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BUILDING A DIGITAL LENDING BUSINESS
RITESH THADANI
1
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
2
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 money
trapped in the payment system
Platforms
release your
cash…
3
BUILDING A DIGITAL LENDING BUSINESS
Reinvest directly
into advertising
Acquire more users
more quickly
Draw down earnings
on a daily basis
A NEW WAY…
4
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
Revenue/Downloads
Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Jun 2015 Jul 2015
5
BUILDING A DIGITAL LENDING BUSINESS
6
BUILDING A DIGITAL LENDING BUSINESS
FUNDING FOR FINTECH
Building a Digital Lending Business
Amount $
Capital Markets
Banks
Family Offices
Equity Capital
Data/Model Validation
7
BUILDING A DIGITAL LENDING BUSINESS
DIGITAL
Creation 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
8
BUILDING A DIGITAL LENDING BUSINESS
STRUCTURE
9
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
10
THANK YOU
ritesh@pollen.vc
@thadani
Follow us at @PollenVC

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Pollen VC Building A Digital Lending Business

  • 1. BUILDING A DIGITAL LENDING BUSINESS RITESH THADANI 1
  • 2. 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 2
  • 3. 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 money trapped in the payment system Platforms release your cash… 3
  • 4. BUILDING A DIGITAL LENDING BUSINESS Reinvest directly into advertising Acquire more users more quickly Draw down earnings on a daily basis A NEW WAY… 4
  • 5. 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 Revenue/Downloads Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Jun 2015 Jul 2015 5
  • 6. BUILDING A DIGITAL LENDING BUSINESS 6
  • 7. BUILDING A DIGITAL LENDING BUSINESS FUNDING FOR FINTECH Building a Digital Lending Business Amount $ Capital Markets Banks Family Offices Equity Capital Data/Model Validation 7
  • 8. BUILDING A DIGITAL LENDING BUSINESS DIGITAL Creation 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 8
  • 9. BUILDING A DIGITAL LENDING BUSINESS STRUCTURE 9
  • 10. 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 10
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