Venture Debt Financing

Flow Capital’s venture debt financing structure provides entrepreneurs with a lower-cost but more restrictive alternative to a revenue royalty.

Company Characteristics:

  • Capital-efficient and growing
  • Operating in high growth market, such as technology, SAAS regulated cannabis, renewables, healthtech, CPG
  • Operating history greater than 2 years
  • Annual revenues or ARR of greater than $1 million
  • Close to or at operating profitability
  • Revenue visibility

FAQs

How long will it take to put a royalty financing in place?

We waste no time getting you the funding you desire. Within a week of our initial conversation we deliver a term sheet for your approval. Once executed, closing can follow within as little as four weeks.

What types of companies will Flow Capital invest in?

Our revenue-linked growth capital is designed for emerging growth companies, generally, including in high growth markets such as technology, SAAS, tech-enabled services, systems, blockchain, AI, big data, cannabis and healthcare IT.

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

Flow does not invest in companies that operate in the industrial, bricks and mortar retail, traditional mining extraction, oil and gas extraction, film and pharmaceutical drug development sectors.

What if my revenues are highly seasonal?

Flow Capital’s royalty model is adaptable and able to accommodate a high degree of seasonality. We tailor our terms to work with the business that you are operating. An example would be our ability to establish a rolling average monthly payment, ensuring our royalty structure works seamlessly with your cash flow generation.

Are there any hidden or ongoing fees?

There are no hidden or ongoing fees, there is only your royalty payment.

 

There are legal and initial closing fees at the front-end, which are clearly outlined and agreed upon in advance of any transaction. Flow Capital takes pride in knowing the fees which are levied are substantially lower than the fees associated with traditional alternatives.

What legal fees are involved?

It is not until we agree to move forward that legal fees are incurred. These associated fees are outlined in the executed term sheet and are set at a capped amount.

All legal fees are paid upon closing from proceeds of the funding.

We have endeavored to mitigate high legal costs by instituting a standardized legal and closing procedure. It is our aim to make every client’s experience as cost-effective as possible.