Novel Capital announces seed extension funding

By Edlyn Cardoza

Novel Capital, the FinTech Revenue Growth Platform that helps B2B businesses accelerate their growth, recently announced a seed extension round led by Ulu Ventures, with additional participation from MatterScale, Edovate Capital, Tenzing Capital, and KCRise.

Entrepreneurs are facing bigger challenges than ever before while not always being able to diagnose what is holding them back. The problems typically lie in three key areas: the need for growth capital, identifying the right metrics, and knowing what strategies equate to predictable revenue growth.

Novel’s Revenue Growth Platform will help B2B Founders act upon the levers that accelerate growth. Customers can leverage their predictable revenue for on-demand access to non-dilutive capital that grows with them. By connecting their systems, they gain data-driven insights about their key barriers to revenue growth. The platform then pairs companies with machine learning-powered recommendations and actionable strategies to overcome those barriers.

“Early-stage Founders have passion and an idea, but they’re still learning how to build their business. If they can identify their growth barriers and have the capital and strategies to overcome them, they will build businesses that can overcome any market challenge,” said Carlos Antequera, CEO of Novel Capital. “The additional funding will accelerate the development of our Revenue Growth Platform and empower more businesses to achieve their next level of success.”

“Novel is at the center of powerful economic trends in the U.S. with small businesses adapting and innovating faster, the exponential growth of SaaS fueled by digital transformation, and the cooling of venture activity paired with inflation impacting bank loans,” said Fernando Fabre, Managing Partner at MatterScale. “We rarely see an opportunity with multiple gears in the right place, at the right time, and with the right team.”

In many cases, capital is a key concern for Founders looking to grow. Novel’s revenue-based financing model is just one component of the larger Revenue Growth Platform, offering a simple, transparent, and less risky alternative to bank debt.

“We see a ton of potential in Novel Capital’s approach to startup financing,” said Clint Korver, Co-Founder and Managing Director of Ulu Ventures. “The first-hand entrepreneurial experience they bring, coupled with their data-driven approach to financing, will increase access to funding for the next wave of great B2B companies.”

Entrepreneurs enter their basic company information and connect core systems to Novel’s online platform. From there, key company data points are analysed to identify potential growth barriers and determine the amount of capital they can access. When the company is approved, it can access on-demand capital directly through the platform, with access to additional capital as they continue to grow and generate more revenue.