Private credit is the market darling of the moment, with investors flocking into the market attracted by stable risk adjusted returns and relative security when compared to traditional equity instruments. However, the cost of capital for SaaS businesses is punishing, oftentimes compounding the issues which ventures in need of funding face. The burden of servicing venture debt can often be ruinous. Punishing covenants in the event of late payment can result in the very equity dilution which borrowers are trying to avoid. Levenue solves this problem with fixed monthly payments over 12-month terms, directly tied to a business’ existing revenue.
Eligible subscription-based companies can auction up to 45% of their annual recurring revenues, with auctioned revenue discounts ranging from 5% to 17% since inception. Levenue’s rigorous commitment to risk mitigation and investor protection has resulted in an impressive 0% default rate. The ultimate cost of capital and received funds are dictated by investor demand and factors such as revenue longevity, runway length, burn rate, churn rate, and the overall risk profile of the company. This divergent model engenders a competitive and dynamic marketplace that catalyses favourable pricing and substantially diminishes capital-raising costs by 30% – 50% compared to “on-balance” providers.
€650m of investment facilitated. 500+ companies funded. 17 European jurisdictions penetrated. An average 22% IRR. Zero defaults since the first transaction in 2021. A thriving base of 300+ accredited investors. Broad scope of business verticals financed across SaaS, FMCG, Retail, Health and Wellbeing to name just a few. A deeply experienced founder with a background in logistics and VC. An emergent asset class set to grow to €43bn by 2027.
Get in touch if you want to learn more, either as an investor, or as a company looking to raise non-dilutive capital.