Revenue-Based Funding Platform Novel Capital Announces $115M in Funding to Transform How Companies with Predictable Revenues Fund Their Growth
Novel Capital is an innovative growth platform, providing online capital and resources to enable businesses with recurring revenue to accelerate their growth
KANSAS CITY, Missouri, March 17, 2022 (GLOBE NEWSWIRE) — capital of the novel, a fintech company that helps companies accelerate their growth, came out on the sly today with $115 million in initial equity and debt funding. Through its online platform, Novel Capital offers entrepreneurs an alternative financing method that is simpler and less risky than bank debt and does not require founders to relinquish capital or control.
Entrepreneurs seeking capital often find that there are no realistic options for their business given the cost, time, and equity dilution associated with fundraising. However, 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 the stage of their entrepreneurial journey, companies can partner with Novel Capital to achieve a number of business goals, including:
Bridge between financing rounds: Accelerate milestones for higher valuation.
Accelerate growth: Invest immediately in the necessary sales and marketing resources.
Support new customers: Hire more staff to meet the needs of new customers.
Smooth cash flow: Ease predictable cash shortages for seasonal and/or cyclical businesses.
“Prior to co-founding Novel Capital, I was the CEO of an edtech SaaS company, and like many other entrepreneurs, my business couldn’t attract the capital we needed to accelerate our growth despite our growing customer base and our recurring revenue,” Novel said. CEO and co-founder of Capital, Carlos Antequera. “This experience made me realize the need for a company like Novel Capital. We want to provide easy and fair access to capital and on-demand support, so entrepreneurs can focus on growing the business, not raising money. »
Novel Capital offers two revenue-based financing products that provide entrepreneurs with on-demand access to the type of capital that best meets their current and future business needs:
RevShare Capital™: Offers businesses up to 30% of their projected annual revenue today, in exchange for a percentage of future monthly revenue earned for the next 36 months.
Initial Capital™: Gives businesses instant access to future subscription revenue for a simple upfront payment.
Entrepreneurs seeking funding simply submit basic business information and connect financial and bank accounts on Novel Capital’s online platform. From there, Novel Capital will analyze the company’s key data points to determine the appropriate amount of capital it can receive. Once a business is approved and on the Novel Capital platform, it can access additional capital on demand as it continues to grow and generate more revenue.
More than capital
Novel Capital believes that capital itself is not enough to drive growth, which is why the company combines capital, resources and support in one online platform. In addition to financial metrics, Novel Capital takes into account a company’s goals to ensure it provides entrepreneurs with the right capital and support to reach their full potential.
“As a former VC, I’ve often seen entrepreneurs struggle to make tough fundraising decisions. That’s why at Novel Capital, we strive to help companies understand how to select the type of capital that suits their needs,” said Keith Harrington, COO and co-founder of Novel Capital. “Bank debt and venture capital have their place, but the non-dilutive, low-risk nature of our capital is often what best meets the needs of growing companies that create value for their investors.”
To learn more, visit Novel Capital’s website and follow the company on Twitter and LinkedIn.
About Novel Capital
capital of the novel is an online platform that provides growing software companies with non-dilutive capital to scale faster and take advantage of market opportunities. Novel Capital’s revenue-based financing products offer transparent pricing and flexible terms with no time commitment, dilution, loss of control, personal guarantees or guarantees required for venture capital or commercial loans. Founded in 2020, Novel Capital has already funded 55 companies in various verticals.
Media contact: Jon Keller, [email protected]