# Pollen VC launches first live lending facility for app and game makers, enabling them to borrow 4x their monthly revenues Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-07-26 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Pollen VC Revolutionises App and Game Developer Financing Meta Description: Pollen VC now allows app and game developers to borrow up to 4x their monthly revenues via a transparent revolving line of credit, based on live performance URL: https://financedigest.com/pollen-vc-launches-first-live-lending-facility-for-app-and-game-makers-enabling-them-to-borrow-4x-their-monthly-revenueshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/news-headline-on-mobile-for-online-information-or-mediafych1zdo-1736838138876-compressed.jpg) - **Live lending:** Using open banking, accounting and platform APIs, Pollen VC’s credit algorithms have a granular view of a developer’s underlying metrics, enabling them to  increase [lending](https://www.financedigest.com/peer-to-peer-lending-how-to-use-p2p-lending-for-loans-and-investments.html) appetite on a daily basis - **Impact:** App and game developers will now be able to borrow up to 4x their monthly [revenues](https://www.financedigest.com/itv-forecasts-12-jump-in-q2-ad-revenue-on-euros-demand.html) via a revolving line of credit providing non-dilutive capital to grow faster - **Learning:** Pollen VC launches a series of financial tools to empower founders and CFOs to model cash flow and understand their user acquisition campaigns **10th June 2021, LONDON:** Fintech lender [Pollen VC](https://74n5c4m7.r.eu-west-1.awstrack.me/L0/https:%2F%2Fpollen.vc%2F/1/01020179f551dedc-2e6b7d00-5a8b-4a04-9f53-2b7401b5f8f8-000000/ltVEGsW6rBC_pXUrYYMW-EEfxnc=218), a leading provider of credit facilities to app and game developers, has today expanded the amount developers can borrow to up to 4x their monthly [revenues.](https://www.financedigest.com/itv-forecasts-12-jump-in-q2-ad-revenue-on-euros-demand.html) Pollen VC’s data driven credit models now have a more granular view of how revenue is generated over time, [enabling them to expand](https://www.financedigest.com/forescout-and-fireeye-expand-partnership-enabling-faster-response-to-cybersecurity-threats.html "FORESCOUT AND FIREEYE EXPAND PARTNERSHIP, ENABLING FASTER RESPONSE TO CYBERSECURITY THREATS") credit lines based on live performance metrics. Access to additional capital via a transparent revolving credit facility enables developers to supercharge their [growth without relying on venture capital or revenue](https://www.financedigest.com/visa-revenue-growth-slows-more-as-tough-economy-sobers-spending.html "Visa revenue growth slows more as tough economy sobers spending") based loans. In contrast to the increasingly ubiquitous revenue-based lending (RBL) approach, Pollen VC provides a flexible [line of credit](https://www.financedigest.com/austria-grants-credit-line-to-vienna-utility-squeezed-by-power-price-surge.html "Austria grants credit line to Vienna utility squeezed by power price surge") that is based on a live picture of a developers accounts receivable (AR), plus an estimate of the residual value remaining in live user cohorts. The [company had previously provided pure AR financing](https://www.financedigest.com/ultimate-growth-for-sme-finance-company.html "Ultimate growth for SME finance company"), but with the addition of the ability to borrow against the value of existing users combined into one simple facility, it’s now possible to borrow more via this model than through RBL, and with a much more transparent structure. App and game developers rely on finance to help them [market and promote their products whilst they wait](https://www.financedigest.com/jittery-markets-attempt-risk-on-rally-while-waiting-for-powell.html "Jittery markets attempt risk-on rally while waiting for Powell") to be paid from the Apple App Store or the Google Play Store. With more than $120Bn being spent on apps and games globally, these [businesses face](https://www.financedigest.com/how-to-overcome-the-challenges-faced-by-women-in-business-4.html "How to overcome the challenges faced by women in business") cashflow squeezes on a regular basis. **Martin Macmillan, CEO & Founder at Pollen VC** commented: “Developer revenue isn’t just realised at the point of download, monetization occurs over their consumer’s lifetime usage of the [app or game](https://www.financedigest.com/virttrade-to-create-valiant-heroes-collectible-card-game-app.html "VirtTrade to create Valiant Heroes collectible card game app"). Our ability to base our [lending](https://www.financedigest.com/peer-to-peer-lending-how-to-use-p2p-lending-for-loans-and-investments.html) decisions not just on AR, but also now in a [developer’s existing user base is unique and will be a game](https://www.financedigest.com/mobile-games-developer-huuuge-says-has-24-2-million-at-svb.html "Mobile games developer Huuuge says has .2 million at SVB") changer for the industry. The amount of available credit is recalculated on a daily basis so as [marketing performance improves](https://www.financedigest.com/how-digital-marketing-images-can-help-improve-your-business.html "How Digital Marketing Images Can Help Improve Your Business"), so the amount available to borrow will grow.” “The revenue-based lending model works well for industries such as SaaS where stable, predictable [revenue streams](https://www.financedigest.com/innovation-is-the-path-to-revenue-how-financial-organisations-can-open-up-alternative-revenue-streams.html "Innovation is the path to revenue: How financial organisations can open up alternative revenue streams") exist. But, in mobile gaming, users can churn much faster, making the model less applicable for the app and gaming sector generally, and [opening up both developers and lenders to additional risk](https://www.financedigest.com/with-greater-freedom-comes-heightened-risk-how-to-help-ensure-consumer-data-remains-secure-in-an-open-banking-system.html "With Greater Freedom Comes Heightened Risk: How to Help Ensure Consumer Data Remains Secure in an Open Banking System") if loans can’t be repaid. Our “AR plus residual cohort” model is our take on the revenue-based [lending](https://www.financedigest.com/peer-to-peer-lending-how-to-use-p2p-lending-for-loans-and-investments.html) model, but built from the ground up for our vertical” **added Martin Macmillan.** At the core of Pollen VC’s vision is [improving the financial literacy](https://www.financedigest.com/5-ways-to-improve-your-financial-literacy.html "5 Ways to Improve Your Financial Literacy") of developers. All too often developers rely just on equity financing to fuel their growth and don’t consider forms of [alternative](https://www.financedigest.com/demystifying-alternative-finance.html "DEMYSTIFYING ALTERNATIVE FINANCE") financing, sometimes needlessly diluting their equity instead of considering more capital efficient funding. Pollen VC has [launched a range of resources for the app and game developer](https://www.financedigest.com/avaloq-enlarges-innovation-ecosystem-through-launch-of-developer-portal.html "Avaloq enlarges innovation ecosystem through launch of developer portal") community to help them better understand their cash flow, financials and user acquisition metrics. [The company’s CFO resources page](https://74n5c4m7.r.eu-west-1.awstrack.me/L0/https:%2F%2Fpollen.vc%2Fcfo-resources%2F/1/01020179f551dedc-2e6b7d00-5a8b-4a04-9f53-2b7401b5f8f8-000000/tdBouwrURI-DouvX9Gec_eyuhe8=218) includes a range of free to access calculators, content and templates to help the gaming and app development ecosystem improve their overall level of financial awareness and make more informed financing decisions. Looking ahead, **Martin Macmillan** added: “We have worked with hundreds of app and [gaming developers since 2014 and the industry has changed](https://www.financedigest.com/exclusive-olympics-paris-2024-plans-games-relay-changes-fewer-torches-source.html "EXCLUSIVE-Olympics-Paris 2024 plans Games relay changes, fewer torches-source") radically since the early days. Our new lending approach provides a breath of fresh air to the industry which will enable [gaming and app founders to really understand their numbers and enable faster growth and the ability to scale](https://www.financedigest.com/russia-sharply-scales-back-far-east-war-games-with-china.html "Russia sharply scales back Far East war games with China") in a capital efficient way. We will [provide developers with greater access to capital and financial](https://www.financedigest.com/mazars-to-acquire-financial-modelling-consultancy-and-training-provider-corality-financial-group.html "Mazars to acquire financial modelling consultancy and training provider, Corality Financial Group") knowledge to really transform the industry”. Pollen VC [provides revolving credit](https://www.financedigest.com/providing-credit-managers-with-a-new-sense-of-visibility.html "Providing credit managers with a new sense of visibility") lines to game and app developers to help them scale faster. Their finance works alongside venture [capital funding](https://www.financedigest.com/galois-capital-flagship-fund-to-close-after-ftx-losses.html "Galois Capital flagship fund to close after FTX losses") as a non-dilutive complimentary funding source. Application criteria: the [business must have one or more live apps on the Apple App Store or Google Play Store, $20,000 – $5,000,000 in monthly revenue and 3 months or more of transaction history in its business bank](https://www.financedigest.com/credit-agricole-launches-china-ma-and-investment-banking-business.html "Credit Agricole launches China M&A and investment banking business") account. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---