Cinemood, a resident of the Skolkovo Foundation (represented on the Russian market as Multikubik), raised $5 million following a new procedure called innovative factoring of future sales. The credit line to Multikubik was opened by GamesBoost42, which provides working capital financing services to startups.
The parties approached the financing deal in stages, starting with financing marketing costs, said Mikhail Bukhovtsev, CEO of Cinemood.
“In August-September, together with the financial experts of GamesBoost, we developed a first case on the Russian market for factoring all future sales to receive financing for all Cinemood production costs. Such a financing scheme will allow us to quietly scale sales without attracting investment over the next two years,” the head of the Skolkovo company expects.
Cinemood plans to use the funds received to finance marketing and production costs and scale up to US and European markets.
The factoring model of future sales (the loan is provided based on the forecast of the receipt of money from the sales that have yet to take place) can be of interest to any start-ups that need to attract funding to test hypotheses or scale sales. In the face of a liquidity shortage, technology companies will be in demand, among other things, for new models of raising capital.
To attract factoring, a startup shows its sales plan for the upcoming period and, after its completion, has the opportunity to increase the limit of available funding. The factor has the ability to connect in the view only format to the client's CRM and bank accounts, to see his marketing performance and revenue online.
Cinemood is a high-tech company specializing in the design and manufacture of portable mini projectors with online and offline access to its own family content platform. The company's main products are a line of mini-projectors, an online platform for delivering entertainment and educational content, and smart accessories.
At the end of this proud year, the company plans to launch a new product, Cinemood LTE, the world's first portable LTE TV with TV, video calling and VR gaming.
Over the past three-plus years, the startup has attracted $ 10 million in investments from a group of institutional investors: the Internet Initiatives Development Fund (IIDF), the Russian-Belarusian Venture Investment Fund, the Far Eastern High-Tech Fund and several private investors.
The company entered the US market - there were no analogues of Soviet filmstrips and the idea was received with a bang. Since the start of sales, Cinemood has sold 60 thousand cubes in 147 countries. In 2019, the startup's turnover reached $ 10 million.