Frequently Asked
Questions

PvX Capital is a financial instrument that invests into a company’s cohorts. The instrument provides cash flow to the business to fund sales and marketing expenses. The funds will be made available through a credit line wherein capital drawdown will be paid back through a revenue share, incurring an interest expense. Uniquely, PvX Capital is only secured by the cohorts in which it invests in and not on the Company or any cohorts your Company has acquired in the past.

PvX Capital is used to to scale up user acquisition spends. If the historical performance of your cohorts are sufficiently stable, the Company will be able to add incremental budget to your campaigns and acquire more users without using capital from your balance sheet. Once these cohorts pay back, the incremental profits from the cohorts flow back to the company.

PvX Capital can also be used to leverage user acquisition spends with a source of capital that does not dilute founders, employees and investors. The equity capital that is conserved in this process can then be freed up and used to fund other strategic growth initiatives such as new product development, hiring, M&A, etc.

Conventional debt, venture debt, and credit facilities all have fixed cash repayment terms and schedules regardless of the business performance. What is unique about PvX Capital is that its repayment terms are entirely tied to the performance of new user cohorts acquired only during the financing period. What this means is that PvX takes on the downside risk alongside the company in case of any underperformance in the cohort performance.

Despite taking on downside risk of user acquisition, unlike equity, PvX’s returns are capped up to a pre-agreed threshold (e.g. 1.05x of the capital deployed). Beyond the return cap, 100% of the remaining customer LTV accrues directly to the company.

PvX Intelligence is a machine learning driven database that collects and analyzes data from gaming and consumer businesses to determine the viability of a business to take on PvX Capital. The analysis involved in the underwriting process feeds intelligent models that predict the future outcomes of live cohorts across various types of gaming and consumer businesses.

PvX Intelligence is used as a cohort verification and prediction tool for business operators and a diligence tool for investors. Contact a PvX Partners representative to learn more about how you can use this powerful database.

Yes, PvX Capital can be used if you have existing debt on your balance sheet. An intercreditor agreement between PvX Partners and the existing lender must be executed before financing can take place.