Grow your business with non-dilutive capital
Revenue-Based Financing (RBF) for Startups, Scaleups and SME’s.
The most flexible, efficient and cost effective way to fund your company without giving up ownership.
Let us start with a quick story. Fundraising can go wrong in many ways. You end up heavily diluted, or with shareholders you would rather not have. Or both. Negotiations in which you sell your company as well as you can and investors want to get the best deal can lead to a marriage that is doomed from the start.
It need not be this way. Having been entrepreneurs ourselves, we were thrilled to see US startups increasingly being funded by RBF and decided we would introduce our own product in Europe. Simply by changing a key characteristic of a product - market combination, a lot of issues can be solved. Sounds like a startup right?
For good understanding. RBF does not work in every situation. Equity funding and RBF are instruments you can apply next to each other. We are happy to work with current or incoming investors and can invest equity as well in late - seed and series A rounds.
What do we offer
- Funding of your growth strategy with tickets from € 100k up to € 2M
- Up to 6x MRR or 50% of your revenue
- Few reporting obligations, time efficient cooperation
- Your financials and growth strategy determine specific terms
- We provide capital with few strings attached. No personal guarantees
- Most important is your commitment to your strategy, full transparency and honesty
- We will bring our knowledge, experience and network to the table
- We are not a bank. We will support you like a VC would, without the formalities
Is our funding right for you?
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
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
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
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.
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
The third step in this process is getting to a final agreement and make your funding tailor-made to your needs
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
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
“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.”
“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.”