Novel Capital
Novel Capital provides non-dilutive revenue-based financing to B2B SaaS companies.
Novel Capital is a revenue-based financing platform serving early-stage B2B SaaS and subscription companies with $350K+ ARR. The company provides non-dilutive growth capital from $100K to $5M through two products: RevShare Capital (up to 30% of expected annual revenue) and Upfront Capital (8% upfront fee, 18% APR). Beyond financing, Novel's Capital Intelligence Platform offers strategic support in sales growth, talent acquisition, and operational planning, with founders able to access capital flexibly based on their approved credit facility (10-40% of ARR).
Problem solved
Early-stage SaaS founders with growing recurring revenue struggle to access growth capital without diluting equity or navigating lengthy VC fundraising processes.
Target customer
Early-stage to growth-stage B2B SaaS and subscription companies with $350K+ ARR, 10%+ YoY growth, and recurring revenue models seeking non-dilutive capital between equity rounds.
Founders
C
Carlos Antequera
Co-Founder & CEO
Former CEO of education technology company Netchemia (acquired by PeopleAdmin in 2015); experienced SaaS entrepreneur who faced capital constraints despite growing customer base and recurring revenue.
K
Keith Harrington
Co-Founder
Former venture capitalist and Kauffman Fellow with VC experience evaluating funding decisions for entrepreneurs.
Funding history
Growth Fund I
$12M
2017-2019
Led by Unknown
· Invested across 50+ portfolio companies by Q1 2022
Series Seed (Equity & Debt)
$115M
2022
Led by Community Investment Management, Nueterra Capital, Tenzing.vc
· Ulu Ventures, MatterScale Ventures
Pre-Series A
$15.8M
2024-02-23
Led by IGNIA Partners, Ulu Ventures
· MatterScale, Gaingels, KCRise Fund
Total raised:
$130M+
Industries
Pricing
RevShare Capital: up to 30% of expected annual revenue in exchange for percentage of future monthly revenue over 36 months. Upfront Capital: $100K-$5M advances with 8% upfront fee on monthly contracts over 12 months, 18% APR. Credit facility sized at 10-40% of ARR, drawn as needed. Minimum $350K ARR required.
Notable customers
Metric Insights (named testimonial), ABODO, Branching Minds, DivvyHQ, Elevate K-12, Gremlin Social, MyMajors, OpenReel, Passage, Precise Telehealth, Wisboo, Zype. 350+ total SaaS companies funded; $100M+ total capital deployed.
Integrations
Capital Intelligence Platform (proprietary real-time metrics analysis). Integration details not publicly specified.
Website
Competitors
Clearco
Similar revenue-based financing but broader market focus; Novel positions as more specialized in B2B SaaS with stronger operational support.
Pipe
VC-backed San Francisco platform offering revenue-based financing; Pipe targets broader market while Novel focuses on recurring revenue B2B SaaS with 10% YoY growth covenant.
Lighter Capital
Another RBF competitor; Novel differentiates through data-driven underwriting and Capital Intelligence Platform with strategic advisory.
Capchase
SaaS-focused RBF alternative; both serve similar market but Novel emphasizes operational support and founder success.
Founderpath
Founder-friendly RBF platform; Novel ranks 5th among 15 active RBF competitors with stronger institutional backing.
Why this matters: Novel Capital stands out for its explicit focus on underrepresented founders (47% of capital) and data-driven underwriting model that democratizes non-dilutive capital access for B2B SaaS founders. The platform's combination of flexible financing structures and operational support positions it as a bridge between bootstrapped growth and venture capital, addressing a real gap in founder funding options.
Best for: Series A-B SaaS companies with $350K+ ARR and 10%+ YoY growth seeking non-dilutive capital to hit product-market fit and scale without equity dilution.
Use cases
Bridge Between Equity Rounds
A Series A SaaS company with $1.2M ARR approaching Series B fundraising needs 6-month runway to hit growth targets. Novel provides $300K-$500K upfront to extend runway without new dilution, allowing founders to negotiate from strength in Series B discussions.
Sales & GTM Acceleration
An early-stage B2B SaaS startup has product-market fit but lacks sales infrastructure. Novel funds capital while providing sales expertise and talent support to scale customer acquisition, directly improving the metrics that unlock future equity rounds.
Underrepresented Founder Support
Novel targets founders from underrepresented backgrounds (47%+ of deployments support women and people of color) who face traditional VC bias, providing both capital and operational mentorship to accelerate growth pathways typically closed to minority founders.
Alternatives
Clearco
Broader market focus beyond B2B SaaS; choose Clearco for marketplace, e-commerce, or service businesses; Novel for pure B2B SaaS focus.
Capchase
SaaS-focused RBF with strong product UI; choose Capchase for seamless self-service experience; Novel for personalized underwriting and operational support.
Pipe
VC-backed with broader positioning; choose Pipe for venture-scale ambitions; Novel for founder-friendly terms and growth support without aggressive VC expectations.
FAQ
What does Novel Capital do? +
Novel Capital provides non-dilutive revenue-based financing to early-stage B2B SaaS companies with $350K+ ARR. Beyond capital, the platform offers strategic support through sales growth, talent acquisition, and operational planning via their Capital Intelligence Platform.
How much does Novel Capital cost? +
Upfront Capital charges an 8% upfront fee on monthly contracts over 12 months with 18% APR (1.1x-1.5x repayment cap). RevShare Capital exchanges up to 30% of expected annual revenue for a percentage of future monthly revenue over 36 months. Specific terms depend on ARR and growth profile.
What are the main alternatives to Novel Capital? +
Clearco (broader RBF platform), Capchase (SaaS-focused RBF), Pipe (VC-backed RBF), Lighter Capital (RBF competitor), and Founderpath (founder-friendly RBF). Each differs in market focus, pricing, and operational support.
Who uses Novel Capital? +
Early-stage to growth-stage B2B SaaS companies with $350K+ ARR, 10%+ YoY growth, and recurring revenue. Novel has worked with 350+ companies including Metric Insights, Branching Minds, DivvyHQ, and others, with 47% of funding supporting women and underrepresented founders.
How does Novel Capital compare to Clearco? +
Both offer revenue-based financing, but Novel specializes exclusively in B2B SaaS with a 10% YoY growth covenant and includes operational mentorship through their Capital Intelligence Platform. Clearco serves broader markets (marketplaces, e-commerce, services) with more flexible criteria but less tailored SaaS expertise.
Tags
revenue-based financing
RBF
non-dilutive capital
SaaS funding
growth capital
B2B
founder support
impact investing
subscription revenue