Pollen VC

An innovative provider of credit facilities to app and games developers has expanded the amount businesses can borrow to up to 4x their monthly revenues.

London-based fintech Pollen VC uses data-driven credit models, which have a more granular view of how revenue is generated over time, to expand credit lines based on live performance metrics.

This ‘live lending’ approach enables developers to supercharge their growth without relying on venture capital or revenue-based loans.

Pollen VC had previously provided pure accounts receivable (AR) financing, but with the addition of the ability to borrow against the value of existing users combined into one simple facility, it’s now possible to borrow more via this model than through revenue-based lending (RBL), and with a much more transparent structure.

App and game developers often rely on finance to help them market and promote their products whilst they wait to be paid from the Apple App Store or the Google Play Store.

With more than $120bn being spent on apps and games globally, these businesses face cashflow squeezes on a regular basis.

Martin Macmillan, CEO & Founder at Pollen VC, said: “Developer revenue isn’t just realised at the point of download, monetization occurs over their consumer’s lifetime usage of the app or game.

“Our ability to base our lending decisions not just on AR, but also now on a developer's existing user base is unique and will be a game changer for the industry.

“The amount of available credit is recalculated on a daily basis so as marketing performance improves, so the amount available to borrow will grow.” 

Martin continued: “The revenue-based lending model works well for industries such as SaaS where stable, predictable revenue streams exist.

“But, in mobile gaming, users can churn much faster, making the model less applicable for the app and gaming sector generally, and opening up both developers and lenders to additional risk if loans can’t be repaid.

“Our ‘AR plus residual cohort’ model is our take on the revenue-based lending model, but built from the ground up for our vertical.”

At the core of Pollen VC’s vision is improving the financial literacy of developers.

All too often, developers rely just on equity financing to fuel their growth and don’t consider forms of alternative financing, sometimes diluting their equity instead of considering more capital-efficient funding.

Key takeaways:

  • Live lending based on data-driven credit models has been launched by Pollen VC as an alternative to revenue-based lending
  • Pollen VC has launched a range of resources for the app and game developer community to help them better understand their cash flow, financials, and user acquisition metrics. Head over to the company’s CFO resources page: https://pollen.vc/cfo-resources/
  • More than $120 billion is being spent on apps and games globally, making access to capital a key issue for developers

Related Campaign

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Richard Dawson
Article by Richard Dawson
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