Tapline, a digital finance platform allowing SaaS companies to trade their future revenues for upfront and non-dilutive cash, has secured pre-seed funding of €31.7 million in equity and debt.
The Berlin-based outfit has raised €1.7 million in an equity round led by the Czech VC firm V-Sharp Venture Studio, alongside Antler, Black Pearls VC, 365 fintech, Depo Ventures, Impetus Capital and several angels. Meanwhile, Fasanara Capital is providing €30 million in debt funding.
Following a similar business model to US player Capchase, Tapline is promising to help firms navigate the current unstable economic environment without having to rely on venture funding.
The startup is focusing directly on the SaaS vertical across both B2B and B2C business models - which offer high levels of predictability in recurring revenues - in Germany, Austria, Switzerland and the Central Eastern Europe region.
Tapline has built a platform that allows for swift onboarding, provides clients with a proprietary tech-enabled credit score, and a free financial dashboard to monitor various metrics of users' business daily.
Companies with as little as €8000 monthly recurring revenue can trade up to 60% of their ARR into instant, non-dilutive capital. Tapline offers startups six or 12 months of upfront cash at a discount against the future value of their revenues.
Dean Hastie, CEO, Tapline, says: "We listened to the fundraising pain points in the market, and it was clear that an alternative financing solution, that is transparent, easy to understand and offers competitive prices with no hidden costs was required.
"Ultimately, we can provide a quick, transparent, and non-dilutive capital solution to founders, so they can continue to focus on what they do best: building innovative businesses."