Revenue-Based Financing Platform, Novel Capital, Announces $115M in Funding to Transform How Companies with Predictable Revenue Fund Their Growth

Novel Capital is an innovative growth platform, providing capital and online resources to enable companies with recurring revenue to accelerate growth

 

Kansas City, MO, March 17, 2022 Novel Capital, a fintech company helping businesses accelerate growth, came out of stealth today with $115M in initial equity and debt funding. Through its online platform, Novel Capital provides 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. 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 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.

“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,” said Novel Capital CEO and Co-Founder Carlos Antequera. “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 offers 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.

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 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.

“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,” said Keith Harrington, COO and Co-Founder, Novel Capital. “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.”

To learn more, visit Novel Capital’s website and follow the company on Twitter and LinkedIn.

About Novel Capital

Novel Capital is an online platform that provides growing software companies with non-dilutive capital to scale faster and capitalize on market opportunities. Novel Capital’s revenue-based financing products feature transparent pricing and flexible terms without the time commitment, dilution, loss of control, personal guarantees, or collateral required for venture capital or commercial loans. Founded in 2020, Novel Capital has already funded 55 companies across a variety of verticals.

 

Media contact: Jon Keller, jon@propllr.com