Funding platform Liquidity Capital invests $12.5M in e-commerce retailtech startup Resident

Raising capital or seed fund is one of the challenges many startup founders face. Not many startup founders have the connection to raise money from banks or venture capital firms. Some founders only reach out to their circle of influence or high net worth seed or angel investors who provide them the financial backing to jump start their projects.

What if there is another option? Liquidity is a new financial platform that offers startups financing against future revenues. The firm intends to invest in companies with annual sales of over $3 million. The Tel Aviv-based Liquidity Capital, of Tel Aviv-listed investment house Meitav Dash, was founded to change the way startup companies deal with growth challenges. Liquidity provides unlimited unsecured, non-recourse, no dilution growth capital.

Today, Liquidity announced it has invested $12.5M trajectory-based funding in Resident, the direct-to-consumer e-commerce retailtech startup to further capitalize on its position as North America’s fastest growing e-commerce retailer and increase growth into additional home products. Resident owns and operates a house of consumer furnishing brands including: Nectar, DreamCloud, Level, Awara, Wovenly, Bundle and 1771 Living.

Founded in 2017 by Ron Daniel, Oron Maymon, and Yaron Sela, Liquidity Capital funds tech startups and SaaS providers that demonstrate over $5M in ARR and 30% year-over- year growth, with an average ticket size of $10M-$30M. Founded by serial entrepreneurs and with offices in New York, Miami and Tel Aviv, Liquidity Capital is backed by Mitsubishi UFJ Fund Services and is part of Meitav Dash Ltd., the leading Israeli institutional investment house. Liquidity Capital has already committed over $200M of growth capital in 2019 and plans to fund over $500M in the US market for 2020. Notable investments made by Liquidity Capital include Le Tote, Infinidat, ezbob, and Sweet Inn.

Liquidity Capital offers tech startups and SaaS providers a one-of-a-kind funding alternative, enabling them to double down on their hyper-growth without giving up equity. Their trajectory-based financing model allows Liquidity Capital to work with startups side-by-side, taking on all financial risk. Powered by machine learning algorithms which forecast the future business trends of its investments, Liquidity Capital is the only provider of unlimited non-secured loans in the industry.

“We are thrilled to be investing in Resident,” said Liquidity Capital Co-Founder and CEO, Ron Daniel. “Seeing as Resident is the fastest growing e-commerce retailer in North America, this investment strengthens our investment portfolio greatly. We are happy to be doubling down on e-commerce, pairing Resident with our investment in Le Tote, a leader in e-commerce fashion retail. We’re excited to watch the continued hyper-growth of Resident and give then any support needed along the way.”

Direct-to-consumer brands are disrupting the established retail market, leading to a shift in the relationship between brands and consumers. Currently operating in San Francisco, New York City and Tel Aviv, Resident provides consumers with better choices when it comes to everyday home products offering unparalleled standards for quality, style, and value. Beginning as an online retailer for high-quality, affordable memory foam mattresses, Resident continues to grow their direct-to-consumer sales, expanding their range to rugs, couches, chairs and bean bags for homes everywhere.

“We have been extremely impressed with the Liquidity Capital team from our very first meeting with them” said Resident’s Co-CEO, Ran Reske. “Ron Daniel clearly understands all the ups and downs an entrepreneur goes through, as he has already experienced this journey himself. The fact that they have been entrepreneurs was very important to us in choosing a capital partner. In addition, the new approach of non-dilutive capital for a fast-growing business like ours is the perfect solution and made this transaction a no-brainer for us. We look forward to working with Liquidity Capital as we continue to scale our business.”

“Unlike investment funds or those that provide loans, we do not ask for collateral or equity,” Liquidity CEO Ron Daniel said in a Monday interview with Calcalist. Rather, the fund finances companies according to specific milestones, he said, for the opportunity to “buy” future revenues at a discount.