Fintech lender Uncapped (website), which provides funding to startups without taking an equity stake, has acquired the app and gaming finance platform Sugar (website), a game and digital app maker. The acquisition gives Uncapped a foothold in the gaming and apps market. It’s the next step on the journey for Sugar, which secured a £1.5 million seed round led by Passion Capital and Velo Partners in 2020.
Sugar was founded by Matt Frenchman (LinkedIn), a former head of European equity sales at Credit Suisse (pictured left). As a result of the acquisition, Sugar will change its name to Sugar Powered by Uncapped. The platform offers game developers, and app studios access to fast, automated debt financing – something Uncapped says “fits well with its lending model.”
Matt Frenchman, CEO of Sugar, says, “Partnering with the team at Uncapped makes great strategic sense. We’ve made real progress in the games and app market and are excited to work with the Uncapped team to fund more great companies. Their approach to technology, financial expertise and huge geographic reach are awe-inspiring.”
Piotr Pisarz, CEO of Uncapped, added, “Uncapped exists to help founders win, so we are excited to help more companies get flexible funding quickly through this acquisition. In Sugar, we’ve found a like-minded team with a complementary business model and an equal passion for helping companies grow.”
Uncapped, founded in 2019, is a London-based financial services provider that offers European startups advances between £10,000 and £10 million. Rather than taking an equity stake in the companies it backs, the lender offers fixed-term loans or revenue-based financing, meaning entrepreneurs can retain control of their growing business.