Pollen VC builds a digital lending business to help app developers access their app store earnings early. Their tech platform connects directly to app stores to price risk in real time. This allows developers to reinvest earnings daily into user acquisition instead of waiting 60+ days for platforms to pay out. Typically, developers fail to get early credit and can't acquire more users, but Pollen VC's new model provides funding using real-time app data to validate risk. They aim to fund more opportunities for long tail developers by improving access to working capital.

1. BUILDING A DIGITAL LENDING BUSINESS
RITESH THADANI
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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
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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…
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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…
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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
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6. BUILDING A DIGITAL LENDING BUSINESS
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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
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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
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9. BUILDING A DIGITAL LENDING BUSINESS
STRUCTURE
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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
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11. THANK YOU
ritesh@pollen.vc
@thadani
Follow us at @PollenVC