The flywheel is in motion

August 29, 2022

So much movement is happening on the third party underwriting side now that we've had ample time to demo the platform to numerous different groups. We just received a term sheet from a credit fund this past week to do co-underwriting with us and they are committing to deploy into deals that they are running lead on underwriting and structuring and using that capital to take down anywhere from 50-80% of the deal. Doing some quick math, this equates to [ ] in new recurring revenue but more importantly, it establishes a captive capital base when it's becoming harder to come by with just retail investors.

This concept of captive capital is incredibly powerful as it solves three main issues. First, it provides a great branding opportunity as investors are investing alongside reputable funds and gives us more credibility as a platform. Second, it bolsters our ability to close transactions of meaningful scale especially when paired with our other source of captive capital, our blended notes. Third, this type of committed financing also attracts underwriters because as long as they underwrite to meet the eligibility criteria of these co-underwriters then they too get the benefit of being able to draw capital from them and support their deals on Percent.

With all these pieces coming together, we are turbocharging our entire flywheel to reach true scale 🔁