By Riley Kaminer
For small businesses, securing a loan at the right time can be make or break. Miami-based Boopos is enabling SMEs in South Florida and beyond to lock down the dollars they need, right when they need it.
The startup just announced that it has raised $58 million in Series A funding – $8 million of which is equity, while the remaining $50 million is debt. Bonsai Partners led the round, with participation from Fasanara, which led the seed round, and Actyus and K Fund, among others.
Founded in 2020, Boopos has developed a digital platform to provide eCommerce and SaaS businesses with non-dilutive, revenue-based financing. The company differentiates itself in three ways. First, speed: entrepreneurs can get pre-approved within 48 hours and funded within 7 days. Second, reduced risk: no personal guarantees or dilution. Third, maximum flexibility: entrepreneurs pay a percentage of revenues until their return cap is reached.
This round of funding will enable the company to further develop their platform, expand their team, and ensure they have sufficient funding to lend.
Despite the uncertain economic environment, founder and CEO Juan Ignacio Garcia Braschi told TechCrunch that the startup is doing well at weathering the storm.
“Our portfolio is performing strongly despite the weaker macro environment and recent layoffs and difficulties or even pivots that competitors are experiencing,” he said. “We have adapted our credit policy and are being more conservative, lending lower amounts and being more selective. Our financing is still useful because M&A multiples have compressed, too, based on our database, at least by 20% to 30%.”
According to Garcia Braschi, the company’s valuation has doubled since its $30 million seed round earlier this year. He also said that the company has grown revenue by between 30% and 50% each month since late 2021. The company attributes this growth to its unique product and the large – and growing – market it serves.
There are $50 billion worth of small business sales in the US every year, but these transactions rarely qualify for traditional bank or government-backed financing. In the unlikely event that they do qualify, these processes often take months and require risky personal guarantees. Boopos is disrupting this industry through its automated processes that simplify the loan application and acquisition processes.
The platform is particularly popular with seasoned entrepreneurs who are interested in owning their own business. These users go to Boopos to find pre-vetted businesses for sale, which the startup sources through partnerships with about a dozen online business brokers. Part of Boopos’ edge comes from its proprietary underwriting model, which more effectively assesses both target businesses and buyers.
Boopos has imminent plans to launch a mobile app, which Garcia Braschi described as a “business owner dashboard,” to help streamline the business buying process. The idea is that business owners will eventually be able to manage their portfolio, track revenue, and view debt repayment schedules – all through the app.
Prior to founding Boopos, Garcia Braschi was one of ride hailing unicorn Cabify’s earliest employees, eventually becoming the company’s CFO. Boopos investor TheVentureCity played a major role in attracting Garcia Braschi and team to South Florida, where a handful of their employees are currently based.
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