Posted on April 29, 2020 by staff

‘No equity’ VC pledges £20m funding for online firms

A new revenue finance company has pledged £20m of funding for online business by the end of 2020.

Just Capital provides businesses with up to £1m of funding to help them rapidly scale revenues, via repeatable channels like paid marketing and inventory, without relinquishing equity.

Unlike equity raises or traditional loans, and in contrast to lengthy pitching and applications, Just Capital says it uses a speedy, self-serve platform for businesses to request funding.

Companies link up their online payment processors and ad tools, such as Stripe, Shopify, Facebook and Open Banking, and Just Capital uses that data to build a bespoke offer and deal for each business.

The process can be completed in minutes and a business can go from application to money in account in 48 hours.

Founders don’t have to give up equity, give a personal guarantee or pay interest. A small flat fee is charged on the capital and paid back in the revenue share over six months.

The team behind the revenue finance platform is led by second-time founder and CEO Daniel Lipinski, and features talent from across the UK lending space.

Just Capital’s head of risk is former head of loans at Market Invoice, while engineering talent is drawn from Funding Circle.

Founder and CEO Daniel Lipinski said: “As a second time founder, I know the frustration of giving away equity in order to grow, when all I needed was cash for marketing expenses and inventory.

“For entrepreneurs, raising money through traditional routes becomes a full-time job. It’s a game we all play, but it’s not beneficial to founders or VC partners. Just Capital was born out of this frustration.

“With our platform, funding is simple, quick and easy and founders can focus on their real job: growing their business.

“Just Capital is the funding model built for founders. We can fund your business growth continuously, while you retain all of your equity and without risking any personal assets. We only get repaid when you do well, so our only interest is maximising you. We believe we can scale any business and take them from £50k of funding to £1m, every six months.

“We’re in a fortunate position to be able to deploy money in this environment at this level. Everyone else is pulling back or shoring up their portfolio. We’re putting more money on the table and we’re ready to go.”

Mark Pearson, founder of Fuel Ventures, added: “Since we launched in 2014, Fuel Ventures has been committed to investing in companies that we believe have exceptional growth potential, and this £20 million fund Just Capital has at its disposal has given us a fresh opportunity to support a wide variety of lucrative early-stage companies.

“As with all the businesses we invest in, Just Capital has huge growth potential of its own. It’s an innovative business which allows other businesses to grow fast, without having to wait and worry about whether they will close future VC funding rounds.

“It’s much-needed capital that has a huge target audience. I’m excited to see how the Just Capital team develops the business over the next 12 months and how it supports its clients through the challenges they’ll inevitably face as they grow.”