Mantle
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Mantle

Raising Capital Is About to Look a Whole Lot Different

Photo by Priscilla Du Preez on Unsplash

Up until now, businesses have had two options: scale fast while accepting significant debt or dilution, or bootstrap while accepting less available cash and slower growth.

But what if there was another way to resource rapid scaling — one that did not rely on the pursuit of external capital?

This is where Mantle comes in.

At Mantle, we are introducing a new financing platform that enables businesses to quickly access funding without relinquishing control of their business or paying interest on loans — rapid, non-dilutive, non-debt capital.

We achieve this by unlocking a new asset type, recurring revenue streams.

Using Mantle, businesses can sell recurring revenue streams to investors for upfront capital; subscriptions, direct debits, and loan receivables can all be traded as assets on Mantle.

No more need for term sheets, schmoozing VCs or organizing your business to suit outdated banking models — just rapid capital so you can scale on your terms.

So what does this funding process look like on Mantle?

Think of the Mantle platform as capital-as-a-service.

To start selling recurring revenue streams, businesses set up an account on Mantle, connect their accounting software (and any other platforms that facilitate their specific recurring revenue streams), select the contracts they want to sell for upfront capital, and then get an instant payout.

Each business is given a trade price to sell their recurring revenue streams and a trading limit for the amount they can sell. These are both determined by the age, financial metrics, and time on the Mantle platform.

Upon the sale of a recurring revenue stream, payouts are made within the same business day.

What are the basic requirements to access Mantle as a business?

  1. Recurring revenue streams. Businesses need to be issuing an approved recurring revenue stream — subscriptions, direct debits, “buy now, pay later”, credit products, personal loans, auto loans, mortgage loans, or student loans can be traded as assets on Mantle.
  2. 12+ months of trading. Businesses must have a proven track record of growth and sales.
  3. £10k+ monthly revenue. Businesses must be generating at least £10,000 of sales on a monthly basis.
  4. Third-party verification. Businesses must be using third-party platforms (accounting, subscription, direct debit management, etc.) to enable recurring revenues and financial health to be verified independently.

The Future of Funding

As entrepreneurs, we are all too familiar with the pains of raising capital from VCs or pursuing other external finance, especially when it comes to fundraising for businesses with monetization models that don’t match what traditional bank managers are used to.

By enabling businesses with recurring revenue streams to sell a selection of contracts upfront, we see there is a viable alternative to traditional financing models businesses are currently using.

We do not envision this funding type removing the need for VCs and other investors for the most part. Instead, Mantle’s revenue-based funding model encourages investors to get involved with startups earlier on — when they need the support. It also reduces dilution and protects early-stage investor positions as startups begin to generate revenue and use Mantle as a means of accessing capital to power growth.

Additionally, because this type of financing focuses on business growth metrics, Mantle also takes a step toward removing bias in funding decisions. It’s no secret that the lion share of VC funding goes into businesses founded by white, middle-class, well-connected males. By re-focusing funding decisions on whether or not specific growth metrics have been hit and not who is running a company, there is an opportunity to create a more diverse, competitive, and dynamic startup space.

About Mantle

Mantle is a finance platform that allows businesses to convert monthly recurring revenue into instant upfront capital.

For more information, please visit mantle.fund or email hello@mantle.fund.

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