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Uncapped picks up another £26M to offer revenue-based finance to European entrepreneurs

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Uncapped, the London-headquartered and Warsaw-based startup that offers “revenue-based” finance to European businesses so that founders don’t have to give up equity stipulated by venture capital, has raised £26 million in new funding.

The round was led by Mouro Capital (the recently spun-out fund previously called Santander InnoVentures), with participation from existing investors Global Founders Capital, Seedcamp and White Star Capital. Various angel investors have also backed Uncapped, including Taavet Hinrikus (TransferWise), Christian Faes (LendInvest), David Nolan & Kevin Glynn (Butternut Box) and Carlos Gonzalez-Cadenas (GoCardless).

Founded last year by “serial entrepreneur” Asher Ismail (who was most recently CEO of Midrive) and former VC Piotr Pisarz, Uncapped has set out to use various marketing, sales and accounting data to be able to offer finance for young businesses based on their current (and projected) revenue. It was born out of the pair’s own frustrations with the limited funding options available to European entrepreneurs, namely equity-based or traditional debt financing.

Framed as a third option, Uncapped provides what it terms “growth finance” in return for a flat fee as low as 6%. Businesses only repay the capital as they generate revenue, “with no set repayment date and no compounding interest, equity or personal guarantees”.

It was originally pitched as being particularly suited to revenue-generating companies wishing to invest in online marketing to grow sales more quickly, but has since widened its target to other scenarios.

“When we launched, we knew selling equity to buy Facebook and Google ads was a bad deal for founders,” says Ismail. “So this is where we focused and mainly funded companies for advertising and inventory. Since then we’ve set out to help companies get funding for any purpose including launching a new product, expanding internationally, or growing the team”.

Post-launch and through refining its technology, Uncapped has sped up the time it takes to make a lending decision from three days to a few hours. Once financing has been agreed, the startup can also now issue Visa cards so founders can start spending funds immediately.

“With this new investment round, we’ve also started funding earlier-stage companies with only six months of revenue history (previously our minimum was nine months),” says Ismail. “We’ve also doubled the amount we can advance at one time to £2 million. So now more companies can access funding for more use cases, and faster”.

Asked how the coronavirus pandemic has affected the way Uncapped evaluates risk, where past revenue performance may not be a reliable indicator going forward, Pisarz says a recession in some ways is the best time to build a credit model, “as everyone else’s models are now irrelevant”.

“Whereas other online lenders depend on personal guarantees and the founder’s own credit history as the main drivers of their risk models, we use live data about the company’s actual trading to make our decisions,” he tells me. “When the pandemic hit, we were able to access the real-time data about how our portfolio was performing, make quick decisions and continue to issue credit, where others were forced to pull back. Our number of investments and the returns have since grown exponentially”.

To boot, Pisarz says Uncapped has continued to upgrade its underwriting technology, and having now seen how different business models adjust to more challenging times, it has built more confidence in its underwriting.

“Unlike a VC, we need our whole portfolio to succeed, not just a few that make up for the losses of the others. So we need to have a lot of certainty in our decision making,” he concedes.

“Equity was the most expensive way to fund digital ad spend and repeatable growth, and as fundraising has become even harder due to the pandemic, it has only become more expensive,” adds Ismail. “So our sweet spot continues to be direct-to-consumer products and other fast-monetising startups that generate between £10,000-£2 million of monthly sales, have healthy unit economics and want to avoid diluting their founders and existing investors.

“For businesses that are still in the R&D stage or need more time to get to market, venture is still a good solution, but for businesses who are already live, have predictable customer acquisition costs, and repeatable growth, we know we are a better option”.

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Charge Your Phone Wirelessly With 50% off a Multifunctional LED Lamp

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Best Tech DealsBest Tech DealsThe best tech deals from around the web, updated daily.

White Wireless Charge Lamp | $18 | Amazon | Clip coupon + code ABC88699
Black Wireless Charger Lamp | $20 | Amazon | Promo code ABC88699

When you’re ready to turn in for the night, you don’t want to forget to charge your phone— especially if your mobile device doubles as your alarm clock.

With this wireless charger lamp, you can make this crucial step of your nightly routine even easier by just setting your phone on the wireless charging pad and… well, that’s all there is to it!

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Other functions include multiple lighting modes as well as a sleep timer option for auto shut-off of the light after 30 or 60 minutes.

This lamp can be yours in white for $18 if you clip the coupon on Amazon (it’s below the original $40 price) and add promo code ABC88699 at checkout.

You can snag the black version for $20 using the same code—no coupon though, sorry.

Don’t sleep on this deal! Who knows how long stock or the coupon code will last?

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Keep That Hotdish Hot With 65% Off a Luncia Casserole Carrier, Only $11 With Promo Code

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Best Home DealsBest Home DealsThe best home, kitchen, smart home, and automotive deals from around the web, updated daily.

Luncia Double-Decker Dish Carrier | $11 | Amazon | Promo code SDDU9S7F

It has been a long time since the days we could safely have a potluck or other gatherings, but we have a fantastic deal perfect for once those times return. These double-decker Luncia dish carriers can be had for 65% off when you add promo code SDDU9S7F at checkout and clip the coupon on the site (it’s just below the price). These holders fit 9″x 13″ sized baking dishes.

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That means you can insulate and keep two dishes of food warm for only $11 instead of $30. What’s more, your Luncia carrier will arrive by Christmas if you order today as a Prime member.

Just add promo code SDDU9S7F and clip the 5% off coupon to bring the price down to $11 for the blue or the grey option.

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Grab this offer while it’s still around!


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Conquer Your Pup’s Dander and Fur With $700 Off a Cobalt or Charcoal Bobsweep PetHair Plus Robot Vacuum

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Best Home DealsBest Home DealsThe best home, kitchen, smart home, and automotive deals from around the web, updated daily.

Bobsweep PetHair Plus Robot Vacuum & Mop (Cobalt) | $200 | Best Buy

Bobsweep PetHair Plus Robot Vacuum & Mop (Charcoal) | $200 | Best Buy

Allergies can be bad enough as the seasons change. Don’t let pet hair and dander add to that by vacuuming it up early and often. That chore is easier said than done— unless you have a robot vacuum to do the work for you. This lovely bright cobalt Bobsweep PetHair Plus robot vacuum and mop, only $200 today at Best Buy seems like an ideal option. That’s a whopping $700 off, by the way.

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You can get the same deal for the charcoal version of the robot vac, too. This model is not only specially made for picking up pet hair, it self docks and charges when it’s finished with the work.

It also comes with a mop attachment, so it can take care of those kitchen floors for you as well. Grab it while it’s still available for this fantastic price!

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