Founded in 2017, Round2 is a growth stage investor in leading digital scaleup companies and a pioneer of revenue-based finance in Europe.
The fund is today announcing the successful closing of another round of fundraising taking its assets under management to close to €30 million. Despite overall subdued sentiment due to the economic effects of COVID-19, Round2 has been able to significantly increase its assets under management. The funds were raised from existing as well as from new investors.
So how does Round2’s revenue-based finance work?
It represents a simple, transparent and flexible instrument by which non-dilutive funding is provided against a small share in revenues until a predefined cap is reached. Unlike rigid repayment plans of bank loans or venture debt instruments, the repayments are tied to monthly revenue and thus naturally adapt to cash flows. The fund explains– “No personal guarantees, no discussion about valuation, no required exit and you stay in control of your business and its destiny.”
The Round2 portfolio proved to be stable since the beginning of the year and demand for the non-dilutive Round2 funding solutions continues to increase. These developments show the robustness of the revenue-based investment strategy, also in times of economic stress, as well as its attractiveness to both entrepreneurs and investors.
Now, Round2 will continue the expansion of its investment portfolio to firmly establish revenue-based finance in the European market.