Levenue, a revenue-based financing company, has acquired MidFunder, a Zurich-based Fintech that provides financing for companies with recurring revenue. The acquisition marks a strategic move to enhance its Swiss operations.
As entrepreneurs and early-stage investors, Patrick Frei, Founder of MidFunder, and Pascal Schumperli, Co-Founder, identified a common challenge “faced by other founders – the enormous difficulty in securing funding from traditional financial institutions.”
Banks often required personal guarantees, “leading to lengthy waiting periods and eventual rejection. MidFunder was conceived to fill this gap, offering business owners fair and non-dilutive capital, allowing them to focus on growth.”
Initially focused on crowdfunding for SMEs, MidFunder pivoted “to become a revenue-based financing platform for digital businesses.”
This innovative approach has garnered success, “with over CHF 1 million raised during challenging market conditions and a high-performing core team onboard, including individuals with backgrounds in Funding Circle, N26, Wise, Amazon, iwoca, re:cap, and Moss.”
One of MidFunder’s key advantages “is the rapidity of financing.”
The platform assesses companies within 48 hours, and funds “are typically received within three days of being listed on the marketplace. The underwriting process, including accounting data and revenue growth analysis, ensures unbiased financial evaluation.”
Additionally, underwriting decisions are “made partially on the basis of quantitative data, such as accounting data and revenue growth, removing any possibility of prejudice in the financial evaluation.”
Motivated by a shared mission to provide new funding avenues “without dilution for businesses, MidFunder entered into acquisition discussions with Levenue.”
Patrick Frei, Founder of MidFunder, said:
“When we spoke to Levenue, as one of the leading players in the RBF space globally, operating in 16 European markets, having funded over 500+ companies with ~300m in facilitated trade it was clear to us that we share the same mission of providing a new way of funding for businesses without dilution.”
Benjamin Rieder, CEO & Co-Founder of Levenue, said:
“As we enhance our operations in Switzerland, a significant market for both sides of our marketplace, we recognised the need for a strategic move to strengthen our presence. Switzerland, by its nature and legislation, stands separated from the EU, making it a unique market that demands a tailored approach.”
As noted in the update:
‘Acquiring MidFunder, a self-regulated company with a remarkably similar mindset, tech stack, and business model, presented us with an amazing opportunity. This strategic move allows us to accelerate and solidify our operations in Switzerland, demonstrating our commitment to providing innovative and efficient financing solutions to businesses in the region.”
As mentioned in the announcement:
‘We believe that combining our strengths with MidFunder’s expertise will not only benefit our Swiss clients but will also contribute to reshaping the landscape of business financing in this key market. We are excited about the possibilities this acquisition unlocks and look forward to the positive impact it will have on our mission to revolutionise the way businesses are analysed and financed in Switzerland and beyond.”