Levenue, a Dutch revenue-based finance marketplace, has today announced the successful raise of €8 million in a Series A funding round and completion of the acquisition of Belgian fintech Cake.
The capital will be used to scale operations across the European Union, with the company targeting a French market entry in Q1 2024.
Operating in 12 countries across Europe, Levenue’s €8 million Series A funding round was led by Truffle Capital with Freshmen Fund participating.
It’s all in the market(place)
While the revenue-based financing craze of years prior may have fallen out of favour, the difference with Levenue lies in the word ‘marketplace’.
Similar to American competitor Pipe, Levenue has created a marketplace that connects those who are seeking growth capital, more accurately, bridge financing with institutional investors looking to diversify their portfolios. For investors, this offers an opportunity to enhance profitability by investing in qualitative and less risky companies supported by other investors, such as VCs.
According to the company, it’s deployed over €300 million to subscription-based companies since launching in 2021.
Eating the cake
Adding to this model of risk reduction, in combination with today’s announcement of an €8 million Series A funding round, Levenue has completed its acquisition of Belgian fintech Cake (also a Truffle Capital portfolio company).
Founded in 2018 and raising €4.6 million in January 2022, Cake’s usage of open banking and data enrichment technologies builds a real-world replica of a company’s profit and loss figures. The integration of this technology will further enhance Levenue’s underwriting process.
Levenue’s intent to merge with Cake was announced in late August of this year and is the company’s second such transaction, having previously acquired Amsterdam-based RBF firm Requr.
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