Revenue-Based Financing

Increase your company’s growth where payments are based on your ability to pay

How It Works

Principal Amount

Average check sizes range from $1-5M

Monthly Payments

Monthly payments based on a percentage of top-line revenue

No Fixed Terms

The investee decides when they are ready
to buy out the investment

Typical Royalty Agreement Structure

Amount:

$1M+ first tranche; up to $5M in total

Monthly Payment:

Minimum payment or a percentage of revenue

Buyout Options:

You control; no fixed term

Control Features:

None

Financial Covenants:

Light

Warrant Coverage:

Light

Security:

Secured or unsecured

Is Revenue-Based Financing Right for My Business?

Seeking:

$1 million – $5 million

Annual Revenue:

Greater than $4 million; or $2.5 million for companies with recurring revenue business models (ARR)

Regions:

United States
Canada
United Kingdom

Sectors:

Primarily technology;
Open to high-growth companies in other non-tech sectors

Management:

Proven entrepreneurs with substantial ownership positions in their own businesses

FAQs

Will my company qualify for funding from Flow Capital?

We encourage all types of companies to apply! Flow invests in companies with strong management teams that have at least $4 million in revenue, strong proven growth, and capital-efficient business models.

Are there companies or sectors that Flow Capital won’t fund?

Our revenue-based financing model is best suited for high-growth, high-margin markets such as tech, SaaS, regulated cannabis, and renewables. Companies that operate in the industrial, brick-and-mortar retail, traditional mining extraction, oil and gas extraction, film, and pharmaceutical drug development sectors will find that there are existing sources of capital that are better suited for their needs.

Where does Flow Capital invest?

We are currently focused on investing in companies based in the United States, Canada, and the United Kingdom.

How much interest can I expect to pay?

None. Repayment is in the form of royalties on top-line revenue only.

What is the cost of the Flow Capital royalty?

Our royalty offering is a hybrid structure with features of mezzanine debt and equity. Like mezzanine debt, it has recurring monthly payments. Like equity, our investment is subordinated to all other existing debts at the time of investment and generates higher returns when the owners generate outsized returns through growth or a sale of the business. With these hybrid features in mind, our structure is priced in between mezzanine debt and equity.

Will you sign an NDA with our company?

Yes, upon request.