Pollen VC Building A Digital Lending Business
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BUILDING A DIGITAL LENDING BUSINESS RITESH THADANI 1
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Transcript of Pollen VC Building A Digital Lending Business
BUILDING A DIGITAL LENDING BUSINESS RITESH THADANI
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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
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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 moneytrapped in the payment system
Platforms release your
cash…
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BUILDING A DIGITAL LENDING BUSINESS
Reinvest directly into advertising
Acquire more users more quickly
Draw down earnings on a daily basis
A NEW WAY…
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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
Rev
enue
/ D
ownl
oads
Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Jun 2015 Jul 2015
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BUILDING A DIGITAL LENDING BUSINESS
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BUILDING A DIGITAL LENDING BUSINESS
FUNDING FOR FINTECH
Building a Digital Lending Business
Amount $
Capital Markets
Banks
Family Offices
Equity Capital
Data/Model Validation
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BUILDING A DIGITAL LENDING BUSINESS
DIGITALCreation 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
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BUILDING A DIGITAL LENDING BUSINESS
STRUCTURE
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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
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