Uncapped, a UK-based provider of revenue-based business funding backed by Mouro Capital, a venture capital firm solely sponsored by financial services firm Santander, has raised $80m of debt and equity financing, according to TechCrunch.
Venture capital firm Lakestar led the round, which has increased Uncapped’s overall debt and equity funding to around $119m.
Founded in 2019, Uncapped offers investment capital for startups that is repaid by sharing a portion of future revenue. Business can receive between $14,000 and $7m at a flat fee of 6% to 12%.
Uncapped does not charge compounding interest for the funding it provides, nor does it take an equity stake.
It follows a similar business model to US-based Pipe, which raised $250m of funding at a $2bn valuation this week.
The capital injection will enable Uncapped to launch new products and services for the banking sector. The company started to issue Visa payment cards as part of its offering in 2020.
Mouro Capital, which spun off from Santander, led a $26m funding round for Uncapped in September 2020 that also featured Global Founders Capital, Iron Ventures, Seedcamp, White Star Capital and assorted angel investors.
The company secured $12.7m in a debt and equity round backed by Global Founders Capital, White Star Capital, Seedcamp and a number of angel investors in December 2019.