SanloA San Francisco-based fintech startup that offers small-to-medium gaming and app companies access to tools to manage their finances and capital to drive their growth has raised $10 million in a funding series led by Konvoy.
The startup was founded in 2020 by CEO Olya Kaliuzhnaya and CTO William Liu, who both have fintech and gaming backgrounds. Sanlo offers companies access to the technologies, tools and insights to help them achieve scalable growth. When Sanlo determines that a business can benefit from an allocation of capital, the startup helps by offering funding. Sanlo notes that this is not a venture fund that receives capital in exchange for financing, nor is it a lender that charges compound interest. The amount of funding provided varies, but it is not dilutive capital, which means that Sanlo has no ownership interest in the companies it finances.
Kalyuzhnaya told TechCrunch that one of the things Sanlo is different from other fintech companies is its focus on games and app developers. She noted that while there are other companies that focus on other e-commerce or SAAS verticals, Sanlo is focused on games and consumer applications.
“We are a technology company, not a fund,” Kalyuzhnaya said. “This allows us to act quickly and be transparent about how we operate and how we get the products we create and offer to customers. We also create a full range of products, and it’s not just about capital growth. Developers have other options through publishers, venture capitalists and banks, but these usually involve complex and lengthy processes.”
Sanlo first asks companies for certain types of data, including product data about how well an app or game is monetizing. Sanlo also receives customer acquisition and retention information, as well as marketing data and a subset of financial data. Forecasting algorithms then continuously monitor the company’s growth trajectory to gain insights to determine where and how the business can grow. Sanlo then provides companies with access to capital.
As for the new funding, Kalyuzhnaya said Sanlo will use the money to build more developer products and bring in more people to expand its 15-person team.
“The plan is to create more products and strengthen the team,” Kalyuzhnaya said. “We are looking for passionate people who will help us build better and faster. Right now we’re working with people primarily in North America, but we’re open to talented people from other places around the world.”
The funding round was attended by existing investors, including Initial Capital, Portag3 Ventures, XYZ Venture Capital, London Venture Partners and Index Ventures. New investors also participated in the funding round, including Fin Capital, GFR Fund and a number of business angels. Funding for the Sanlo Series A came in a year after that. announced $3.5 million in seed funding co-led by Index Ventures and Initial Capital.
As part of the funding announcement, Sanlo also revealed that it is partnering with HCGFunds to expand its capital pool to $200 million to provide funding to the developers it works with.
Sanlo has spent the past 12 months training selected developers and is currently working with dozens of companies. Kalyuzhnaya said the company carefully selects companies to work with and reviews them regularly to ensure close collaboration. In one case, Sanlo said it helped a major game publisher who wanted to consolidate and gain insight into cash flows from multiple platforms. The company also helped a subscription-based consumer app developer in need of additional financial bandwidth to recruit economy designers to tighten monetization. In another case, Sanlo helped another game developer who was looking for predictable non-dilutive capital to finance the development of an expanding portfolio of games.
Credit: techcrunch.com /