General Catalyst, one of the largest U.S. companies doing large business, has set up a fund to buy sales deals from startups, increasing the number of companies hoping to benefit from this approach.
In a statement, General Catalyst said it was planning to launch a fundraising campaign to consider “purchasing receipts from operating companies”. General Catalyst wants to raise up to $ 300m on the first fund of the list, according to another source, where one financier claims to have made $ 100m.
General Catalyst, which oversees more than $ 8bn in revenue, declined to comment on the game.
The new system, called Structured Opportunities, will be one of the earliest and largest fundraising projects for technology from a professional, low-cost but fast-paced approach that began during the epidemic.
The start-up combination of Capchase and Pipe, both established over the past two years, allows companies to sell their rights on future low-cost streams. In the UK, Greensill, a softBank-backed company approved companies to sell their invoices, fell dramatically earlier this year.
These sales are mainly driven by invoices and sold to business software companies, who earn the money that traders predict.
Pipeline chief Harry Hurst he said this month the company started grabbing “tens of thousands of dollars” during its busiest days. The company, which saves money he appreciates at $ 2bn, it connects companies and buyers of contracts, earning up to 1% from both sides.
Capchase, a debt collector, He said in June it provided $ 390m capital to over 400 companies.
While the agreements may allow companies to raise new money without reducing the performance of others, some economists have warned that donations are not tested and could be more expensive than traditional loans.
Companies that sell one year for a profit of 92 cents per dollar, for example, pay the equivalent amount of more than 15% per annum for most future investments.
General Catalyst, based in the Boston region, is best known for its investment in companies such as Snap and Stripe. The company has already started making donations from the Structured Opportunities Fund, said one accountant.
In a statement, General Catalyst said it would use a “machine learning system” to monitor financial performance. The company said buying the money that companies receive from companies could lead to the same conflicts as repaying a loan, even though the money “doesn’t look like a loan”.