Uncapped, Europe’s first revenue-based finance provider, has launched to help founders raise working capital without giving up control of their business.
Backed by Global Founders Capital, White Star Capital and Seedcamp, Uncapped has raised £10m to provide growth finance without credit checks, personal guarantees, warrants, equity, or interest.
Headquartered in London with offices in Warsaw, Uncapped is pioneering a new approach to business finance, allowing founders to raise crucial working capital between £10k and £1m at a flat fee of 6%.
Business revenues can fluctuate from month to month, particularly during early and growth stages. To help manage this, Uncapped has a revenue-based finance model where businesses only repay when they generate sales, so if the market slows down or sales are lower than projected, the company and founders won’t be caught out.
Uncapped doesn’t require a traditional business plan and pitch deck. Instead, its technology connects to the companies’ existing marketing and sales accounts such as Google Ads and Stripe to make fast, data-driven decisions.
Unlike legacy banks or more traditional sources of funding, Uncapped’s model allows businesses to access funds within days. It is particularly relevant for companies in sectors including ecommerce, SaaS, direct-to-consumer, gaming and app development.
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The company was founded by serial entrepreneur, Asher Ismail, and venture capital investor, Piotr Pisarz, who were frustrated by the limited funding options available to European entrepreneurs.
Asher Ismail, co-founder 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. 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.”
Piotr Pisarz, co-founder, commented: “Current statistics show that at exit the founder will likely own less than 15% of their business.
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“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.’’
Christopher Priebe, Partner at Global Founders Capital remarked “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.”