Pollen VC just announced their Definitive Guide to Selecting a UA Financing Partner. This 24 page guide gives an overview of all of the different models that have emerged over the last few years for funding mobile user acquisition.

Martin Macmillan, CEO at Pollen VC commented “We created this guide as we continue to come across a lack of understanding of how some of these models work, and in particular how to compare pricing.”

The guide offers an explanation of how each of the models works and highlights the pros and cons of each one. The financing models covered are:

• Revenue Based Loans
• Factoring
• Bank Credit Facilities
• Revolving Credit Facilities/Residual Cohort Lending
• Publisher funded UA

Included within the guide are links to various calculators created by Pollen VC which enable studios to better understand the pricing terms offered by some of these models to break costs down to a simple interest basis for easy comparison.

Studios are increasingly using debt based instruments for funding user acquisition which means they have to rely on venture capital funding. Debt funding does not dilute founders equity so it is seen as a more capital efficient way to fund growth via paid user acquisition, and is used by studios as a part of their overall capital mix alongside VC funding.

The guide is available for download at https://pollen.vc/ua-financing-partner-guide/

By Gamesforum Staff