Uncapped is disrupting startup finance. We got an exclusive look at the pitch deck it used to raise a fresh $80 million from Spotify investor Lakestar.
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- London-based fintech startup Uncapped offers capital to other startup businesses, but without taking an equity share.
- The startup has just raised $80 million in a combination of equity and debt from VC fund Lakestar.
Uncapped, one of a crop of firms providing funding to startups without taking equity, has raised a fresh $80 million.
The UK fintech raised the debt and equity funding from Spotify backer Lakestar and will use it to scale up into banking.
Founded in 2019, Uncapped provides financing for startups at rates as low as 6%. It integrates into a company’s marketing and finance platforms, and payments are made in accordance with revenue.
Revenue-based financing has grown over the last couple of years as an alternative to venture capital, with Uncapped’s Canadian peer Clearco recently attaining a $2 billion valuation and expanding to the UK in 2020. Dublin’s Wayflyer and Berlin’s Uplift1 offer similar services in Europe.
For many companies, it’s preferable to have quicker, more affordable capital to help with ad spend or buying inventory. It can be less efficient to swap funding for equity, and loans can be accessed faster and be cheaper than VC cash.
Uncapped has been growing, according to founder Piotr Pisarz.
“Our business has encountered tremendous growth since our last funding,” Pisarz told Insider. “We needed to hire more people and get more capital to grow the company.”
Asher Ismail, his cofounder, added that “several funds” had competed to back Uncapped.
The firm initially offered financing of up to £2 million ($2.8 million), and will expand that to £5 million ($7 million) as well as expanding into banking services.
“When we started out we were a pure lending business,” Pisarz said. “Through speaking to customers we realized we have the opportunity to help them more through offering automation, specific banking services, and other tools to make building their business more efficient.”
Check out Uncapped’s pitch deck: