London/San Francisco-based start-up Pollen has announced it will deploy over $150m of capital to mobile app developers during 2014, as part of its new closed beta developer financing platform.
Pollen is pioneering what it calls ‘Velocity Capital,’ which is similar to the factoring model used the finance space. Basically, developers can sell their App Store receipts to Pollen in order to get faster access to app revenue.
Pollen’s solution explained
According to Pollen, developers can sometimes wait up to 60 days before getting any cash from Apple. The company says this financing bottleneck can impede an app’s success in the charts – and developer growth overall – due to the increasing importance and cost of user acquisition campaigns.
It’s solution? Pay devs 95% of app sales or in-app purchases – after Apple’s 30% cut – every seven days. Pollen says it can also immediately re-invest funds into user acquisition campaigns with partnered ad networks.
“We created Pollen to provide app developers with faster access to their app store revenues, which can then be used to accelerate their growth and install base. So far, we’ve seen exceptional demand for our early beta, both from app developers, but also venture capital firms who recognize that Velocity Capital can help their portfolio companies to deploy capital more efficiently.”
As most app marketers know, a significant aspect of a successful user acquisition campaign is building and sustaining momentum. So we imagine many devs would very much welcome a service that gives them more flexibility and freedom in terms of how they fund their marketing efforts.
Pollen is supported by a number of investors, including Caltech and Archimedia. The platform currently in a closed beta but you can find out more on the official site.