We can answer your questions
Tech Rise Capital offers financial capital ranging from €50k to €500k based on the Revenue Based Funding model. Through a revenue sharing agreement we agree on a certain percentage of sales which will be collected monthly. Depending on the MRR multiple of the investment and our in-house analysis we will agree upon a multiple which has to be repaid.
There is no time limit on repayment, nor do we take personal guarantees, equity, or hidden fees. This allows us to be completely aligned with the business as higher MRR growth results in faster repayment.
Revenue Based funding can be used alongside or instead of venture capital. This type of funding is better suited towards companies without 10x multiple prospects which Venture Capital usually targets. An added advantage is the fact that founders don’t have to give up equity or take on unnecessary debt.
Depending on the ratio between the investment and the MRR of the company, we expect a repayment equal to 2-3x the initial investment. The repayments are charged as a flat percentage of your monthly revenue, this means repayments can grow, shrink or stop depending on business performance.
We do not charge any additional fees so you’ll know the exact amount we expect as repayment when you receive an offer from us.
Questions about the application process
There is a set of requirements a company needs to satisfy before being considered eligible for Revenue Based Funding.
- The company generates a 6 month rolling average MRR of at least €5K.
- The company operates in the Software, Saas, Subscription, Mobile App and or E-commerce sector.
- The company is data-driven and offers digital access to KPIs and Financial Data.
- The company is in the Pre-seed or seed stage.
- The founder of the company is preferably a second-time founder.
- The company solves a problem and monetizes it.
- The company operates mainly in the Netherlands. (international clients are fine)
- The company is fundable going forward with a high likeliness of future financing.
If you have any questions about whether or not your business qualifies, please fill in the contact form. We will get back to you within 3 working days and specify whether you are eligible for funding or not.
We aim to close the deal within 10 days, you will likely receive an update on the status of your application within 2 working days.
Questions about data
To be eligible for funding from Tech Rise Capital, we require integration with your bookkeeping and CRM platforms (e.g. Exact, Mollie etc.) to verify business performance. We will also require some information to verify key members of your company.
We will use your data for internal analysis and monthly invoicing. We will handle your data with utmost care and confidentiality. We will never sell your data to third parties.
Questions about repayment
During our negotiations, we will agree on a fixed percentage between 5%-15% of your monthly revenues to be shared, the precise amount depends on your business needs and budget. Through integration with your bookkeeping platform we will automatically send you monthly invoices until the negotiated amount is repaid.
Repayments will start on the agreed date listed on the term sheet. This is typically the first month after receiving funding.