Tapline has collected a total of €31.7 million in equity and debt in its pre-seeding round. The majority of the funding came from Fasanara Capital. It provided €30 million ($33.5 million) in debt to Tapline. V-Sharp Venture Studio and many other venture capital investors funded the remaining €1.7 million ($1.8 million).
Tapline is a financing platform that helps small businesses to gather SaaS funding for their business. It is a fast-emerging company founded in 2021 that deals in the DACH (Austria, Germany, and Switzerland) and Central Eastern Europe markets.
The company has a new model of financing startups; instead of gaining capital against equity Tapline provides the capital for a share of future revenue. It allows startups to borrow against their future revenue cash flow streams.
According to Dean Hastie, the CEO of Tapline, the market requires a transparent financing solution that allows startups to easily acquire capital and offers competitive prices with no hidden costs. It will help the small business grow and innovate without any fear of losing equity at every step.
There is no facility to aid small businesses in raising funds without trading their equities. Many SaaS businesses that have a good product and available customer base aren’t able to make progress due to this market barrier, says V-Sharp Venture Studio.
Managing partner Matej Zabadal added that Tapline perfectly fills the gap in the market and provides needed support to such small businesses. Investors expect growth from the revenue financing industry.
James Hickson, the CEO of Bloom, a finance-providing company, said that the relative predictability of SaaS business revenue makes them a perfect candidate for the recurring revenue lending model.
According to certain reports, almost 75% of the clients of finance providers are subscription-based businesses. It also suggests that the revenue-based finance model for businesses can project significant growth in the coming years.