Fintech outfit Pollen VC is expanding its credit facilities so mobile game developers can now borrow up to four times their monthly revenues.
The expansion has happened as Pollen VC's modelling of revenue flows have gained granularity around live performance metrics.
Pollen VC's modelling is based on a developer's accounts receivable plus an estimate of the value remaining in their player base and its overall lifetime value.
Easy money for growth
This access to additional capital occurs via a revolving credit facility which enables developers to accelerate their marketing without using loans based on actual revenue or having to raise additional investment.
Pollen VC argues that revenue-based lending models work well for less dynamic sectors such as enterprise and SaaS where stable, predictable revenue streams exist.
“Developer revenue isn’t just realised at the point of download: monetization occurs over their consumer’s lifetime usage of the app or game," commented Pollen VC's CEO Martin Macmillan.
"Our ability to base our lending decisions not just on accounts receivable, but also now in 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.”
"Our 'AR plus residual cohort' model is our take on the revenue-based lending model, but built from the ground up for our vertical,” he added.
Pollen VC provides revolving credit lines to game and app developers to help them scale faster.
Its finance works alongside venture capital funding as a non-dilutive complimentary funding source.
The business must have one or more live apps on the Apple App Store or Google Play Store, $20,000 - $5,000,000 in monthly revenue and 3 months or more of transaction history in its business bank account.
For more information, check out the Pollen VC website.