- VC operating in computer science and information technology space
- Employing venture capital services model
- Finbridge subsidiary is a player in fast growing alternative finance market
Information technology is transforming the global economy, and this fascinating exposition gives some examples of those changes by pointing out (http://nnw.fm/8MeWM) that “Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estate.” Disruptive digital technologies, coupled with access to large amounts of data, are, as one commentator noted (http://nnw.fm/5bDZb), “facilitating new products and services, creating new processes, generating greater utility, and ushering in a new culture of management.”
At the forefront of this revolution are companies like Accelerated Technologies Holding Corp. (OTC: ATHC). Like most VC companies, ATHC acquires and monetizes the equity in portfolio companies. However, in addition, it employs a venture capital services model and so provides guidance, infrastructural support and investment capital to entrepreneurs with game-changing ideas.
That approach is already underway at its Finbridge subsidiary. The fintech company was set up to provide capital to alternative lenders, with receivables between $2 million and $5 million, operating in the merchant cash advance and other short-term micro loan environments by factoring their receivables. These alternative lenders include independent sales organizations (ISOs) that market debit and credit card processing services to merchants on behalf of credit card member banks. An ISO will provide ongoing customer service to the merchant once the account has been activated and, in many instances, some degree of funding, for which it is compensated. However, as a result of providing credit, its cash resources fall and receivables build up on the balance sheet. Consequently, if origination of merchant accounts is to continue, access to short term funding is vital. The factoring services provided by Finbridge can play a crucial role in ensuring that ISOs have the funds to facilitate new merchants.
Finbridge, based in New York City, was incorporated in 2017 and began operations the same year. The company’s lending model provides ISOs with an alternative to applying for a bank loan or leveraging private investment capital to obtain cash to grow their business. Apart from originating new accounts, ISOs may also require funds to add sales agents, expand operations, buy out a partner or invest in their IT infrastructure.
Although its primary source of revenue will be derived from the loans made to ISOs and Merchant Cash Advance Lenders (MCAs), Finbridge will also provide other revenue-earning services. These include performing credit checks, split funding, ACH capabilities, lockbox and data visualization, CRM software, merchant background checks, services to determine a merchant’s repayment ability and collection services to be undertaken by an in-house legal team. MCAs are short term lenders that will advance a lump sum to a merchant in exchange for a percentage of daily credit card sales, plus a fee.
Also in ATHC’s portfolio is IconXchange, which is being developed to fund personality brands, such as those associated with sports and entertainment personalities. Using blockchain technology, IconXchange will offer a decentralized, open, resilient infrastructure that allows individuals, for the first time, to quickly and safely obtain and exchange direct investment in personality “icons” of the sports and entertainment industry, which will be facilitated by using IconXchange Coins, an easily tradeable cryptocurrency designed exclusively for such trading.
Another company in the ATHC fold is XStreamCorp, which presents an opportunity to market a revolutionary Reality Gaming Social Network. Designed to compete with Facebook’s Social Gaming market, the platform will incorporate proprietary technologies providing users with streaming video, audio and messaging capabilities, with the aim of enhancing both the user’s experience and the gaming effect.
ATHC’s most recent venture, launched in July 2018, is Intelagy. This is a business hub for small to mid-sized businesses that will provide affordable electronic payment and point-of-sale solutions, alternative funding and digital media and branding services for merchants operating in retail, online and mobile environments.
For more information, visit the company’s website at www.ATHCorp.com
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