Braavo Capital has committed more than $60 million to user acquisition cohort financing facilities in 2026, expanding its non-dilutive funding platform for mobile app and game companies.
The New York-based company provides committed capital that customers can draw as they spend on user acquisition. Rather than structuring advances against an entire company’s revenue or balance sheet, Braavo scopes each advance to a specific user acquisition cohort and is repaid from the revenue generated by that cohort.
Braavo said the model allows mobile companies to fund advertising and customer acquisition without using equity capital for those expenses. The financing is designed around the economics of individual cohorts, including expected return on advertising spend, revenue generation, and the way customer acquisition performance develops over time.
Recent commitments include $15 million for children’s tutoring app Buddy.ai and $15 million for AI-powered skincare app Lovi.
Buddy.ai has worked with Braavo since 2019 and previously completed six user acquisition financing transactions with the company. The latest facility provides the business with committed capacity that can be used to plan a longer period of customer acquisition spending while preserving equity for product development and hiring.
Lovi closed its facility in June and has since tripled its advertising spend. Braavo said its underwriting process combines data integrations with analysis of subscription economics to develop financing structures tailored to individual customers.
The company positions its experience underwriting mobile app businesses as a key part of its ability to assess how user acquisition can scale and how return-on-ad-spend curves may change as spending increases.
Founded in New York City in 2015, Braavo Capital focuses on non-dilutive financing for mobile application companies. The company said it has tracked more than $5 billion in app earnings across 10,000 applications and more than $1.5 billion in user acquisition spending.
The more than $60 million committed this year adds to Braavo’s broader effort to give app developers and publishers an alternative source of growth capital specifically tied to customer acquisition performance.
KEY QUOTES:
“The mechanics of cohort financing aren’t complicated. The harder part is understanding how a company can scale user acquisition, how its ROAS curves will evolve over time, and how much flexibility you can responsibly build into a facility. Our experience lets us structure around a customer’s actual economics rather than starting with a predetermined template.”
Mark Loranger, CEO Of Braavo Capital
“Even when we considered alternatives for a larger cohort financing facility, Braavo still came out on top. Seven years in, I know how they work and even what to expect if something doesn’t go to plan.”
“A committed facility means we can scale user acquisition without tying up equity to do it. We know the terms, we know how the cohorts have to perform, and we can plan a year of user acquisition instead of a quarter. Equity goes into the product and the team.”
Ivan Crewkov, CEO Of Buddy.ai
“I was really impressed with Braavo’s analytical capabilities, the depth of their understanding of the subscription business, and how quickly they developed financing terms tailored to our specific needs. Their integration layer and experience meant they could move quickly as soon as they received our data. It was smooth sailing, and that gave me confidence that we were working with a partner who really understood our business.”
Alexey Shagraev, CEO Of Lovi
