A new player has come on the European fintech stage: Booste, a start-up offeringrevenue-based financing to e-commerce businesses.
Booste is the perfect partner for small and medium-sized enterprises, whose owners value independence and full control over financials flows. The financing from Booste can be spent on supercharging the growth of the business by funding digital marketing campaigns (including advertising on Google and Facebook), as well as the activities of marketing agencies.
The product developed by Booste is a friendly, high-tech alternative to the offer of banks and other entities traditionally providing capital for business activities. Booste’s approach to the fundraising process is maximum flexibility with minimum hassle: the client is not required to present any guarantees or collaterals and no transfer of ownership is involved. At the same time Booste offers the possibility to individually determine the repayment terms, including the frequency, rates and the form of repayment. In return, it charges a single, fixed fee of 6% of the funds shared. All of the funding is repaid at a frequency agreed with the client, who decides how much of the revenue will be allocated for repayments.
– We finance the growth of both young and mature companies, including those without a credit history or with rapidly changing financial needs, for example in the rapid growth phase. Our model works well for businesses that are seasonal or prone to the impact of economic crises: the amount and schedule of repayments is adjusted to the revenue. – says Jakub Pietraszek, co-founder and CEO of Booste. – We are looking to support in particular the smaller companies operating in a highly competitive online shopping market, allowing their owners to focus on what is crucial: growing the business.
Booste’s founders also attach great importance to the convenience of using the product, the speed of the process and the security of entrusted data. The tool is integrated with the most popular global platforms used by e-commerce businesses (Google, Facebook, Shopify, WooCommerce, PrestaShop, Stripe). The start-up also focuses on integration with local solutions: in the Polish market the list of integrated platforms already includes Shoper and eSklep (home.pl) and will soon also include Shoplo.
– Thanks to this approach, our client can receive an offer within 24 hours, and then the capital itself already within 24-48 hours. We are working on building a scoring model based on AI that will accelerate this process even more. It takes less than 5 minutes to apply for funding. We will soon introduce new and convenient repayment methods and expand the integration ecosystem with store platforms. Speed and good user experience are our top priorities. – says Michael Kacprzak, the co-founder of the start-up.
Booste founders are experienced managers with international experience. Jakub Pietraszek’s CV boasts stints as CEO of Uber Eats and CEO at Elab startup, he also has many years of experience in consulting firms: EY, Deloitte and KPMG. Michael Kacprzak is an agile delivery and product management consultant. Among others, he worked with the developers of the Berlin language learning application Babbel and the startup Tidio and was a co-founder of the SaaS platform for dieticians – TiqDiet.
Booste was established in the venture building ecosystem of Tar Heel Capital Pathfinder, which has been supporting the company operationally and strategically since its establishment. The start-up has raised a total of PLN 2 million in funding at the outset, some of which comes from a private investor.
– We see great potential for the company’s development in international markets. The revenue-based financing model is gaining popularity and is about to become one of the preferred ways for founders to raise capital. The technology being developed, the flexibility of the tool and the ease of use are all key qualities that put Booste in a good position to become one of the leaders in this market – says Michał Wrzołek, senior investment director at Tar Heel Capital Pathfinder, supporting Booste from day one.
The start-up is already in the process of acquiring the next round of financing and plans to maintain the rapid pace of development: at the beginning of the year, it launched onto the Polish market, and in the following months it will start the customer acquisition process in other European markets.