Dutch company Levenue acquires MidFunder

Securing capital from traditional financial institutions remains one of the largest hurdles for founders. Banks often required personal guarantees, leading to lengthy waiting periods and eventual rejection. Being entrepreneurs and early-stage founders themselves, Patrick Frei and Pascal Schumperli co-founded MidFunder in 2020 to fill this gap with a new approach.

With MidFunder, the co-founding duo offers business owners fair and non-dilutive capital allowing them to focus on their growth. One of MidFunder's key advantages is its speed - the platform assesses companies within 48 hours, with funds 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 partially based on quantitative data, such as accounting data and revenue growth, removing any possibility of prejudice in the financial evaluation.

Initially focused on crowdfunding for SMEs, MidFunder pivoted to become a revenue-based financing platform for digital businesses and has since grown from strength to strength. The company raised over CHF 1 million in seed funding and attracted talent from companies such as Funding Circle, N26, Wise, Amazon, iwoca, re:cap, and Moss.

Motivated by a shared mission to provide new funding avenues without dilution for businesses, MidFunder entered into acquisition discussions with Levenue, one of the leading players in the revenue-based financing space operating in 16 European countries. The Dutch-based company uses subscription-based financing as a tool to fund growth companies. To date, it has funded over 500 companies with  ~300m in facilitated trade.

“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,” said Benjamin Rieder, CEO & Co-Founder of Levenue.

(Press release/RAN)