Revenue based Financing Platform, Novel Capital, Announces $115M in Funding

Novel Capital, a Fintech firm helping businesses accelerate growth, came out of stealth with $115M in initial equity and debt funding.

Via its online platform, Novel Capital offers “an alternative funding method to entrepreneurs that is simpler and less risky than bank debt and does not require founders to give up equity or control.”

Entrepreneurs seeking capital “often find that there are no realistic options for their company given the cost, time and equity dilution associated with fundraising.”

But the Novel Capital platform “allows entrepreneurs to leverage their recurring revenue in exchange for on-demand access to non-dilutive capital at the right time.”

Depending on where they are at in their entrepreneurial journey, companies “can partner with Novel Capital to accomplish a number of business goals,” including:

  • Bridge Between Funding Rounds: Accelerate to milestones for a higher valuation.
  • Accelerate Growth: Immediately invest in necessary sales and marketing resources.
  • Support New Customers: Hire more staff to meet the needs of new clients.
  • Smooth Cash Flow: Ease predictable cash shortages for seasonal and / or cyclical businesses.

Novel Capital CEO and Co-Founder Carlos Antequera stated:

“Prior to co-founding Novel Capital, I was the CEO of an edtech SaaS company, and like many other entrepreneurs, my company could not attract the capital we needed to accelerate our growth despite our growing customer base and recurring revenue. This experience made me realize the need for a company like Novel Capital. We want to provide simple, fair access to on-demand capital and support, so that entrepreneurs can focus on business growth, not fundraising.”

Novel Capital provides two revenue-based financing products which “give entrepreneurs on-demand access to the type of capital that best meets their current and future business needs.”

  • RevShare Capital™: Gives companies up to 30% of their expected annual revenue today, in exchange for a percentage of future monthly realized revenue for the next 36 months.
  • Upfront Capital™: Gives companies instant access to future subscription revenue for one simple upfront fee.

Entrepreneurs seeking funding simply “submit their basic company information and connect financials and bank accounts on Novel Capital’s online platform.”

From there, Novel Capital will “analyze key company data points to determine the appropriate amount of capital they can receive.”

Once a company is approved and on the Novel Capital platform, it can “access additional capital on-demand as they continue to grow and generate more revenue.”

Novel Capital “believes that capital itself is not enough to drive growth, which is why the company combines capital, resources, and support in a single online platform.”

In addition to financial metrics, Novel Capital “takes into account a company’s goals to ensure that they provide entrepreneurs with the appropriate capital and support to reach their full potential.”

Keith Harrington, COO and Co-Founder, Novel Capital, remarked:

“Bank debt and venture capital have their place, but the non-dilutive and low-risk nature of our capital is often what best meets the needs of growing companies that are building value for their investors. As a former VC, I often saw entrepreneurs struggle to make difficult fundraising decisions. That’s why at Novel Capital we strive to help companies understand how to select the right type of capital for their needs.”

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