Paris-based SILR SAASS has raised $128 million in its Series A round of funding from a diverse group of investors. The company is using a scoring algorithm to help predict future revenue. Additionally, it is bringing the company’s experience with Pipe and Clearco to the European market.
Series A funding round
Silvr is a French company that is a pioneer in offering Revenue Based Financing (RBF) at scale. Its operating system allows digital companies to access future revenue in less than 24 hours.
Silvr has a scoring algorithm that analyzes past performance, calculates how much money a company can make from its existing users, and predicts what it can expect from its future revenues. As a result, it determines how much to lend at each step. Currently, Silvr has financed 100 companies in Europe.
According to its founders, Nima Karimi and Gregory Tappero, Silvr is aiming to help digital entrepreneurs succeed. They have already financed over 100 companies in Europe, and plan to add at least 100 new employees in the coming year.
Silvr provides financing to digital companies without any capital dilution. It offers three ways to receive the funds: common stock, preferred stock, and debt. It charges a fixed commission of 6-9% on the amount financed.
Bringing the Pipe and Clearco experience to Europe
The Clearco fintech unicorn has raised a tidy EUR12 million in funding last month, making it one of the hottest startups in the European fintech space. The company is led by a trio of young guns with a track record of putting money where their mouth is and building a winning portfolio in the process. While the competition is fierce, the company’s tenacity has paid dividends in the form of a stellar product and network.
Not to be outdone, the company is also announcing a major expansion to the UK. With a new headcount, the Clearco team will be able to take on the competition with aplomb. Among other notable initiatives, the company is also expanding its check writing capabilities via a partnership with FirePower. This may prove to be a boon for the already cash strapped financial services industry, as banks look to find ways to keep their customers happy and savvier.
Bringing the $128 million debt line
Silvr, a French startup, is now the top fundraising operation in Europe, thanks to its EUR130 million Series A round. The firm has already financed over 100 startups. It uses data from Stripe, Shopify, and Google Analytics to calculate the likelihood of a startup’s revenues. As a result, the startup can get loans based on predicted future income. They can then allocate a portion of that revenue toward repayments.
This new funding from investors will allow Silvr to grow its team and expand its European locations. In addition to its EUR18 million equity funding, Silvr raised EUR112 million in debt. It plans to use its new money to recruit over 100 employees over the next year.
Silvr uses a credit scoring model to determine the likelihood that a company will make future revenue. To do this, it relies on various tamper-proof data sources. When evaluating a business, the company looks at past performance, as well as a 12-slide pitch deck. If it finds that the business can handle the loan, it provides the startup with funds that can be paid back in full within 24 hours.