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Industry

SMB Finance + Neo Banking

Company Type

FinTech-Alternative Lending and Payments Platform

Size

$7.5 Million to Support Warehouse Facility + $5-$7 Million Equity

Investment Type

Warehouse Credit Facility Subordinate Credit Tranche, Equity


Overview


Finovance is raising up to $15.0 million allocated in two separate capital tranches as follows:

1. $5.0 to $7.0 million for working capital and general corporate purposes
2. $7.5 million subordinate credit tranche:
     • to leverage the $25 million warehouse credit line¹
     • warehouse line can grow to $50 million
     • expected to close Q1 2024

• Offering SMBs full life cycle of growth capital (see Solution/Strategy)

• Initially offering forward-factor financing (or revenue-based financing “RBF”) of future receivables ranging from $30,000 to $2.0 million

• Grasshopper Bank strategic BaaS partnership in place:
     • FDIC insured accounts up to $250,000
     • Debit/Virtual cards “payments.” (interchange fee opportunity)

(1) Credit facility subject to complete due diligence and customary closing conditions


Why now, why Finovance?



Opportunity


Market Opportunity

Large underserved market


Solution / Strategy


More Robust RBF Solutions

  • High return opportunity – avg target RBF factor rate of 1.5x – 1.65x
  • Initially targeting RBF financings from $30,000 to $2 million
  • Ability to offer diverse and longer payment terms of 3 to 60 months
  • Customized and dynamic pricing, offering either a fixed or variable repayment option
  • Rapid AI assisted underwriting – in some case minutes
  • No blanket lien on assets or guarantees
  • Offer “white labeled” banking products and services via our banking partner

Management


Manuel Henriquez| Co-Founder, Co-Chairman, and Co-CEO


  • Serial entrepreneur, having founded or co-founded six prior ventures
  • Founder and former Chairman, President and CEO, Hercules Capital (NYSE:  HTGC, $2.0 B mkt cap); raised over $3 Billion and distributed approximately $1.0 Billion to shareholders
  • Partner, VantagePoint Venture Partners, a $2.5 billion multi-stage technology venture fund (2000-2003)
  • President and Chief Investment Officer, Comdisco Ventures, a division of Comdisco, Inc., a leading technology, and financial services company (1997-2000)
  • Vice President, Crosslink Capital; FKA Omega Ventures – Robertson Stephens (1994-1997)
  • Director of Finance and Operations, ON Technology, a Kleiner Perkins backed software startup (1991-1994)
  • Lucile Packard Foundation for Children’s Health, the sole fundraising entity for Lucile Packard Children’s Hospital and the child health programs at Stanford University School of Medicine.

Craig Schmeizer | Co-Founder, Co-Chairman, and Co-CEO


  • Co-founder and Co-CEO, TshirtKing.com, a consumer business operating in five international markets
  • Founder, Idle Group, a consolidator of D2C sleep brands including Idle Sleep, Haven, and Mend Sleep
  • Co-founder, Resident, named the fastest growing e-commerce retailer in North America by Digital Commerce 360 in 2018
  • EVP Marketing, JP Morgan Chase Bank, credit card division
  • SVP and Division COO, Altisource, a large mortgage servicing tech firm
  • SVP Marketing, Providian Financial
  • Corporate Vice President, The New York Life Insurance Company, responsible for International (China, India, Mexico, Taiwan).
  • VP, HSBC, credit card marketing
  • Co-Chair, Direct Marketing Association’s International council

Gavin Conway| Co-Founder, Chief Product Officer “CPO”


  • Entrepreneurial ecommerce expert, with deep technical, analytical, and commercial expertise, with 18+ years of original and unique B2B and B2C product and digital marketing leadership for cross sector brands including Airbnb, Google and Virgin Group
  • Chief Growth Officer, GrowthShop, leading a team of 30+ engineers, UX designers and product growth specialist (2020-2023)
  • Independent Consultant, delivering digital growth and transformation services for clients that included edtech, social content, crypto-finance, technology recruiting and B2B SaaS businesses (2017-2020)
  • Head of Growth Marketing and Digital Innovation, Omnicom Media Group (2008 – 2016)

Tayo Dayo| Chief Technical Officer “CTO”


  • Responsible for architectural design of Finovance platform including IT governance; compliance with NIST, ISO27001, Cyber Essentials and Cyber Essential Plus best practice deployment
  • Interim CTO / IT consultant for over 30 years across a spectrum of clients and projects
  • Noted public speaker on IT security, FinTech, Infrastructure, Ethical Hacking, and EU’s General Data Protection Regulation (“GDPR”)
  • Proven history of leading design and development of IT projects from inception to completion.
Learn More About Finovance
Thank you for your interest in Finovance.Please fill out your information and we will contact you shortly with more information on this opportunity.

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CONTACT US

Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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