Russian home cinema startup Multibutik — also known as Cinemood — has secured a $5 million loan from factoring company GameBoost42.
Now headquartered in San Francisco, this startup is one of Russia’s most hyped international startup success stories. It has developed mini cinema projectors for children, including a cloud-connected one that can project content onto any surface.
Cinemood offers expertly curated content so that users can pick from movies, cartoons, audio stories, digital books and fairytale adventures, according to the company.
“This wireless and totally portable projector for kids means that spontaneous movie nights outside on the side of the house are completely possible,” Mashable wrote a few years ago, reporting on “the coolest gadgets for Generation Z.”
The fresh funding will be used to support the company’s marketing and production expenses, as well as its further commercial expansion in the USA and Europe.
This factoring deal, which covers all future company sales, is presented as a first on the Russian startup market. “This financing scheme will allow us to scale up our sales without equity funding in the next two years,” said Cinemood General Director Mikhail Bukhodtsev.
Cinemood previously secured several rounds of funding in more standard forms, including $2.5 million in 2017; $4 million in late 2018; and $2.9 million in August 2019.
A Cyprus-based company with Russian roots, GameBoost42 is part of the GamesUp42 holding. It provides loans of up to $2 million at rates starting from 2.2% monthly.
Sources: RVC, East-West Digital News
