Silvr, a France-based startup, raised $20.6 million in its Series A funding round. It also opened a debt line worth $128 million to fund its activities. Silvr plans to offer new credit opportunities for eCommerce and software-as-a-service companies.
In summary, Silvr wants to expand the Pipe and Clearco experience to Europe. XAnge, Otium, ISAI, and Eurazeo participated in the funding round. There were angel investors including Alexander Prot, Louis Chatriot, Steve Anavi, Pierre Dutaret and Raphaël Vullierme. Silvr started in 2020 and has already financed 100 companies, including French Bandit, Emma&Chloe, Almé Paris, and Cuure.
The data that drives the decisions
Silvr’s business model does not take equity in exchange for the capital offered. In contrast with traditional banks, Silvr can finance riskier businesses with no assets to put up as collateral.
When a company applies to get Silvr credit, they give access to data sources, including the corporate bank account, Google Analytics, the eCommerce platform (where applicable), payments platforms used, and more.
Access to this raw data allows Silvr to use its scoring algorithm to make decisions that serve to make the financing successful.
The present focus
Silvr works with eCommerce and SaaS operations since they usually have enough historical data to predict future revenues.
The data indicates that clients increase their revenue by 64% two months after getting financing from Silvr. The startup does not necessarily replace VC money as 35% of its clients get their funding from VC funds.
There are several ways an applicant receives money. There is the traditional wire transfer, virtual cards, or even making the payments to pay partners directly (for example, if you wanted to do a marketing campaign and intend to use the Silvr funds for it, the company can pay the bill directly).
20 hours ago
