Before revenue-based financing, founders had to pick which aspect of their business they would sacrifice in order to gain investment.
Now, they can have it all.
Yesterday we sat down with Leonardo from Uncappped, Europe’s largest ecommerce investor, to discuss the benefits of revenue-based financing (RBF) for startups and SMEs.
First things first – a huge thanks to everyone who attended! We hope you came away with some value and information that can serve you in the future.
If you missed out, not to worry! This blog will give you an overview of the webinar’s key takeaways, as well as a recording of the live session for you watch on-demand.
So, what is revenue-based financing? And how does it work?
Uncapped developed the revenue-based financing model from the belief that founders shouldn’t have to give up ownership or pay interest to fund growth.
That’s why they offer the solution - interest & equity-free investments ranging from £10k - £5m. This funding method is fast-moving, to keep up with the pace of your business growth.
You can apply on Uncapped’s website in minutes, with a loan decision made in just 24 hours!
In exchange for their loans, Uncapped only charge a 6% flat fee. That’s no equity, interest, warrants, or personal guarantees.
What’s more, repayments are made by way of a revenue share agreement, meaning repayments are determined as a percentage of sales. If revenues slow, so will repayments!
Who can use revenue-based financing?
To qualify for revenue-based financing with Uncapped, businesses must have:
· An online model; such as Ecommerce, D2C, Subscription, Mobile App or SaaS;
· A minimum of 6 months of trading under their belt;
· A proven track record of growth and sales;
· At least £10k in monthly revenue
Uncapped Success Stories
The best way to illustrate how revenue-based financing can be used to scale your business is to take a look at the real-life success stories.
Leonardo shared the journeys of three different companies funded by Uncapped. Let’s walk through the incredible progress they made.
Fashion brand, Hedoine, were loaned £150k from Uncapped. This RBF investment was used to propel their marketing campaign and returned the company 1106% revenue growth, and a 227% ROI.
"Uncapped's revenue share model makes it a much better way to grow in less certain times. Their flexible repayments were a big comfort during the pandemic." - Alex, Co-founder of Hedione.
Uncapped loaned London’s top plant shop, The Stem, £50k worth of RBF. With that capital again boosting their marketing spend, The Stem achieved a whopping 300% revenue growth - giving them an ROI of 494%.
When the above companies approached Uncapped, they were progressing through the bootstrapping phase and looking to raise funds without pursuing traditional routes of investment.
"The freedom to do 3x our ad budget without having to do a VC round has been transformational. The process was very easy." - James, Founder of The Stem.
A different story is that of Marshmallow, the online car insurance company, who came to Uncapped with greater financial backing and a history of VC funding.
Whilst pursuing a significant raise, Marshmallow realised that RBF might offer a more cost-efficient alternative to handing over equity. After receiving a loan of £750k from Uncapped, Marshmallow experienced £59% revenue growth, and a staggering 1059% ROI!
Exceeding their expectations (and proving their gut instinct right), Uncapped saved Marshmallow £7.5M in equity.
"Getting funded with Uncapped is quick and easy. It saved us millions in dilution." - Oliver, Co-founder of Marshmallow
These three companies came to Uncapped during totally different phases of growth. Unlike other fundraising options, this shows that RBF is an inclusive and accessible source of capital.
Their mutual successes compliment the data-driven RBF model as a friendlier approach to funding.
Uncapped are giving up to £50k to Claim Capital clients (fee-free)!
We're thrilled to announce that, until the end of November, Uncapped are offering Claim Capital clients a fee-free loan of up to £50k!
That's right - in light of our new partnership, Uncapped have lifted their flat repayment fee for our client base only.
As long as your business features an online model, has been trading for 6+ months, and brings in at least £10k in monthly revenue - this funding can be yours!
If you're not yet a client of Claim Capital, you're missing out on this incredible growth opportunity.
Luckily, there's still time to join us and get involved.
If you engage in our renowned R&D Tax Credit service before the end of the month, you'll be included!
Don't worry - our fundraising series doesn't end here!
On the 8th December at 1pm, we'll be joined by the UK's leading crowdfunding platform, Crowdcube, to bring you a webinar explaining the do's and dont's of crowdfunding.
The new year could be the perfect time to kick-off a winning crowdfunding campaign. Save your seat by registering here.
Until we meet again!