Pollen, a new financial technology company based in London and San Francisco, announced it will distribute more than $150 million of what it calls “Velocity Capital” in 2014, to enable developers to gain quicker access to the cash made by apps.
Developers can wait up to 60 days to be paid for their app sales or in-app purchases in major stores, but Pollen claims it will be able to pass on 95 per cent of the proceeds every seven days – easing cash flow issues for smaller players.
Once developers are accepted by Pollen, the company accesses their sales data directly from the relevant app store. It then uses this data to pay developers each week, and waits to receive funds directly from the app store provider.
This means companies could reinvest revenue back into their business more quickly, enabling them to speed up user acquisition and product development.
Pollen is initially working with developers in the US and UK.
The company also offers an automated financial platform which developers can use to keep track of their account activity.
Pollen is currently operating a closed beta programme with several venture-backed start-ups benefiting already.
“So far, we’ve seen exceptional demand for our early beta, both from app developers, but also venture capital firms who recognise that velocity capital can help their portfolio companies to deploy capital more efficiently,” said Martin Macmillan, the CEO and co-founder of Pollen.