Levenue acquires MidFunder to strengthen financing in Switzerland

By Gloria Methri

Levenue, the European revenue-based financing company, has acquired MidFunder, a Zurich-based FinTech that provides financing for companies with recurring revenue. The acquisition marks a strategic move to enhance Levenue’s Swiss operations.

‍As entrepreneurs and early-stage investors, Patrick Frei, Founder of MidFunder, and Pascal Schumperli, Co-Founder, identified the difficulty in securing funding from traditional financial institutions. Banks often required personal guarantees, leading to lengthy waiting periods and eventual rejection. MidFunder was conceived to fill this gap, offering business owners fair and non-dilutive capital and allowing them to focus on growth.

Initially focused on crowdfunding for SMEs, MidFunder pivoted to become a revenue-based financing platform for digital businesses. This innovative approach has garnered success, with over CHF 1 million raised during challenging market conditions and a high-performing core team onboard, including individuals with backgrounds in Funding Circle, N26, Wise, Amazon, iwoca, re:cap, and Moss.

One of MidFunder’s key advantages is the rapidity of financing. The platform assesses companies within 48 hours, and funds are typically received within three days of being listed on the marketplace. The underwriting process, including accounting data and revenue growth analysis, ensures unbiased financial evaluation.

“When we spoke to Levenue, one of the leading players in the RBF space globally, operating in 16 European markets, having funded over 500+ companies with ~300m in facilitated trade, it was clear to us that we share the same mission of providing a new way of funding for businesses without dilution,” said Patrick Frei, Founder of MidFunder.

Benjamin Rieder, CEO & Co-Founder of Levenue, said, “Acquiring MidFunder, a self-regulated company with a remarkably similar mindset, tech stack, and business model, presented us with an amazing opportunity. This strategic move allows us to accelerate and solidify our operations in Switzerland, demonstrating our commitment to providing innovative and efficient financing solutions to businesses in the region. We believe that combining our strengths with MidFunder’s expertise will not only benefit our Swiss clients but will also contribute to reshaping the landscape of business financing in this key market.”