Seed8 December 2020

Outfund secures £37m in late seed funding led by Fuel Ventures to expand its revenue-based lending.

The late seed round included participation from TMT Investments, Force Over Mass, and angel investor Chris Adelsbach.

£37.0MSeed

Outfund is a financial technology company that provides revenue-based financing to online businesses and e-commerce enterprises. The firm offers an alternative to traditional bank loans and equity dilution by advancing growth capital based on future revenue projections.

Outfund has secured £37m in a late seed investment round comprising debt and equity to expand its lending operations. The financing was led by Fuel Ventures, with participation from TMT Investments, Force Over Mass, and angel investor Chris Adelsbach.

The company will use the capital to increase its maximum lending limit, develop new products such as working capital and revolving credit, and grow its internal team. Outfund leverages automated data analysis to evaluate ecommerce performance and provide funding alternatives without requiring equity dilution.

Following this transaction, the firm intends to deploy £100m in capital to more than 5,000 businesses over the coming year. The round reinforces the company position as a prominent revenue-based lender in the British market.

From the founder

"As a second time entrepreneur myself, I experienced first-hand the complex, timely and often imbalanced nature of the old-school financing routes. I knew there was another way and so decided to build it. Our ambition is for Outfund to be the place to go to grow your business without compromising your equity or wasting time fundraising. This is why we have spent time developing a way to make the process of securing money for growth easier, fairer and most importantly, faster. Our approach has been warmly received by founders and directors alike and so now we’re looking at how we can open this up to more businesses and continue to be part of their journey to success for a long time."

Daniel Lipinski

Founder and CEO at Outfund

Investor perspective

"Daniel and the team are pivoting the model of business funding, rebalancing the scales so that business owners don’t lose out financially while getting the capital they need to supercharge their online business’s growth. At Fuel we work with the most ambitious entrepreneurs building market leading companies. Outfund is a perfect example of this – a strong, passionate founding team creating a game-changing venture that is now a leader in its field."