Novel Capital raises $115m in equity and debt funding

Revenue-based financing platform Novel Capital has emerged from stealth with $115 million in initial equity and debt funding.

Novel Capital CEO Carlos Antequera

The Missouri-based fintech allows entrepreneurs to leverage their recurring revenue to access non-dilutive capital.

Entrepreneurs seeking funding submit their company information and connect financials and bank accounts on Novel Capital’s online platform.

The platform then analyses key company data points to determine the appropriate amount of capital they can receive.

This capital can support companies in between funding rounds, help accelerate growth or ease cash flow problems.

Novel Capital offers two revenue-based financing products. One gives companies up to 30% of their expected annual revenue in exchange for a percentage of future monthly revenue. The second gives companies access to future subscription revenue for one upfront fee.

Novel Capital CEO Carlos Antequera says: “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.”

Novel Capital chief operating officer and co-founder Keith Harrington adds: “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.”