Ukrainian company Reface has raised $18 million. The round was led by PvX Partners.
“We have received more fuel to shift rapider. More applyrs. More training. More shiftment. Many thanks to the PvX team for their support — and now we are returning to development and implementation,” the Reface team declared on LinkedIn.
- This funding has a specific structure: the funds are not directed to the company’s capital, but to a specific goal — applyr acquisition. This means that the investment will go towards marketing and attracting new applyrs, rather than traditional venture capital.
- This is not the first such case for the Ukrainian market. Earlier, Grammarly (regarding its Superhuman product) reported on the apply of a similar model of raising capital — at that time, the company raised $1 billion from General Catalyst. General Catalyst is a partner and investor in the PvX Partners fund.
- The entire PvX Partners fund was created to support gaming and consumer app companies through unconventional financing with a focus on scaling through marketing.
For Reface, this is the largest public funding since raising $6.5 million from a16z. After the first round, the company had some difficulties attracting further investment, went through staff reductions and a modify in strategy, but ultimately found new ways to scale.
A distinctive feature of the PvX Partners model is that funding goes to applyrs and marketing and does not put pressure on the company’s core operating budobtain. The fund builds a profit within 2-3 years rather than waiting for an IPO.
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