Invest in companies that generate revenue every month
Please note, this fund is not suitable for everyone:
Trusted by 40+ European startups since 2015
Access to a diversified portfolio of private loans
Capital Mills Fund 2 will provide loans to 20–40 companies. These are companies with a minimum turnover of €1 million, a high gross margin and a subscription model – in other words, recurring revenue. For the entrepreneurs, the loan serves as a form of growth capital and, despite the high costs (around 15%), is a good alternative to venture capital.
Diversification for investors
Investing in Capital Mills Fund 2 offers investors a way to diversify their portfolio: there is no correlation with the stock markets, property valuations or bond markets.
The fund does not provide loans to private equity funds (so there are no unintended additional risks apart from business risk) and there is no leverage at fund level.
Attractive returns that are also distributed
Capital Mills has been active in private credit since 2019. The average return over that period is 9% after corporation tax and is considered by many investors to be attractive relative to the risk, particularly as returns are distributed monthly.
Past performance is no guarantee of future results.
Strong progress for Fund 2
Fund 2 is already up and running.
To date, 25 investors have invested €11 million. Six loans from Fund 2 have already been backed.
The target fund size is €25 million. The final close is scheduled for early June 2026.
A fund that meets the needs of tech growth companies
For technology companies with a turnover of €1 million or more, a Capital Mills loan is an attractive alternative to venture capital. Venture capital is expensive, cumbersome and time-consuming. A Capital Mills loan can be arranged within a month.
The loans have a term of up to 60 months and, in terms of risk, fall between equity and bank financing. This is also reflected in the interest rate. Despite the relatively high costs, the major advantage is that a relatively small investment in technology or sales can be made quickly and more than pays for itself in turnover and/or enterprise value.
Want to know more? Download our fund’s factsheet.
How does revenue-based financing work?
A loan granted on the basis of revenue-based financing is based on a company’s cash flow. Unlike a traditional loan, interest payments and repayments are determined by paying a percentage of cash revenue until a so-called repayment cap is reached. If a company grows faster than expected, more is repaid and the return for investors increases.
Funding
Company secures growth funding
Refund
Fixed percentage of monthly turnover
Conclusion
The loan ends as soon as the target amount has been paid
Example
- Entrepreneur borrows €500,000
- Total repayment: €750,000
- Turnover-based repayment: 6%
- Maximum term: 48 months
Faster growth = faster repayment
Highlights fund 1
Proven track record in private credit
Fund 1 laid the foundations for our current strategy and demonstrates that the model works in practice.
Fund 1 was launched on 1 January 2023 and was fully invested within 34 months. Investors appreciate not only the returns, but above all the monthly distributions. This sets the fund apart from many other asset classes where capital is often tied up for years.
Following the first and second closings, the fund’s capital stands at €11 million. Six loans have already been granted from the fund. The next closing is scheduled for the end of March.
High investor satisfaction
90% of investors are choosing Fund 2 again
Capital Mills: an investment team and network
The current Capital Mills team has been working together for eight years and brings a wealth of business and investment experience to the table. Team members and investors know each other well and are in regular contact.
What makes us unique is that many of our investors are more than happy to share their networks and expertise whenever this would be of value to our portfolio companies, for example.
Frequently asked questions about Fund 2
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