Marc is a successful entrepreneur who founded a fashion and technology accessories brand. Marc was pleased as his business grew rapidly and reached profitability after just one year of operations. However accepting orders of large clients proved to be a challenge and the business faced unfavourable payment terms of up to 120 days!
Marc had no doubt that his clients were creditworthy as they were large solvent companies. But as a young business his revenue stream was not high enough for banks and traditional factoring firms to grant Marc the short term financing he needed to take on larger orders and grow his business. Banks followed a checklist approach that completely overlooked the stable revenue source from his recurring clients.
The founders were selected to join the Techstars Barclays Accelerator in London to narrow the scope of the business opportunity whilst partnering with key financial stakeholders. Summer 2014 was beautiful (it doesn’t always rain in London!), and the founders worked crazy hours to turn the idea into a reality. The result? First revenues were generated in 100 days! Today NoviCap is an active marketplace with hundreds of businesses sourcing their working capital directly from professional investors via NoviCap.
Marc approached Federico, Managing Director at Rocket Internet in Southeast Asia. They studied Marc's working capital problem and realised that many other businesses were facing similar working capital problems. As entrepreneurs, they could not possibly turn down the opportunity of a worthwhile adventure.
Marc and Federico joined forces with Nicolas, the technical brain behind NoviCap, and set off to revolutionise the way companies access financing. Together they came up with an automated platform that allows businesses to receive early payments by selling their outstanding invoices to professional investors. The concept is simple: smart finance for smart businesses.