Levenue’s Landmark Series A Funding and Strategic Acquisition of Cake
Levenue, a leading revenue-based financing marketplace in Europe, has marked a significant milestone in its growth journey by raising €8 million in Series A funding. This strategic move, complemented by the acquisition of Belgium-based tech startup Cake, signifies Levenue’s ambition to scale operations across Europe and redefine subscription-based company financing.
Levenue co-founders Benjamin Rieder and Zahra Alubudi
Series A Funding: A Step Towards European Expansion
This funding round, led by French venture capital firm Truffle Capital and supported by Belgian investment firm Freshmen Fund, empowers Levenue to enhance its product development and prepare for its upcoming launch in France in early 2024. Notably, Truffle Capital had previously led Cake’s €4.6 million seed funding round in January 2022.
The Innovative Business Model of Levenue
Levenue, established in 2021, offers a unique marketplace for subscription-based businesses. It allows these companies to use the forecasted cash flow of their existing subscriptions as collateral for non-dilutive revenue-based financing. This model preserves the founders’ control over their businesses, avoiding the dilution of ownership often associated with traditional capital offerings.
Rapid and Unbiased Financing
The company prides itself on the speed and impartiality of its financing process. It takes only 48 hours to assess funding eligibility for companies, with funds typically received within three days. The underwriting decisions are based exclusively on qualitative data, such as revenue growth and accounting data, ensuring an unbiased financial assessment.
Acquisition of Cake: Enhancing Underwriting Efficiency
Levenue’s acquisition of Cake, a company specializing in open banking and data enrichment technology, aims to improve the efficiency and accuracy of its underwriting process. By leveraging Cake’s technology, Levenue can create more accurate risk profiles and offer faster financing decisions. This acquisition is a testament to Levenue’s commitment to enhancing its offerings and improving transparency for its users.
Impact and Vision
Operating profitably in 12 European countries, Levenue has grown its team by over 200% in 12 months. The company is integrating artificial intelligence and machine learning into its solutions to scale operations efficiently. With over €300 million facilitated in financing since its inception, Levenue has established itself as a significant player in the European market.
Levenue’s Series A funding and the acquisition of Cake mark a pivotal moment in its journey to become a leader in revenue-based financing in Europe. This development not only strengthens Levenue’s market position but also highlights the growing demand for innovative and founder-friendly financing solutions in the subscription-based business sector.
