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Senior-secured loans to SaaS and E-commerce businesses collateralized by contracted revenues. Typical 12-24 month maturities.
FortunaFi is an asset manager that originates Revenue Backed Finance, or RBF loans from other originators like Pipe. Pipe issues loans to SaaS and E-commerce businesses that have locked in contracts with customers. It is these contracts—contracted revenue—that loans are issued against (hence RBF).
A private company sells cyber-security software. This company is 3 years old and generates 4MM in annual revenue. It seeks to raise working capital to pay employees salaries and upsize its office space.
The company does not want to raise dilutive equity and cannot access bond markets or a traditional loan from a bank (not enough earnings).
Pipe will extend the cyber-security company a short-term loan against the recurring contractual income it generates from its clients. FortunaFi will draw on its revolving credit facility from MakerDAO and buy this loan from Pipe.
Page last reviewed: 2022-10-05
Next review due: 2023-10-05