Sugar Cap raised £1.5 million in a pre-seed capital round led by Passion Capital.

Sugar Cap, a London, UK-based startup building a platform for providing financing to gaming studios, announced that it secured funding in a pre-seed capital raise of £1.5 million ($1.9M).

The money was raised from investors led by Passion Capital joined by Velo Partners and Victoria van Lennep from Lendable. Proceeds will be used to fund the company's growth as it aims to expand the team and make the platform more available.

Sugar, which stands for “Scale Up your Games and Apps Revenue”, founded in 2019 and led by CEO Matt Frenchman, provides marketing capital to studios with positive unit economics to scale up, without them having to raise equity finance.

The company uses quick, fully automated decisions made via its primary product, SugarBoost, a data driven marketing loan to scale up a studio’s revenues. In addition, the company also offers SugarFlow, which gives studios early access to their digital revenues and SugarCap, which advances the studios their VGTR credits (video games tax relief, an HMRC rebate similar to R&D credits), which can normally take months to process.