Fuel Ventures has led a £37m late seed investment round for Outfund, the startup helping online business scale without giving away equity.
TMT Investment Force over Mass also participated in the raise.
Outfund told TechCrunch that it would use the investment to offer bigger chunks of investment into more enterprises as well as investing in new financial product and growing its team.
It also committed to lending £100m to e-commerce and subscription-based businesses.
“[There’s] organic growth which is slow and cumbersome; bank loans which force directors to give personal guarantees and put their home on the line; or venture capital, where you have to give up control of the business and dilute your shareholding,” Daniel Lipinski, CEO and co-founder of Outfund, told TechCrunch. “Sadly, none of these are aligned with company goals of revenue generation and equity retention.”
Fuel Ventures has previously led investment rounds into FinTech companies like Chaser.
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