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Founder conversationUnicorn $50m+

How Fundkite Reached $70M in 2023 Revenue With a 90-Person Team

Alex Schwartz explains how Fundkite prices revenue-based finance deals, manages defaults and write-offs, and automates underwriting.

Alex Schwartz · Fundkite

Published March 21, 2024
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What you’ll learn

Nathan Latka interviews Alex Schwartz, CEO of Fundkite, a revenue-based finance company that buys small-business receivables at a discount. Schwartz covers $110K average deals, cost of capital versus APR, a 6.8% write-off rate and the automation behind about $70M of 2023 revenue from roughly 90 people.

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Cost of capital, not APR

“I'm getting $90,000. I gotta pay back a $100,000. My cost of capital is $10,000. That's the true way to look at this.”
Watch at 08:15

Offer rate on applications

“Out of 5,000 applicants, we made offers to merchants. About 27% of those applicants, we made funding offers”
Watch at 10:56

Why merchants really default

“Nine out of 10 of those deals that go into defaults are not because the merchant is running into issues. They're going in because they get the debt settlement companies call them and say, basically, stop paying.”
Watch at 18:48

Collections versus write-offs

“I think trailing, it's about 12 to maybe 15% of the portfolio going to some type of a collection issue.”
Watch at 19:36

Automation to scale offers

“we can go from processing 5,000 or 7,000 applications a month to 50 or a 100,000 because it's gonna be very automated and shoot these offers.”
Watch at 25:07

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About the speaker

Alex Schwartz

CEO · Fundkite

Company revenue
$70M

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