Pollen VC Building A Digital Lending Business
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Pollen VC builds a digital lending business to help app developers access their app store earnings early. Their tech platform connects directly to app stores to price risk in real time. This allows developers to reinvest earnings daily into user acquisition instead of waiting 60+ days for platforms to pay out. Typically, developers fail to get early credit and can't acquire more users, but Pollen VC's new model provides funding using real-time app data to validate risk. They aim to fund more opportunities for long tail developers by improving access to working capital.
Pollen VC Building A Digital Lending Business
- 1. BUILDING A DIGITAL LENDING BUSINESS RITESH THADANI 1
- 2. BUILDING A DIGITAL LENDING BUSINESS Building a Digital Lending Business ABOUT POLLEN VC • Global App Marketplace is a $25Bn market growing to $142Bn within three years* • We help app developers unlock their app store earnings early to fuel growth and deploy venture capital more efficiently • New data-driven approach to lending - our tech platform connects directly to central billing system for digital products to price risk in real time *Source:Vision Mobile Developer Economics Survey Feb 2014 2
- 3. BUILDING A DIGITAL LENDING BUSINESS PROBLEM: PLATFORMS ONLY PAY OUT REVENUE UP TO 60+ DAYS AFTER YOU’VE EARNED IT. LAUNCH You’re earning money from day 1 This is your money trapped in the payment system Platforms release your cash… 3
- 4. BUILDING A DIGITAL LENDING BUSINESS Reinvest directly into advertising Acquire more users more quickly Draw down earnings on a daily basis A NEW WAY… 4
- 5. BUILDING A DIGITAL LENDING BUSINESS TYPICAL LAUNCH SCENARIO LAUNCH Fail to get credit with ad networks Can’t reinvest to acquire more users Get paid by platforms DOWNLOADS REVENUE Revenue/Downloads Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Jun 2015 Jul 2015 5
- 6. BUILDING A DIGITAL LENDING BUSINESS 6
- 7. BUILDING A DIGITAL LENDING BUSINESS FUNDING FOR FINTECH Building a Digital Lending Business Amount $ Capital Markets Banks Family Offices Equity Capital Data/Model Validation 7
- 8. BUILDING A DIGITAL LENDING BUSINESS DIGITAL Creation and shipping of physical goods Invoices created at end of month and posted/emailed. Paid 30,45,60 day terms Advertising booked weeks in advance - eg TV campaigns, direct mailings Factoring/Discounting solutions available to shorten cycles at a cost App Store Marketplace - Real time economics Consumers purchase digital product real-time - billed to credit cards instantly Advertising purchased in real time through RTB exchanges Lack of financial products eg invoice financing 30 days is a long time. 60 days is an eternity! VS OLD WORLD COMPARISON PHYSICAL 8
- 9. BUILDING A DIGITAL LENDING BUSINESS STRUCTURE 9
- 10. BUILDING A DIGITAL LENDING BUSINESS GROWTH IN THE LONG TAIL Building a Digital Lending Business •c. 70,000 developers making more than $10k/year across iOS and Google Play •L-Shaped revenue curve is flattening out •More opportunities for developers in the long tail •User acquisition becoming better understood 10
- 11. THANK YOU [email protected] @thadani Follow us at @PollenVC