Liquidity Capital, a provider of unlimited unsecured, non-recourse, no dilution growth capital, earlier this year announced their plan to fund over $500 million of growth capital to technology startups throughout this year. Recent headlines have been Japan’s Mitsubishi UFJ Financial Group’s core banking subsidiary MUFG Bank and Liquidity Capital announced the entry of both parties into a Joint Venture Agreement to launch a debt financing business for startup companies mainly in Asia-Pacific.
The recent deal between MUFG Bank and Liquidity Capital will establish a joint venture named Mars Growth Capital in Singapore. Mars Growth Capital will establish a debt fund (the “Fund”) based on a Limited Partnership Agreement entered between Mars Growth Capital, as a general partner, and MUFG Bank, as a limited partner. The Fund has an initial capital commitment of $80 million that will used to provide financing to startups. The establishment of Mars Growth Capital and the Fund and launch of the financing business are expected to take place this year.
Liquidity Capital funds tech startups that demonstrate over $3 million in ARR and 30% year-over- year growth, with an average ticket size of $10-30 million. The company was developed by a group of tech entrepreneurs, mathematicians and a leading group of financial experts. It was founded in 2017 by Ron Daniel, Oron Maymon, and Yaron Sela, and is backed by Meitav Dash Investments Ltd. and Mitsubishi UFJ Fund Services. Liquidity Capital is based in Tel Aviv with offices in New York City and Miami. Other notable investments made by Liquidity Capital have included Resident, ezbob, and Sweet Inn.
Last was a breakthrough year for Liquidity, funding over $200 million to startups across the Cloud, E-commerce, and SaaS sectors, including two unicorn startups, Infinidat and Le Tote. Commenting on the previous year from a press release earlier this year, Liquidity Capital CEO and Co-Founder Ron Daniel said, “We’ve established ourselves as the industry’s go-to firm for non-dilutive growth capital thanks to tremendous results in 2019. With continued support from Meitav Dash Ltd. and Mitsubishi UFJ Fund Services, anything is possible for 2020 and beyond.”
Commenting as well earlier this year was Akihiko Okamoto, Mitsubishi UFJ Fund Services Managing Director and Chief Investment Officer who stated, “Liquidity Capital is overturning the traditional credit analysis and credit management model that incumbent financial institutions around the world have been committed to for over 100 years. Even in Japan where the financial culture leans more conservative, we are extremely excited to be involved with Liquidity Capital as they upend the equity financing model for growth stage startups.”
Powered by machine learning algorithms, Liquidity Capital’s proprietary data integration tool, Liquidity Dynamics, enables smarter investing by forecasting the future business trends of its investments. Utilising verified historical data sets and industry recognised predictive methodologies, Liquidity Dynamics is able to asses both opportunities and risks to serve its investments, allowing Liquidity Capital to work with startups side-by-side, taking on all financial risk.
Through the collaboration of both entities, there will be strong synergies and know-how. MUFG is one of the world’s leading financial groups, headquartered in Tokyo with over 360 years of history; the company has a global network with over 2,700 locations in more than 50 countries. The Group has over 180,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The recent announcement of Mars Growth Capital in Singapore will surely be one of other innovations to come.