Revenue-based financing platform Novel Capital has emerged from stealth with $115 million in equity and debt funding.
Novel Capital's online platform enables entrepreneurs to leverage their recurring revenue in exchange for on-demand access to non-dilutive capital, providing an alternative to fundraising.
The firm is offering two models: one giving companies up to 30% of expected annual revenue upfront in exchange for a percentage of future monthly realised revenue for 36 months. The other gives firms instant access to future subscription revenue for a one upfront fee.
Companies submit their basic information and connect financials and bank accounts on Novel Capital’s online platform. From there, the startup analyses key company data points to determine the appropriate amount of capital to offer.
Keith Harrington, COO, Novel Capital, says: “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.”
Capchase, which operates a similar model, has worked with nearly 3000 companies across the US and Europe since launch in 2020, making over $2 billion in funding available to founders.