More info on this Techcrunch article.
Boopos, a company that operates a tech-enabled lending platform for acquiring small businesses, has secured $58MM in a combined debt and equity round, tripling its valuation in under one year.
This new Series A equity raise, led by Bonsai Partners, is particularly significant at a moment in which the sector seems to be undergoing challenging times. Other investors participating in this round include K Fund, Fasanara, and Actyus.
Headlines advertise a potential slowdown of e-commerce after the boom fueled during the pandemic. Contrarian to all that news, Boopos has been consistently growing revenue by 30% to 50% month-over-month since late 2021 and plans to continue hiring international talent, expanding its team worldwide.
The Miami-based fintech company, which was born to help talented individuals achieve their dreams of becoming business owners, will use the proceeds to scale its marketplace of pre-approved businesses for sale, in partnership with business brokers. Furthermore, it will continue to develop its proprietary underwriting model based on the analysis of both target businesses, enabled by merchant account connections, and buyers, powered by social footprinting and profiling technology.
Boopos aims to address the needs of a growing class of business owners, as well as management teams aggressively looking to acquire businesses as part of their core strategy, known as aggregators. The start-up announced a first $30MM raise at the beginning of the year.
Investors are attracted to Boopos because of its unique product and the massive market it serves. No other revenue-based lending platform has been able to crack the M&A financing code, something that this start-up has achieved by underwriting both targets and buyers, not just standalone businesses.
Boopos is also fully integrated with brokers and business selling platforms that transact $3BN annually. From Empire Flippers, Quiet Light, and FE International, among many other advisory services, to well-known marketplaces such as MicroAcquire and Flippa.
The company has found success in streamlining the process for an underserved market. Small businesses for an aggregate value of c.$50BN are sold every year in the United States. These transactions rarely qualify for bank financing or government-backed funding programs like the Small Business Administration's CDC/504. When they do qualify, traditional banks and SBA loans tend to work too slowly to be competitive in the online space, require an average of 3 months to transfer funds, and will ask for personal guarantees. As an alternative, Boopos can pre-approve a business in 48h and fund in less than 7 days, without requesting a backup guarantee from the owner. Other options for acquisition financing include raising equity or venture debt, which comes at the price of dilution, something that the revenue-based financing provider also avoids.
Boopos’ portfolio has been performing strongly despite the weaker macro environment. Nevertheless, “we have adapted our credit policy and are being more conservative, lending lower amounts and being more selective”, said CEO and founder Juan Ignacio Garcia Braschi. Overall, “we stick to our mission of offering useful, flexible financing, and remain competitive because we see that M&A multiples have compressed too”, the company revealed.
More info on this Techcrunch article.
Boopos, a company that operates a tech-enabled lending platform for acquiring small businesses, has secured $58MM in a combined debt and equity round, tripling its valuation in under one year.
This new Series A equity raise, led by Bonsai Partners, is particularly significant at a moment in which the sector seems to be undergoing challenging times. Other investors participating in this round include K Fund, Fasanara, and Actyus.
Headlines advertise a potential slowdown of e-commerce after the boom fueled during the pandemic. Contrarian to all that news, Boopos has been consistently growing revenue by 30% to 50% month-over-month since late 2021 and plans to continue hiring international talent, expanding its team worldwide.
The Miami-based fintech company, which was born to help talented individuals achieve their dreams of becoming business owners, will use the proceeds to scale its marketplace of pre-approved businesses for sale, in partnership with business brokers. Furthermore, it will continue to develop its proprietary underwriting model based on the analysis of both target businesses, enabled by merchant account connections, and buyers, powered by social footprinting and profiling technology.
Boopos aims to address the needs of a growing class of business owners, as well as management teams aggressively looking to acquire businesses as part of their core strategy, known as aggregators. The start-up announced a first $30MM raise at the beginning of the year.
Investors are attracted to Boopos because of its unique product and the massive market it serves. No other revenue-based lending platform has been able to crack the M&A financing code, something that this start-up has achieved by underwriting both targets and buyers, not just standalone businesses.
Boopos is also fully integrated with brokers and business selling platforms that transact $3BN annually. From Empire Flippers, Quiet Light, and FE International, among many other advisory services, to well-known marketplaces such as MicroAcquire and Flippa.
The company has found success in streamlining the process for an underserved market. Small businesses for an aggregate value of c.$50BN are sold every year in the United States. These transactions rarely qualify for bank financing or government-backed funding programs like the Small Business Administration's CDC/504. When they do qualify, traditional banks and SBA loans tend to work too slowly to be competitive in the online space, require an average of 3 months to transfer funds, and will ask for personal guarantees. As an alternative, Boopos can pre-approve a business in 48h and fund in less than 7 days, without requesting a backup guarantee from the owner. Other options for acquisition financing include raising equity or venture debt, which comes at the price of dilution, something that the revenue-based financing provider also avoids.
Boopos’ portfolio has been performing strongly despite the weaker macro environment. Nevertheless, “we have adapted our credit policy and are being more conservative, lending lower amounts and being more selective”, said CEO and founder Juan Ignacio Garcia Braschi. Overall, “we stick to our mission of offering useful, flexible financing, and remain competitive because we see that M&A multiples have compressed too”, the company revealed.
