Growth capital for Saas and eCommerce
Capital Mills provides Revenue-Based Financing (RBF) based on your recurring revenue. Alternatively, our equity can supercharge your growth.
With Capital Mills' tailor-made financing, we prevent fundraising gone wrong. No heavy dilution or issues with shareholders you would rather prevent.
Having been entrepreneurs and software developers ourselves, we know how important it is that funding serves the company's strategy and not the other way around.
Our tailor-made financing gives you the best of both worlds. With Revenue-Based Financing, you get funding without giving away too much of your company and have flexible repayments based on a fixed percentage of your monthly revenue, until a repayment cap is reached instead of brutal fixed repayment schedules and personal guarantees. Combined with the power of Equity funding which enables you to get a powerful boost in accessible capital.
Since 2016, we have invested + €20M in equity rounds and since 2019 have provided 12 RBF investments. We are thrilled we now have +€ 10M available to invest from our RBF - fund Fortibus 7.
Working with Capital Mills
We are hands-on. We bring a relevant network of investors and tons of experience in fast growing companies. We help you navigate your challenges. All of this on an 'if needed' basis and if not, we will simply have our monthly calls and an occasional beer....
What do we offer
Revenue-Based Financing
- Funding of your growth strategy with tickets from € 250k up to € 1.5M
- Up to 6x MRR or 50% of your revenue
- cash positive or on your way to break even
Equity
- Funding of your growth strategy from € 1Mup to € 2.5M
- Ideal for companies that want to get ready for series A venture capital or profitable growth
- B2B Saas, eCommerce
- No typical fund requirements, we can provide capital tailormade
Terms
- RBF means simple agreements with few strings attached. No personal guarantees
- Equity comes with common - extensive - legal agreements
- if you are successful RBF will cost you (on a yearly basis) 12% or more - equity will cost you upwards of 25%
Support
- We know how to get your funding right, now and in the future and are keen on helping you succeed
- Both investment team and investor base love good software - some of us can be your sparringpartner for your roadmap
- A network of seasoned entrepreneurs and investors are available for their network and knowledge
Is our funding right for you?
General
Companies that benefit most from RBF have a scalable and predictable business model with high gross margins (typically SaaS/ Internet) and need to invest in technology and/or marketing to grow
Profitability
Venture backed companies can use RBF to extend their runway. Bootstrapped companies that are (on their way to become) profitable can use RBF for the final push to get the growth engine runningat full speed
Funding need
To be eligible for RBF, you need to have at least €25k in monthly (recurring) revenue. Follow up rounds of RBF can easily be requested thanks to our easy re-application process
Ownership and current financing
RBF is suitable for any company, regardless of ownership or current financing arrangements, although the terms & conditions of bankloans or shareholder agreements may need to be addressed
How it works
Setting you up for succes in 3 steps
INTRODUCTORY CALL
We start by scheduling a call. Goal of this call is to get to know you, and for you, to get a feeling who you are dealing with. We love to see a demo of your product and broadly discuss your plans.
TAILOR-MADE QUOTE
If the conclusion of the call is that a Revenue-Based Financing might work for your company and you like our approach, we can take the next step and dive into your numbers. We will run your bank accounts and businessplan through our financial model and get back to you with a tailor-made quote and advise on your funding. If the best way forward is equity, we work towards a termsheet.
START FUNDING
The third step in this process is getting to a final agreement and make your funding tailor-made to your needs. For RBF this takes up to 4 weeks, for equity investments, a longer timeframe is needed.
What comes next?
RBF comes with a flexible repayment based on a fixed percentage of your monthly revenue, until a repayment cap is reached. That’s it as far as the financing is concerned
On a monthly or quarterly basis, update calls will be scheduled to keep us all aligned and to help you to the best of our abilities with advise and network access
Pricing
One of the first things we do is analyze your funding need, your cap table and the role RBF can play. Maybe we can finance all of your growth funding need or maybe a combination with a traditional bank loan and/or equity does the trick. We will surprise you:
- Transaction costs are between 5 to 10 times lower than for Venture Capital
- In the long term, equity financing is significantly more expensive due to dilution
- A fraction of the time required to obtain equity financing, time better spent building your company
Our offer indicates the maximum RBF amount you can lend, the % of your cash revenue required for repayments, the proposed duration and the repayment cap. Since payments vary, a comparable interest cost can only be determined afterwards, but would typically be starting at 10%.
Why work with us?
Capital Mills is your advisor and partner, without getting in the way.
We are former entrepreneurs and angel investors, which helps us understand you and your business. We love to see young companies become the backbone of Europe’s economy: strong, innovative and profitable SME’s will be much needed to maintain what is good in our society and to fix what is broken.
Trusted by some of the greatest startups in the Benelux
Camiel Kraan
CEO Convious
“Our collaboration with Capital Mills has been excellent from the start. With their hands on support, network and knowledge, they have made a major contribution to the rapid development of Convious.”
Udesh Jadnanansing
CEO Mopinion
“Organic growth is fine, but it sometimes takes too long, especially when you see that there is an enormous opportunity to scale up quickly. Money is needed for that. We obtained a Venture Capital investment and Revenue-based Financing from Capital Mills and that has greatly helped us accelerate growth.”
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