We are MonetaFlex and we are building an online crowdfunding platform that offers businesses a quicker and more flexible option to raise short-term funding up by selling their unpaid invoices to multiple investors.
The two co-founders, Simba and Michael, have backgrounds in private equity and corporate debt investment at global investment firms (KKR and Terra Firma Capital Partners) and MonetaFlex’s chairman is Peter Gardner, a former executive committee member at HSBC Alternative Investments and one of the original investors in Last.fm (sold to CBS for $280m) and an early backer of SUGRU which raised £3.5m on Crowdcube in July 2015. Our CTO, Emmanuel, has built software platforms for major financial institutions including BNP Paribas, Bloomberg and Unicredit.
- Make it quicker, easier and cheaper for businesses to release the cash trapped in their invoices.
- Create a large, liquid and global invoice finance market for non-bank investors.
- Disrupt an age-old industry by disintermediating the banks, which currently dominate the market.
Two Key Platform Features
A. Invoice Finance Crowdfunding
- Businesses are able to sell one invoice at a time to multiple investors in competitive online auctions allowing for greater flexibility
- Typical whole-book invoice financing (whereby a business is contractually obliged to sell most of its invoices to a bank or finance company) is not suitable for all businesses and MonetaFlex provides the flexibility to dip in and out as business needs demand without contracts
B. Collaborative Supplier Early Payment
- Businesses with excess cash in the bank can request suppliers to bid (by offering discounts) for early payment in automated auctions
- Suppliers can bid to receive discounts at any point during the tenor of an invoice
- This compares favourably to static arrangement’s usually included within payment terms e.g. “2% in 10 days” which translates to a high cost of financing for the supplier of 37% APR on a 30 day invoice
Which clients does MonetaFlex aim to serve?
- Typically small to medium sized businesses
- Suppliers can sell their invoices on the platform to investors or bid in auctions against other suppliers to receive early payment from their debtor companies (buyers) in exchange for discounts
2. Corporate Buyers
- Typically medium to large sized companies with excess cash balances
- Buyers can capture the economic value trapped in their supply chain and strengthen supplier relationships by(1) Automating and maximising supplier discounts through online early payment auctions; (2) Accessing accretive risk-free returns via deploying excess cash to capture discounts; and (3) Improving profit margins and profitability
- Typically asset rich, high net worth individuals, asset managers, hedge funds, family offices, individuals etc.
- MonetaFlex offers Investors the opportunity to buy short duration assets, offering attractive risk-adjusted returns, as well as being a means to diversify into an asset class currently dominated by banks
How will we use the funds raised?
The proceeds of this fundraise will allow us to complete developing and launch our invoice finance platform. We have put together a very talented team and have great partners helping us build MonetaFlex.
Our CTO is leading the software development in conjunction with our London-based software development partner and the law firm Mayer Brown is advising us on our bespoke finance and platform legal documentation.
The £100K we are raising will used as follows:
- Platform development: £50K
- Office space incl. dedicated office space post launch: £10K
- Marketing budget: £10K
- Annual salaries: £30K