What we do / Growth financing
Growth capital that does not cost you the company.
Royalty and revenue-based financing for software, IT and technology-enabled service companies with recurring revenue. You repay a fixed percentage of monthly revenue until an agreed cap. No dilution, no board seat.
Who it fits
Facilities from EUR 1m to EUR 10m. Companies with at least twelve months of revenue, gross margins above 60% and predictable monthly billing. Typically used to fund growth ahead of a priced round, to bridge to profitability, or to avoid a round altogether.
How it compares
| Equity round | Bank loan | Royalty financing | |
|---|---|---|---|
| Dilution | Yes | No | No |
| Time to funding | 4-6 months | 2-3 months | [X-Y] weeks |
| Collateral | None | Assets, often personal | Revenue only |
| Repayment | None | Fixed monthly | Percentage of revenue |
| Board seat or consent rights | Usually | Sometimes | No |
| Best when | Step change in scale | Stable, asset-heavy | Growing, recurring revenue |
Ownership calculator
Enter how much you need and your current valuation. See what you keep after three years with an equity round versus royalty financing.
Equity round
87.0%
founder ownership after three years
€54,880,000 of value retained
You keep 87.0% of a company worth €63,112,000 in year three.
Royalty financing
100.0%
founder ownership after three years
€58,612,000 of value retained
You keep the whole company and repay an illustrative cap of €4,500,000 from revenue.
Illustrative only. Assumes a single round, no follow-on dilution, an illustrative repayment cap of 1.5x the facility and constant growth. Not an offer of financing and not advice. See the disclaimer.
How it works
- 01
Conversation and data request
One week
We look at revenue history, margin and billing predictability before anything else.
- 02
Term sheet
Two weeks
Facility size, percentage of revenue, cap and conditions on one page.
- 03
Confirmatory review
[Three to four] weeks
Confirmatory review and documentation.
- 04
Funding
Then monthly
Monthly reporting from then on; nothing else changes in how you run the company.
Questions we get asked
- Is this debt?
- Legally it is a financing agreement with a revenue-linked repayment. It does not carry equity and it does not require you to hit a fixed instalment in a slow month.
- What happens if revenue drops?
- Your payment drops with it. That is the point of the structure.
- Can we combine it with a later equity round?
- Yes, and most clients do.
Tell us about the company. We will tell you what we would do.
A 45-minute conversation with a partner. No deck required.