OAREX Capital Markets offers up to $5M per month in growth capital to digital media companies. OAREX, through its fund, buys invoices from these businesses at a discount.
OAREX focuses on funding publishers, apps & mobile games, ad networks, ad agencies, ad tech, and mar-tech companies. The funding is cheaper than VC or private equity money because it’s a one-time fee. OAREX is backed by Arena Investors, LP, a $1B+ New York City based global investment firm.
The Product
OAREX offers $10k-$5M in monthly funding. They do not make loans or investments in their portfolio companies. “We buy the invoice from you, and take it right off your balance sheet,” said founder & CEO Hanna Kassis. “Then we get paid by your customers instead,” added Kassis. “It’s a great alternative to selling equity or debt,” he added. OAREX funds are non-dilutive and do not require a personal guarantee, making it attractive to up-start, rapidly growing businesses. “You need the capital, we’re there for you.” OAREX provides funds on a daily, weekly or monthly basis, against recent earnings of the business, and takes all the risk of non-payment.
Credit Data
Since OAREX assumes the risk that the invoice will not be paid, they’ve collected a wealth of credit data on the advertising ecosystem. OAREX makes this data available to the public, via its Project Rank, and publishes a quarterly payments report. Digital media companies can use this data to research OAREX’s first hand collection history with companies. This provides insight into whether a company has the ability to pay or not, protecting companies from doing business with those who have a poor payment history.