Dutch revenue-based financing marketplace Levenue raises €8M; acquires Belgian startup Cake 

Picture credit: Levenue

Breda, the Netherlands-based Levenue, a revenue-based financing market, introduced that it has secured €8M in Sequence A funding from Truffle Capital, with participation from Freshmen Fund.

Levenue is the primary flagship funding of the Truffles’ “Fintech Scale-Ups Fund” that can spend money on as much as 15 high-growth Fintech scale-ups throughout Europe over the subsequent few years. 

Along with the funding, Truffle Capital will even supply its deep fintech experience and community to assist 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 

Apart from funding, Levenue additionally introduced the acquisition of Cake, a Belgian firm recognized for its open banking and knowledge enrichment expertise to enhance the underwriting course of. 

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By enriching each line of an organization’s banking knowledge, with the objective of constructing a reality-based duplicate of its P&L, Levenue will be capable to create extra correct danger profiles and supply quicker financing selections.   

Davy Kestens, CEO of Cake says, “Each Cake and Levenue’s mission has at all times been about bringing clear knowledge options to the world. At this time, this mission has grow to be a lot larger than both of us had ever imagined once we initially began this journey. Difficult the way in which firms get financed, analysed, and valued is a objective each of our groups are excited to rethink and rebuild.” 

Final yr, Levenue acquired Requr for an undisclosed payment to capitalise on the rising reputation of Income-Primarily based-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 buyers. 

In contrast to conventional financing strategies the place founders have to supply shares and lose management over their enterprise, Levenue affords an alternate by utilizing the projected money movement from present subscriptions as collateral for financing. 

Since its launch in 2021, Levenue’s revenue-based financing market has enabled buyers to deploy over €300M to subscription-based firms. 

Levenue says that founders can take pleasure in a number of advantages by way of revenue-based financing. 

One of the crucial important benefits is the pace of financing, which requires solely 48 hours to evaluate firms for funding. 

As soon as authorised, funds are sometimes obtained inside three days. The underwriting selections are based mostly solely on qualitative knowledge, together with income progress and accounting knowledge, 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 have now established Levenue as a platform the place entrepreneurs and buyers can join, fostering the expansion of revolutionary 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 enhancing transparency for our customers,” he provides.

The investor

Truffle Capital is an impartial 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 property of €500M, has raised greater than €1.1B since its creation, and has supported greater than 120 firms within the life sciences and digital applied sciences sectors.

Patrick lord, Senior Companion of the Truffle Capital Fintech follow says, “Founders of subscription-based SMEs want new options to gas their progress. The complexity, founder distraction, and sheer effort and time wanted to finance firms through conventional means can hurt the enterprise, and generally kill it. We imagine strongly in Levenue’s mission to make it as easy, clear, and quick as attainable for founders to leverage their major worth driver, their subscription volumes, to speed up the expansion of their firms in essentially the most agile and painless manner attainable.”