Uncapped, Europe’s first revenue-based finance provider, has set out to help European founders raise working capital without giving up control of their business or going deep into debt. Based in London with an office in Warsaw, the new financing firm has raised a £10 million seed round from White Star Capital, Global Founders Capital, and Seedcamp.
Uncapped will provide growth financing, ranging between £10,000 and £1 million without credit checks, personal guarantees, warrants, equity, or interest. Financing is repaid at a flat percentage of 6 percent, and repayment installments are based on a small percentage of revenue. So if the business hits a slower phase or the market slumps, the company and founders won’t be in such a tight squeeze.
Co-founder Piotr Pisarz explained the firm’s origin: “Having spent a lot of my career in venture capital, I’ve always been shocked at just how little equity founders end up with. Current statistics show that at exit the founder will likely own less than 15% of their business. Equity is the most expensive way to fund a company’s growth, it takes a long time to raise, and can mean founders end up losing control of their companies. With European companies monetising sooner than ever, we know that founders deserve a more creative and affordable solution.”
The new firm has modernized several parts of the typical financing process. Casting aside traditional pitch decks, Uncapped’s technology connects to a company’s existing marketing and sales accounts, such as Google Ads or Stripe, to make quick, data-based decisions about whether to partner up. Funds will be made available within days, under terms and conditions that are written in plain language.
Starting today, the new model is available to European businesses who take online payments and have at least nine months trading history. Uncapped believes their service is particularly relevant for sectors such as e-Commerce, SaaS, direct-to-consumer, gaming, and app development.
Co-founder and serial entrepreneur Asher Ismail commented: “As a founder, I’ve raised money from angel investors, VCs, crowdfunding and banks, but was struck by the lack of a revenue-based solution in Europe. At Uncapped, we want to bring fundraising into the modern age with the easiest and fastest way to get funded. I don’t want another founder to have to pay compounding interest, risk losing their home, or give up more equity in their company than they should. Europe’s entrepreneurs need access to more innovative funding models and we’re committed to helping founders win by pioneering a fair and transparent approach at Uncapped.”
Christopher Priebe, Partner at Global Founders Capital, said: “There’s a clear requirement in the European market for a new way to fund fast growing businesses. Uncapped’s solution is ideally placed for when venture capital and traditional debt aren’t appropriate. We anticipate that Uncapped will be used by thousands of growth businesses right across Europe and look forward to following the demand for this new innovative model.”