Percent is excited to welcome Hum Capital to our platform. Hum Capital connects companies with data-driven investors who specialize in providing up to $50M in financing based on companies’ financial performance. Hum is backed by significant venture firms and strategic investors including Cowen and Company (now TD Cowen), Future Ventures, Invesco Private Capital, Partech, Wavemaker Partners, Webb Investment Network, and a well-known global credit rating agency.
Hum was founded in 2019 with the goal of creating a “Kayak.com for private capital” that would create live integrations into companies’ accounting and finance cloud-based software systems, to provide perfect visibility into the financial health of a business before, during, and after financing. This data-driven approach also allows every qualified company to be able to raise the capital they need to grow without bias or friction.
Deal Origination & Real-Time Financial Analytics
Hum’s origination engine sources high-growth companies across a diverse range of industries and geographies. Some of these industries include (but are not limited to) software, financial services, business services, and retail.
Real-time financial analytics are powered by Hum’s two-sided fundraising platform, the Intelligent Capital Market. Companies connect their business systems of record (Quickbooks, NetSuite, etc.) to the platform, and AI and machine learning analyzes the company’s performance data. “Investor-ready” insights and analytics, including LTV:CAC trends, customer concentration and cohort analysis, help the company understand how much and what type of capital they can raise based on their current performance.
As a two-sided platform, Hum provides deal flow to investors that is pre-screened and specifically meets their underwriting criteria, often from companies that are just beginning their fundraising process. Investors receive access to and use the real-time financial analytics of companies that meet their investment thesis as part of their diligence process.
Tailored and Creative Financing Solutions
As the Kayak.com for private capital fundraising, Hum offers a single destination where companies can explore all their financing options and choose the best option for their business. Rather than pushing companies to a single investor or financing vehicle, Hum’s platform helps companies evaluate all their options and the potential impact on their business-like cash flow, total cost of capital, and ownership stake. Companies can also work with Hum to create a bespoke financing solution.
Additionally, Hum can provide tailored financing products such as revenue-based financing, venture loans, and lines of credit to companies with $2-50 million in run-rate revenue that meet the specific underwriting criteria approved by a large institutional investor.
To date, Hum has arranged over $700 million of financing for private growth companies through its Strategic Capital and Capital Markets businesses.
Diligence with a Difference
Hum Capital uses a programmatic screening process, supplemented by analyst review and diligence, to originate direct private credit transactions at scale. After screening, data-driven diligence is executed through a live integration into the company’s business software. This both provides unparalleled diligence capabilities for investors while also dramatically simplifying the diligence process for companies.
After a transaction is proposed with provisional terms, final diligence takes place including checks through third-party legal counsel.
Throughout, Hum Capital’s platform allows a sponsor to directly connect to a company, giving them real-time access to the company’s system of record, bank accounts and financial statements, and billing systems. This provides ongoing validation of the company’s financials and enables sophisticated portfolio monitoring and dynamic exposure management.