BridgeUp is a trading platform that provides businesses with the capital they need to accelerate their growth, without debt or dilution. How do we do this? By transforming recurring revenue contracts into instant, upfront capital.
How does BridgeUp work?
Companies sign up and sync their systems with BridgeUp, after which they are assigned a trade limit and a pool of their contracts are made available to trade. Our enlisted investors place bids on those contracts and provide the company with the annual value of the contracts upfront, at a slightly discounted rate. This allows the company access to instant cash needed to grow their business, without debt or dilution.
Is it an alternative to equity financing?
We believe that our model works wonderfully in tandem with equity financing. With BridgeUp, a company who is in need of capital doesn’t need to look to VCs as their only option. Our model allows businesses to grow on their own terms without any premature dilution of ownership to founders and early stage investors. This also empowers them to secure better valuations for later rounds.
Is BridgeUp’s financing model similar to a loan/venture debt?
No, unlike with loans/venture debt, we do not take any collateral, warrants or personal guarantees or charge any interest. We treat recurring revenue as tradable assets. Our enlisted investors make bids to purchase a company’s monthly recurring revenue contracts in exchange for their annual value. This annual value is given to the company upfront. The company continues to receive payments from customers on a monthly basis as usual – which they then use to pay back the investors.
Is it Revenue Based Financing/ Merchant Cash Advance?
Apples to Oranges. We are not a debt product. BridgeUp provides an outright sale of revenue. The investors don’t have a lien on the assets of the companies. Additionally, since the amount to be paid against the sale is fixed, the cost of capital to companies trading on BridgeUp is both lower and far more predictable compared to RBF.
What kind of companies is BridgeUp best suited for?
BridgeUp is a great fit for subscription based companies with recurring revenue. Presently, a majority of the organizations enrolled on our platform are SaaS companies. However, BridgeUp is industry-agnostic, and any company/individual with predictable, recurring revenue streams can sign up and trade their contracts/customers for instant, upfront capital.
What kind of investors are on the platform?
Currently, the buy-side consists of NBFCs (Non Banking Financial Companies) who place bids based solely on the performance of the company. The company’s identity remains anonymous to the investor.
Do I need to pay to sign up for BridgeUp?
Nope. Signing up on our platform is totally free and there are no sign-up charges.
I am using a custom accounting method that is not listed on the platform?
No problemo! Get in touch with us at [email protected] and we’ll figure out a custom onboarding process just for you.
How do I know if BridgeUp is right for my company?
If you’re a company with recurring revenue, looking for cash to grow and scale your business – BridgeUp can work wonders for you! The best way to see what our platform can do for you is to sign up for our platform and sync your systems to see how much upfront capital you can procure against your recurring revenue contracts. It only takes a few minutes, and is completely free of charge. There is no obligation to perform a trade after signing up.
Do I need to tell my Customers I’m using BridgeUp?
Nope. BridgeUp does not disrupt or interfere with your existing processes or workflow in any way at all.
How many contracts can I trade ?
BridgeUp provides each company with a trade limit, which is the maximum amount you can trade. This limit is based on information gathered from our evaluation of your business’ financials (We look at your growth patterns, runway, churn, burn rate and other such metrics.) You can select as many contracts as you like, within the trade limit. As you perform more trades, our systems get more analytics which let us reevaluate and increase your trade limit every fortnight.
What happens if one of my traded contracts churns?
If a traded contract churns, it is automatically replaced with another contract of equal value. You don’t have to pay any penalties or fees.
What is the value an investor offers me for my contracts?
The bid-value an investor will offer is determined based on the information provided to them based on BridgeUp’s financial evaluation of your business. The rate of discount on BridgeUp is much lower than what you would typically offer customers as discounts to incentivise them to opt for annual plans.
Other than giving me upfront cash, how can BridgeUp help my business?
Not all money is created equal. We believe the capital you receive through BridgeUp is more valuable and powerful, as you can access it fast (within 48 hours) and use it to grow your business however you see fit. Our platform empowers you to focus your energies on your business instead of chasing a fundraise. It also protects you from unnecessary debt/dilution, empowering you to seek investments when the time is right and receive better valuations. Aside from this, BridgeUp also eliminates the need for discounting and incentivising customers to opt for annual plans.
I am an investor, how do I know if BridgeUp is right for me?
BridgeUp gives you access to a new asset class – recurring revenue contracts. Recurring revenue is an investor’s delight – as this is a fixed-income like product with stable, steady and predictable returns. All you have to do is sign up for the platform, set your investment criteria, bid and sit back as we take care of the rest.
How do I get my money back?
The upfront value of your investment is returned to you in the form of recurring, monthly payments. At the end of the 12 month period, you make a fixed income return on an uncorrelated liquid asset. BridgeUp is a liquid marketplace which allows you to further sell your contracts as well. Recurring Revenue serves as a great diversification to your portfolio.
What is the bid-value an investor must offer for an annual contract?
BridgeUp gives you complete control and allows you to set your own price. You can bid to purchase a contract, at the value of your choosing. Additionally, we collect information on the company’s performance and use our proprietary assessment factors to evaluate this data and assist you in your decision.