After originating in the United States, the Revenue-Based Financing (RBF), Income-based financing, on the way to settlement in France. RBF is an alternative to the more traditional financing methods offered to traditional banking players. Until now, companies seeking financing could either take out a bank loan or honorarium loan, or receive a grant, or raise equity funds. “We’ve seen many digital businesses struggle to finance themselves. They are often denied a bank loan, and VCs are often reserved for big fish. ” Its CEO Nima Karimi explained Silver. “The Revenue-based financing is a complement to this financing approach. ”
Silver, RBF leader
Silver? Fintech, which has raised just 130 million euros, is the first French start-up to launch in this niche since 2020. It supports now More than 200 digital entrepreneurs (SaaS, e-commerce, app, marketplace, Etc. 6) Thanks to its algorithm capable of predicting future revenue for customers. “We connect all of the company’s data: Google Analytics, e-commerce CMS, collection software, bank accounts but also advertising agencies such as Google ads or Facebook ads. ” Nima Karimi explained.
The algorithm relies on artificial intelligence to analyze the company’s current situation, calculate its future earnings, and assign it a score. The score obtained allows Silver to determine whether the company is bankable: the financing decision process is therefore automated.
Silver thus enables its customers to receive 10K to 10 million euros in 24 hours. “On average, the first funding is 300,000Said Nima Karimi. These funds allow them, for example, to pre-fund their stocks, their digital marketing campaigns, or monthly subscriptions for the SaaS platform. These are non-dilutive: the company can retain all its capital in this way.
Revenue-based financing is still a very new method of financing: “When we started in 2020, the market was rising in the United States and non-existent in Europe. Today, it is growing in the United States and emerging in Europe. ” Nima analyzes Karimi.
An unprecedented partnership between Bank and Silver
In March, Bank Popular Reeves de Paris and Silver signed a business provider agreement. “The goal is simple: give our customers a silver offer so they can benefit from it. ” Sophie Magne explains, Innovative Business Market Manager.
Several factors led the bank to launch the partnership: “We want to continue to offer the best solutions to our customers. This partnership allows us to enrich our offerings with a complementary solution, based on a predictive model that allows our customers to test and finance their economic models. ” Pierre Toastett, deputy managing director of Bank Popular Reeves de Paris, added.
A partnership that has several advantages for the bank’s technology client companies First, the possibility of very fast financing within 24 hours. This funding is renewable, to support businesses when needed. “On average, we refinance our customers every three to four months for their growthSaid Nima Karimi.
To benefit from this fund, you must meet two eligibility criteria. Data is needed to be able to predict Silver’s algorithm. So the company must exist for at least one year and already record € 100,000 turnover.
Banks and Fintech: Competitors or Allies?
Fintechs are startups that are shaking up banking and finance codes. As such, they are often regarded as competitors of historical players. Although the reality is more subtle, as shown by the partnership that began between Bank Popular Reeves de Paris and Silver.
“Fintechs is a source of both competition and complementarityPierre Testet explains. On the one hand, competition stimulates our ability to innovate. On the other hand, some startups, such as Silvr, are far ahead of their time. So it makes sense for us to rely on their technology so that our customers do not lag behind in providing solutions.An aspect shared by Nima Karimi, head of Fintech:We do not see ourselves as competitors of the bank. In contrast, we have come to offer companies an offer that is associated with banks”
“Beyond our apparent complementarity in terms of financing, we had excellent contact with Silver’s two founders, Nima and Gregory. This relationship has greatly contributed to the establishment of our partnership“It simply came to our notice then. Through this partnership, which is first for Silver, banking leaders want to support innovation above all else. “It is important for Banque Populaire Rives de Paris to surround itself with local actors to contribute to the development of our region and its actors.”, Ends Sophie Magne.
Madness, Media Partner at Bank Popular Reeves de Paris