Uncapped Secures $80 Million to Expand Revenue-Based Financing in Europe

U.S.-based Pipe, often described as the “Nasdaq for revenue,” recently achieved a $2 billion valuation after raising $250 million. This success stems from its ability to offer SaaS companies immediate access to their future revenue streams.

A Similar Model Gains Traction in Europe

A comparable financing approach is now emerging in Europe, with Uncapped leading the charge. This London-based startup intends to broaden the application of this model beyond SaaS to encompass the rapidly expanding e-commerce sector.

Uncapped has successfully completed an $80 million funding round, combining both debt and equity, to facilitate the launch of a comprehensive suite of banking services specifically designed for modern, tech-focused businesses.

Funding Details and Existing Investors

The funding round was spearheaded by Lakestar. Uncapped’s existing investor base includes prominent firms such as All Iron Ventures, White Star Capital, Global Founders Capital, and Mouro Capital.

Expansion into Banking Services

The newly acquired capital will be strategically allocated towards expanding into the banking arena, introducing innovative products and services. The company initiated the issuance of Visa cards last year.

Alternative Financing for Growth

Established in 2019, Uncapped presents itself as a viable alternative to conventional debt financing and venture capital. It provides growth capital with a flat fee, potentially as low as 6%, and offers rapid access to funds.

Repayment is directly linked to revenue generation, eliminating fixed schedules, compounding interest, equity dilution, and personal guarantees. Furthermore, neither credit checks nor detailed business plans are required.

Capitalizing on the E-commerce Boom

Uncapped’s arrival is particularly timely. The recent surge in e-commerce activity has created a substantial demand for capital that exceeds the capacity of traditional VCs. Traditional banks often lack understanding of the needs of new entrepreneurs.

While neobanks are attempting to address this gap, their processes can still be comparatively slow.

Uncapped's Vision for Digital Entrepreneurs

According to co-founder Piotr Pisarz, “Digital companies are innovating and evolving faster than ever before, but their legacy banking providers are not keeping up with the pace. We want to help digital entrepreneurs with quick access to funding, insights that help their business grow, rewards they actually care about, and modern integrations that will save them time and money.”

Addressing Banking Dissatisfaction

Co-founder Asher Ismail emphasized, “The reality is that legacy banks don’t really understand the needs of digital entrepreneurs, and their dated infrastructure is not up to the standards required to help their business grow. So it’s no surprise that 82% of business owners say they are unhappy with their bank.”

Lakestar's Perspective on Uncapped

Nicolas Brand, a partner at Lakestar, stated: “The composition of our economies is changing, with digital native businesses contributing an ever-increasing share to overall GDP. Uncapped uses real-time data provided by its clients across APIs to offer bespoke credit and other novel banking services.”

This data-driven approach allows Uncapped to deliver tailored financial solutions.