Braavo Capital Inc., a leading company that provides financing for consumer subscription apps, has announced that it has successfully raised $5 million in a Series B funding round. This round was led by existing investors and included participation from Headline, the lead investor from their Series A round. Additionally, Braavo has secured a new $30 million debt fund from Upper90, which is a significant achievement for the company as it continues to expand.
Key Points
- Company Background and Achievements: Braavo was founded in 2015 and has become the top company globally for financing solutions aimed at app founders who want to grow their businesses without giving up too much equity. The company has provided over $1 billion in financing since it started, which shows its strong commitment to supporting the app economy. Braavo’s financing operations are profitable, indicating a solid business model.
- CEO’s Vision: Mark Loranger, the CEO and Co-Founder of Braavo, explained that the new funding will support Braavo Growth Ventures. This new initiative is designed to drive innovation in the consumer subscription market. While Braavo continues to expand its core financing operations, it also plans to use its extensive market experience and relationships to support new ventures.
- Growth Ventures Division: Growth Ventures is a new division within Braavo that will focus on strategic partnerships with app businesses to increase subscriber growth through web monetization, also known as web2app. This means helping app businesses make money not just through in-app purchases but also through their websites. This can be challenging and expensive for many companies, so Growth Ventures aims to make this transition easier.
- Preparation and Launch: Growth Ventures has been quietly building its team and developing its growth platform for over a year. It is now ready to launch its web2app offering to a larger audience. Billy Libby from Upper90, an early credit partner of Braavo, praised Braavo’s careful approach to customer acquisition and underwriting, expressing excitement about continuing the partnership.
- Future Plans: Beyond helping with web2app transitions, Braavo plans to develop a broader investment strategy for Growth Ventures. The aim is not just to help companies get more subscribers but to build deeper, long-term partnerships with the most successful companies in their portfolio.
In summary, Braavo’s latest funding round and the launch of Growth Ventures represent significant steps in their mission to support and innovate within the consumer subscription app market.
About Braavo Capital Inc.
Braavo was founded in New York City in 2015. Their mission is to offer a better model for mobile app and game companies to receive non-dilutive funding for growth. Here are some key points about Braavo:
- Funding Platform: Braavo has built a robust funding platform that provides customized funding for companies of all sizes, stages, and categories. They understand that the dynamics of the mobile app ecosystem are dramatically different from those impacting other tech companies.
- Insights and Analytics: In addition to funding, Braavo offers a suite of powerful analytics tools that track and analyze app performance. These insights help founders make informed decisions and scale sustainably.
- Non-Dilutive Financing: Braavo’s financing solutions are non-dilutive, meaning they don’t require founders to give up equity. This approach allows founders to retain control and optionality at every step of their business journey.
- Innovative Financing Products: Braavo officially launched in late 2015 and now offers two innovative financing products. These products are uniquely tailored to the needs of app and game companies.
- Global Team: Braavo operates as a remote-first team, distributed across 4 continents with hybrid offices in New York City and Warsaw.
- Examples of Apps: Braavo has worked with a variety of apps at different stages. For instance:
- Games: They’ve supported games like Lemmings (a classic 90s puzzle game on mobile), House Flip (where players renovate and flip houses), and CodyCross (a thematic word game).
- Non-Gaming: They’ve also worked with non-gaming apps in areas like health and fitness.
- Challenging Success: Braavo challenges the notion that massive equity raises are necessary for success. They believe that entrepreneurs should have alternatives to traditional funding methods.
Summary
