Amsterdam-based growth funding platform Requr has raised €5 million. Specifically targeting SaaS operators, the startup alleviates the cash flow headache for scaleups and provides up front capital without dilution.
While there’s no definitive number provided for just how much capital Requr is willing to provide, the amount is based on a startups’ annual value of monthly subscriptions. The bare minimum requirement for a seat at the table is a monthly recurring revenue stream of €20,000.
From the financier's perspective, the secret sauce at Requr lies in its proprietary algorithm that calculates a SaaS company’s risk profile. Based on this profile, and associated risk analysis, investors can expect to see a return anywhere between 2 to 10 percent.
CEO and co-founder Tom van Wees comments, “As an entrepreneur, you have to invest a lot -- in key talents, in the sales and marketing engine, and also in your product -- before full turnover is realized. To have cash available sooner, some SaaS companies offer up to 30 percent discount to customers who pay their subscription fees in advance. Requr's financing model largely solves this cash flow problem.”
The firm is initially targeting SaaS companies in continental Europe, with a major push into the Scandinavian market firmly inked on the roadmap.
The €5 million raise was left unattributed, only noting that it arrived, “from a group of experienced investors.”
Requr isn't alone in the space, as just this time last month we reported on the €13.8 million raise from Madrid's Ritmo. The competitor offers up to €3 million in non-dilutive growth capital, with approval in less than 24 hours.