UK fintech Outfund, which changes the way small businesses access capital, has closed £115 million Series A round of equity capital and debt amount. The financing round was led by Force Over Mass, PostFinance, 1818 Venture Capital (invested in MOONHUB and Laka) and Tribe Capital.
Funds utilisation
Outfund plans to invest over £500 million of lending to over 5,000 businesses in the next 12 months and will increase its lending limit to £10 million per company. It will also use the funds to lend more capital to more businesses. Furthermore, the startup plans to make investments into new products, including working capital, revolving credit, and in team growth.
The investment will support the company’s rapid global growth as it provides a faster, fairer and more affordable way for SMEs to raise growth capital across the globe. Also, Outfund will now be the largest revenue-based finance provider in the UK, Spain, and Australia.
Daniel Lipinski, founder and CEO of Outfund, said, “Our ambition is for Outfund to be the place to go to grow your business, without compromising your equity or wasting time fundraising. This is why we have spent time developing a way to make the process of securing money for growth easier, fairer and, most importantly, faster. Our approach has been warmly received by the founders and directors so far, and now we’re looking at how we can open this up to more businesses and continue to be part of their journey to success for a long time.”
Mark Pearson, founder and managing partner of Fuel Ventures, added, “Daniel and the team are pivoting the model of business funding, rebalancing the scales so that business owners don’t lose out financially while getting the capital they need to supercharge their online business’s growth. At Fuel we work with the most ambitious entrepreneurs building market leading companies. Outfund is a perfect example of this – a strong, passionate founding team creating a game-changing venture that is now a leader in its field.”
Filip Coen, Partner at Force Over Mass, said: “Outfund provides SMEs with the short-term financing options they deserve: fast, flexible and on good terms. A modern, digital-first credit provider with automated credit and risk scoring, managed by an exceptional team. We are very excited to join Daniel and Outfund on the journey ahead”.
Funds business loans and capital!
Founded in 2020 by Daniel Lipinski in London, Outfund is an alternative investment platform focused on venture capital funds and bank loans. It enables users to invest in e-commerce, SaaS companies, retail companies, and more. Also, it provides loans to businesses for working capital or inventory.
The fintech startup can deploy between £10,000 and £10 million of funding, and is available to businesses that take online payments. These businesses should have a minimum of £10,000 monthly turnover, and have been trading for at least six months.
Unlike traditional business loans, Outfund ensures the time taken to repay is based on each businesses’s circumstances, with an agreed revenue share creating flexibility for founders. Outfund’s revenue-share percentages are set to ensure each business maintains a healthy cash flow in its day-to-day operations.
Outfund’s technology takes the bias out of lending and improves financing terms, with analysis based solely on a business’ revenues and performance. What’s interesting is that 20% of its portfolio comprises female founders.
