Questions we get
asked frequently
Get in touch if you have any questions you cannot find the answer to.
Yes, as long as we can acquire a substantial percentage (5% or more) we are open to discuss secondary transactions.
Yes. Capital Mills usually participates pro rata in follow-on rounds (but will be decided each case seperately). The beauty of the Revenue-based financing is that as your company grows, you can unlock more funding capacity and apply for another oan.
An equity investment process usually takes 2 to 3 months. Due diligence and contracting take more effort and time and usually more parties are involved. A Growth Loan can be provided within 4 weeks.
If you know what you want - that's great. If you are not sure about you funding plans, do not hesitate and discuss. We are happy to share our opinion. Generally speaking, equity is the most expensive form of capital and can best be deployed for companies that follow a venture capital - moonshot - strategy or to fund a secondary transaction. Growth loans are perfect for relatively small growth investments.
If your company is successful, equity is extremely expensive - with annual cost of over 100%. The cost of a Growth Loan are (for 80% of loans) between 12 and 18%.
Raising considerable amoounts at a relatively low valuation leads to heavy dilution. This can cause serious problems along your journey. Your company can become un fundable if founders own less than 50% of the shares before series A.
