Ritmo, the Capital as a Service company that offers non-dilutive investment to digital entrepreneurs, has closed its first round of financing, led by Sabadell Venture Capital, Inveready and FinRebel, worth 3 million euros.
With the entry of this capital, the company maintains a hybrid structure of capital and venture debt in its financing that will allow it to meet the objective set for this year of financing 15M to digital businesses with recurring or predictable income.
In addition to institutional investors, some strategic investors with extensive experience in international capital markets also participated in the round, such as Bruno del Ama, CEO of Finrebel and Alfredo Soriano, Senior Advisor of JB Markets.
In parallel, Ritmo will use this injection to evolve its artificial intelligence models and product development, as well as to expand into new markets.
It is worth noting that in its first five months, Ritmo already has agreements to finance more than €5M euros, a staff of 9 people and various financial and technological agreements that will allow it to scale its growth.
Ritmo analyses the company's data and the performance of its digital marketing campaigns to make decisions using an artificial intelligence model. If the company's figures and growth are adequate, Ritmo advances up to €2M, which the entrepreneurs pay back based on a small percentage of their future income, adapting this repayment to the company's progress.
This system does not include fixed monthly instalments. The company pays back the money with a small percentage of its daily sales until the total amount borrowed plus a 6% commission is repaid. This form of Revenue Based Finance, which is succeeding in countries such as the United States, is coming to Europe to stay.
The clients are mainly E-commerce and SaaS companies, which use Ritmo for Capital as a Service, financing those peaks that every business has due to seasonality and new product launches. This is in addition to subscription businesses, platforms and mobile applications. In short, any digital business with predictable or recurring revenue.
"When we launched Ritmo, we were convinced that companies needed a different way of financing themselves, beyond banking and venture capital. A non-dilutive, flexible and fair way. The reception has been very good, and we hope to be able to help many entrepreneurs to fulfil their dreams", says Pablo Gasalla, co-CEO and co-founder of Ritmo.
Technology and data: the basis of Ritmo's model.
"Technology and data have transformed entire industries. Ritmo brings this disruptive change to the financing of digital businesses, based solely on metrics in a transparent, fast process designed by entrepreneurs, for entrepreneurs".
Raimundo Burguera, also co-CEO and co-founder, notes "We have seen an impressive market reaction because entrepreneurs are valuing our flexible and non-dilutive way of financing their growth for their business peaks and seasonality. The growth of E-commerce, resulting from the stay-at-home economy, means that our non-dilutive investment is changing the rules of the game.
At Inveready, Ignacio Fonts states "Ritmo represents another link in the deconstruction of the financial system that fintechs are carrying out. Their approach to the credit assessment of companies, through the information they extract by connecting to their customers' applications, gives them a very important edge over traditional credit providers.
From Sabadell Venture Capital, Raúl Rodríguez points out that "at Banco Sabadell, as a banking institution, we believe that financing is a lever for growth and economic and social development. The Ritmo team and their approach to the market are reinventing the way in which digital companies can finance the growth of their businesses in a more flexible way that adapts to their sales cycles". And in line with this he adds "we are excited to partner with entrepreneurs like Rai and Pablo who share our mission, and we see that far from competing, they are a complementary solution that will strengthen the growth of the digital economy".
JME Ventures’ Samuel Gil highlights "Ritmo is changing the way companies finance themselves. They offer a very attractive product thanks to their flexibility and speed. All of this is supported by technology, which is what really makes them stand out from other financing providers".
For his part, Bruno del Ama says "At FinRebel we only link with companies that share our values and that are focused on improving people's lives. Ritmo meets those criteria because of its focus on helping entrepreneurs grow their digital businesses regardless of their gender, background or education, thus making digital investment democratic".
About Ritmo:
Ritmo helps digital entrepreneurs grow faster, through non-dilutive funding and growth tools. Targeted specifically at E-commerce and SaaS companies, as well as any digital entrepreneur with recurring or predictable revenue.
Ritmo currently has two products: marketing advances for E-commerce and MRR lines for SaaS companies. For E-commerces, this is ideal to cover the peaks and seasonality of their business or to increase investment in digital marketing or inventories at certain times of the year. In short, to grow faster. The MRR Monthly recurring revenue lines product helps SaaS companies by making their monthly subscription revenue annual, advancing their subscription revenue by up to one year.
Ritmo proposes a financing model of up to €2M based on its digital business metrics. This Spanish fintech is reinventing the way digital businesses are financed and grow. The philosophy is simple: give companies access to fair and flexible financing for their digital marketing campaigns, allowing the return of that financing through a small percentage of your future income. In return, the client pays a total commission of 6% on the amount advanced. No small print, with absolute transparency. In just six months, Ritmo has already become a reference for the E-commerce sector and SaaS companies in Spain, having helped its clients to finance themselves in a non-dilutive, simple and flexible way thereby accelerating the pace of growth in their businesses.
About Inveready:
Inveready Asset Management, based in San Sebastián, is one of the leading Venture Capital Managers in Spain. Currently, it invests in recently-created technology companies through 4 specialized verticals (Information Technology, Life Sciences, Venture Debt and Hybrid financing - debt and equity - for listed companies). Inveready has 136 active companies within its portfolio and more than €400M of assets under management. Over the last 11 years this Venture Capital Manager has completed successful divestments in more than 36 companies, Playgiga and Más Móvil being the most recent. Other companies in the portfolio have been acquired by multinationals such as Intel, Symantec and Red Hat (IBM) and others have been listed on public markets such as NASDAQ or MAB. Enabling the ambitions of bold entrepreneurs has become part of their DNA. Inveready is proud to have received a lot of awards, highlighting the ASCRI awards for the best venture capital manager in Spain, the best venture capital operation and the best debt operation.
About JME Ventures:
JME Ventures is a Venture Capital Fund with offices in Madrid and Barcelona. They have €120M under management and invest tickets between €200k and €3M. They have invested in companies like Flywire, JobandTalent, Ironhack or LingoKids.
About FinRebel:
Finrebel is a New York-based Private Equity Firm focused on customer-centric companies led by purposeful entrepreneurs. Finrebel is focused on digital business in the Fintech, EdTech, Digital Health and Digital Events spaces. The Company partners with companies and entrepreneurs whose mission it is to make the world a better place.
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