1/7/2024 0 Comments 1password 100m accel 2b![]() The firm aims to finance underserved and underrepresented founders with a less dilutive form of capital. It’s the case of Founders First Capital Partners, a revenue-based investment firm which last month raised a new $100m for a new debt fund. Next to new firms and models emerging into the space, existing players are also getting momentum. Indie.vc deserves a full profile in Mereo, so stay tuned. The result? More than 2,000 people applied to be a scout to their investment program, showing the strong interest in alternative venture financing. Four years later, when the firm is about to launch its latest batch, Roberts decided to create scout program where selected scouts can refer relevant companies to the program. Bryce Roberts started Indie.vc in 2015 out of its classic VC firm Oatv. Meanwhile in the USA, Indie.vc opened the application for its “ 12 month program designed to fund and support founders on a path to profitability ”. Like Clearbanc, Uncapped investment seats between capital and debt, allowing entrepreneurs to fund operations at a cheaper cost than capital while requesting less guarantees than debt. It’s being pitched as a smart alternative for growing companies that don’t want to give away equity in return for capital to help grow. Uncapped says it will enable founders to access working capital between £10,000 and £1 million for a flat fee of 6%. Yesterday, London-based Uncapped announced a GBP 10m fund with a similar model: Getting momentumĮarlier this year, I mentioned Canada-based Clearbanc when the firm launched its revenue-based financing offering to (mainly) eCommerce entrepreneurs. Today, the market is aware that only a few companies are fitting the venture model and that there is a massive need for alternative funding models which can finance tech companies that don’t fit the VC mould. While venture capital is great to build multi-billion dollar companies, only 1% of VC-backed companies actually reach the $1B valuation. ![]() As being profitable is now en vogue, I had to remember why I cared about alternative venture funding in the first place: As a result, everyone and their mother quickly changed their pitch deck: the time for growth-at-all-costs was over, now it is all about being a profitable company. WeWork, the $47b co-working space, exploded on its way to IPO, showing the fundamental difference between public and private market investors. Since Mereo’s birth, things have started to change. Photo by Alexander Schimmeck on Unsplash For context A few courageous investors were promoting alternative financing models to venture capital, but they did not exactly achieve product-market-fit - until recently. It does not store any personal data.When I started writing this newsletter in March 2019, alternative venture funding wasn’t a real thing. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. The cookie is used to store the user consent for the cookies in the category "Performance". This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. The cookies is used to store the user consent for the cookies in the category "Necessary". The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". The cookie is used to store the user consent for the cookies in the category "Analytics". These cookies ensure basic functionalities and security features of the website, anonymously. Necessary cookies are absolutely essential for the website to function properly.
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