Viola Credit launches $300 million fund to finance customer acquisition for B2C startups
New vehicle treats marketing spend as a growth asset, offering non-dilutive credit based on unit economics.
Viola Credit will provide $300 million in credit through a new vehicle called Customer Growth Financing, Calcalist has learned. The fund will invest amounts ranging from several million dollars to sums that could reach hundreds of millions.
The fund will offer dedicated credit solutions to companies developing consumer-facing products and services (B2C), financing direct marketing expenses for customer acquisition, known as Customer Acquisition Cost (CAC Financing), while tailoring financing terms to each company’s performance and the economic value of its customer base.
In a conversation with Calcalist, Managing Director Elad Friedman explained that the fund has already completed several such transactions, but this marks the first time it is launching a dedicated instrument specifically for financing marketing activities of B2C companies.
“We will provide credit to fintech, gaming, and insurtech companies, as well as businesses developing LLM-based applications,” Friedman said. “The fund has already executed transactions worth millions of dollars, and, like all of Viola’s credit funds, it will enable loan refinancing, thereby expanding the fund’s capacity. Demand appears to exceed the amount initially allocated, and we will have no difficulty raising additional capital to support these companies. Unlike our other funds, the collateral here is the revenue generated through the companies’ marketing activities.”
Viola Credit’s new initiative treats customer acquisition costs as a measurable growth asset rather than an operating expense, enabling companies to finance expansion based on clear unit economics and predictable return on investment. The model provides non-dilutive financing, allowing entrepreneurs and shareholders to accelerate growth efficiently without eroding ownership.
In its first phase, the activity will focus on the Israeli market, with plans to expand to additional regions in which Viola operates, including the United States, Europe, and Australia. Israel is considered a global B2C powerhouse, with more than 2,000 active companies. As both local and international markets grow, companies are required to make significant investments in customer acquisition, costs that are often financed through expensive equity rounds or general-purpose credit solutions that are not designed for this need. Viola Credit offers a dedicated alternative: growth financing aligned with real performance, while sharing risk and upside with borrowers. The model enables companies to direct free capital toward product development, technology, and talent, without compromising growth momentum or capital structure.
The Israeli market alone is estimated to generate over $3 billion annually in direct marketing expenses for customer acquisition. Viola Credit plans to allocate $300 million to this activity in Israel over the next two years. The fund will work with B2C companies that demonstrate a proven business model and predictable growth metrics across sectors including apps, gaming, e-commerce, finance, insurance, healthcare, and more.
Viola Credit is a global debt fund specializing in financing technology and growth companies through asset-based lending solutions. The fund currently manages more than $4 billion in assets and recently announced the launch of two new funds: one of approximately $2 billion focused on financing fintech platforms, and another of approximately €300 million dedicated to providing credit to European companies. Viola Credit maintains offices in Tel Aviv, New York, and London, with an active investment portfolio across 10 countries.
