While a record €94.9 billion was invested in European startups last year, according to PitchBook data, startups that aren’t expected to deliver the desired returns often struggle to raise capital. As an alternative, revenue-based financing—which is lending secured against future revenue—has become increasingly popular over the past few years in Europe. It is also a good option for founders with predictable revenue streams who don’t want to give up equity.
VCs are also paying more attention to revenue-based financing. Earlier this month, Wayflyer became Ireland’s sixth unicorn, following a $150 million Series B led by DST Global and QED Investors. French provider, Karmen, secured a €22 million seed investment last month, while Berlin-based Re:cap received $111.5 million to officially launch its platform in December.
Investors including XAnge, Otium, Bpifrance, Eurazeo and ISAI took part in Silvr’s latest round, alongside several business angels. Silvr, which was founded in 2020, plans to use the capital to expand access to its platform both in France and internationally and is also planning to create its own debt fund, a trend that is also on the rise globally. Last year a record $55.8 billion was invested across 4,858 debt deals, according to PitchBook data.
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