We have developed our offering on our experience investing in more than 60 startups since 2012 and have come to the conclusion that RBF is the better alternative for most startups and, consequently, for investors as well. Sometimes however, equity is preferable. We invest equity in (late-) seed rounds and follow on in series A.
Funding of your growth strategy with tickets from € 100k up to € 2M
Up to 4x MRR or 40% 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?
We support a wide range of online businesses
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 running at 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
* Residence: We currently provide RBF to EU based companies only
HOW IT WORKS
Setting you up for succes in three steps:
We start by scheduling a call
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 RBF, 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?
Trusted by some of the greatest startups in The Netherlands
“A STRONG PARTNERSHIP”
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.
“Edumundo is not just any scale-up, the company has been around for more than 20 years. In the last 5 years, however, we have gained momentum. This acceleration does not only require fresh growth capital, but also a listening ear and a team that can think along and, above all, take account of it. Capital Mills can do this like no other and does not lose sight of our rich history. With respect for current shareholders and financiers, they have been able to perfectly support the most recent piece of growth through Revenue-based Financing.”
“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.”
4201 JA Gorinchem
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