EIS/SEIS investment fund Velocity Capital Advisors has announced the launch of a new venture debt provider Juice Ventures, a platform that will be utilizing Modulr’s tech stack.
Juice expects to facilitate fast, short-term revenue-based loans hit. Juice’s lending process bases its decisions on marketing data instead of revenues. For founders, it may offer an alternative to dilutive equity funding.
Reportedly, Juice has secured approval of its application to operate as an EMD (Electronic Money Directive) Agent of Modulr (Modulr FS Limited) in the UK. This will provide acces to Faster Payments and Bacs. Modulr holds an Electronic Money Institution (EMI) licence and is authorised and regulated by the FCA. As a direct participant of the Faster Payments and Bacs schemes, they hold and settle funds at the Bank of England, providing reliability and security for users.
Raj Saxena, CEO and founder of Velocity Capital and Juice Ventures says they are delighted to be partnering with Modulr:
“The relationship is an ideal infrastructure partnership, and has enabled us to offer undiluted lending power, thus allowing businesses to grow at scale without dilution. Marketing is often cited as a digital businesses’ biggest reason for failure – so get it right, and then as an entrepreneur or investor you have a far greater chance of success.”
Kuba Zmuda, Chief Strategy Officer at Modulr comments explains that Juice, powered by Modulr’s infrastructure, will provide businessses with a new way to access credit, one that is ultra-fast and secure.
“Working together means Juice can automate real-time loan disbursements and easy repayment reconciliation, so their customers can focus on achieving their ambitions.”
Juice supports businesses that are early-stage through to series A. The company says it can offer financing at significantly higher levels compared to revenue-based lenders.
Juice Ventures was launched in 2020 and has institutional backing, and states that it is on track to help over 100 UK digital SMEs in the next three years.