Supervest, a equity crowdfunding platform for merchant cash advance products, is looking for $ 950,000 on SeedInvest

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Supervest, a equity crowdfunding platform that allows accredited investors to invest in Merchant Cash Advance (MCA) products, raises growth capital on SeedInvest.

According to the offer page, the crowdfunding platform is seeking $ 950,000 for a valuation of $ 15 million. The Bootstrap Round is a side-by-side offering as the titles are offered under both Reg CF and Reg D (506c). Investors receive a “Crowd Note” which will be converted into preferred shares with a 20% discount following a future funding round. The Crowd Note has a term of 24 months at a coupon of 4%. Supervest completed a pre-seed round in 2018 for $ 300,000 at a pre-silver valuation of $ 3 million.

According to Reg CF’s offer circular, Supervest lost approximately $ 168,000 out of $ 123,000 in its last fiscal year.

MCAs are actually high interest rate credit products for businesses in need of a loan. The high rate of return comes with a good degree of risk for the lender. The offer page states that Supervest has provided more than $ 15.5 million in financing to small and medium-sized businesses with a total return on investment (TRR) of over $ 22 million. From December 2020 to January 2021, Supervest reports an 185% increase in MCA funding. Supervest says there is currently a “limited market that an accredited investor can tap into, unless they have a pre-existing relationship with an MCA funder.”

MCAs typically extend credit when more traditional lending companies either don’t or are just too slow to provide a loan. Supervest states that the MCA market is approximately $ 19.2 billion (as of 2019). It is said that donors rely more on unions to co-finance their transactions and this is where Supervest comes in.

Supervest states that they are currently in partnership with initiators targeting areas such as: credit card wallet acquisition, film / theater productions, consumer debt settlement and hard money lending.

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