Before Divibank, Brazilian small and medium-sized businesses had only two financing options: borrow from a bank or raise venture capital. But most startups don’t meet bank funding requirements, and not all companies can raise VC or want to raise VC.
Divibank offers a third alternative for startups and SMEs: revenue-based financing. Divibank was launched in 2020 by funding digital marketing campaigns through a revenue share model. Since then, Divibank has launched other products including inventory financing and recurring revenue financing.
In this episode, I caught up with Rebecca Fischer, CPO and co-founder of Divibank, to talk about what she learned working on digital marketing campaigns for big brands, how she started Divibank, and how Divibank delivers better financing alternative to entrepreneurs in Brazil.
The overlooked potential of ad spend
Prior to founding Divibank, Rebecca worked for an advertising agency where she helped businesses grow through paid digital advertisements. Clients have invested huge sums of money in their digital marketing campaigns, and the returns have been excellent.
While running ad campaigns, Rebecca discovered two things that started the idea of Divibank: ad spend was a real asset class that could be an alternative to venture capital funding, and a lot of people don’t didn’t take their advertising spend as seriously as she thought. should be.
Listen to this episode to find out how Rebecca found an opportunity to provide funding for entrepreneurs to scale through digital marketing campaigns.
Non-dilutive capital to extend the leads of entrepreneurs
Divibank provides funding for founders who do not wish to dilute themselves through venture capital and wish to access capital to scale their business.
The startup’s clients are usually digital native businesses who know what their short-term revenue will look like. They are looking for financing, but they are not yet ready to share the cake with many other shareholders. Divibank gives them the freedom to choose to raise venture capital funds or continue to grow with non-dilutive capital.
Check out this episode to find out how Divibank helps founders in Brazil expand their leads and scale when at higher valuation.
Overview of this episode:
- [01:10] – About Divibank
- [01:42] – What does SME financing look like in Brazil
- [03:40] – Average Divibank customer
- [05:10] – Rebecca’s journey
- [06:00] – Lessons learned from working in advertising agencies
- [08:08] – ABC of non-dilutive financing
- [11:30] – The zero against one of Divibank
- [12:58] – The first steps of Divibank
- [14:43] – Divibank’s fundraising experience
- [16:30] – Where is Divibank today?
- [17:49] – Rebecca’s book recommendations
- [19:21] – Rebecca’s advice to a younger self
- [20:10] – What is next for Divibank
Resources and people cited: