Insight
Uster: Invoice funding is cheaper than early customer payment discounts
“It is cheaper than giving a discount to your customer to getting paid early.”
Disclosure
Uster: FundThrough operates with a 100% debt advance rate
“The beauty of a model that we have right now is that we have a hundred percent advance rate. So our cost of debt is actually our total cost of capital.”
Assertion Not checkable as stated
FundThrough claims an LTV to CAC ratio of 7x to 9x
“What we'd say is our ratio of LTV to CAC has been quite strong. You know, somewhere in the range of seven to nine.”
Disclosure
FundThrough charges 1% to 2% monthly on invoice advances
“It's typically somewhere in the range of one to two percent a month or one and a half to two percent a month.”
Disclosure
Uster: Early invoice advances were financed at 15% interest or profit shares
“At the time, the debt, well, with no track record and no history I was paying 15%. And for, at some point it was 15%, and for others, it was just a sort of a profit, it was debt, but it was a profit share of what I made by advancing that.”
Assertion Not checkable as stated
FundThrough averaged $15 million monthly in invoice advances in 2018
“So now we're last year in 2018, we were doing about fifteen million dollars a month. In advances.”
Disclosure
FundThrough has raised about $15 million in total equity
“So all in, we've raised about fifteen million dollars in equity you know, going from angel seed rounds or seed extension to a seared A and so, and that's been primarily through local Canadian VC firms and high net worth individuals sort of angels call it.”
Disclosure
FundThrough was valued at about $8 million post-money in 2015
“On that first round the post money valuation was about eight million dollars.”
Disclosure
Uster: FundThrough has lowered its cost of debt to single digits
“And now we're, we finally got it into single digits and you know, we have to keep, as you say, keep driving it down.”
Disclosure
FundThrough burns a couple hundred thousand dollars per month
“A couple of, a couple 100,000 dollars a month.”
Assertion Not checkable as stated
FundThrough advanced $240 million across thousands of companies in 2019
“Two, two to 4000.”
Disclosure
FundThrough evaluates raising $18 million to $50 million in equity capital
“I mean, we're doing some, what if scenarios actually right now about what we would do with the capital. And it could be anywhere from 18 to 50, you know, depending on where we see that use of capital and the dilution that is associated with it.”
Assertion Not checkable as stated
FundThrough client invoice volumes range from $500 to $10 million
“We have folks on our platform who have actually ten million dollars outstanding. That wouldn't be one invoice. That would be, you know, a lot of different invoices. On the low end, we actually have folks on our platform who have 500 dollars. And these are just…”
Assertion Not checkable as stated
Uster: FundThrough's First Advance Was $300,000 for a Walmart Order
“When we launched fund through the very first advance that we made Was a 300,000 dollar advance to a guy who was selling to Walmart and had never sold anything before.”
