress and accounting information, thus eliminating any potential bias within the monetary evaluation course of.
Levenue at the moment operates profitably in 12 nations throughout Europe and the UK. It consists of Eire, the Netherlands, Belgium, Luxembourg, Germany, Switzerland, Denmark, Sweden, Norway, Austria and Poland.
The Dutch platform has grown its staff by over 200 per cent in 12 months whereas constructing AI and machine studying into its underwriting options to quickly scale operations with most capital effectivity.
Benjamin Rieder, CEO and co-founder at Levenue says, “We now have established Levenue as a platform the place entrepreneurs and traders can join, fostering the expansion of progressive subscription-based companies. Having facilitated over 300 million EUR in financing in simply two years, we’ve confirmed that there’s a important demand for such a market on each side.”
“The acquisition of Cake was pushed by our steady dedication to enhancing our choices and bettering transparency for our customers,” he provides.
The investor
Truffle Capital is an unbiased European enterprise capital agency specialising in disruptive applied sciences within the IT (Fintech and Insurtech) and Life Sciences (Medtech and Biotech) sectors.
The VC manages belongings of €500M, has raised greater than €1.1B since its creation, and has supported greater than 120 corporations within the life sciences and digital applied sciences sectors.
Patrick lord, Senior Associate of the Truffle Capital Fintech observe says, “Founders of subscription-based SMEs want new options to gasoline their progress. The complexity, founder distraction, and sheer effort and time wanted to finance corporations through conventional means can hurt the enterprise, and generally kill it. We consider strongly in Levenue’s mission to make it as easy, clear, and quick as doable for founders to leverage their major worth driver, their subscription volumes, to speed up the expansion of their corporations in essentially the most agile and painless approach doable.”
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