KC, Wichita investors, new backers boost Novel Capital’s efforts to break down funding barriers

Additional funders have joined a seed extension round to help Novel Capital accelerate growth for B2B predictable revenue companies, the company announced Monday, noting further investment by KCRise Fund and Wichita-based Tenzing Capital.

Novel Capital’s latest funding round was led by Ulu Ventures, with additional participation from MatterScale and Edovate Capital, as well as its regional investors, Tenzing and KCRise. Financial details of the seed extension were undisclosed, although the company in March announced $115 million in initial equity and debt funding.

The startup offers an alternative approach to traditional funding — offering a simple, transparent, and less risky alternative to bank debt. Among the ways Novel works to accelerate companies’ growth:

• Bridge between funding rounds to unlock new milestones for higher valuations
• Immediately invest in sales and marketing resources for revenue growth
• Hire more staff to meet the needs of new clients
• Ease predictable cash shortages in seasonal or cyclical businesses

Darcy Howe and Ed Frindt, KCRise Fund

“[We] see the need for financing which isn’t venture and isn’t a bank loan,” said Darcy Howe, founder and managing director of KCRise Fund, voicing confidence in Novel’s model. “The majority of businesses built in the U.S. which are growing are somewhere in the middle.  It’s important that innovation in capital markets bring much needed fuel to power companies in new creative ways.”

Novel’s Revenue Growth Platform helps B2B founders not only leverage their predictable revenue for on-demand access to non-dilutive capital, but also to gain data-driven insights about their key barriers to revenue growth, the company explained in a press release. The platform then pairs companies with machine learning-powered recommendations and actionable strategies to overcome those barriers.

The Novel Capital team — led by co-founders Carlos Antequera, CEO, and Keith Harrington, managing director — and its Revenue Growth Platform are already making a significant impact, said Josh Oeding, founder and general partner at Tenzing Capital, noting his excitement at the prospect of further investment in the startup.

“Recurring revenue has become the 8th wonder of the world.  Entrepreneurs globally are building companies of significance with recurring revenue business models, yet traditional capital markets aren’t suited to meet their needs,” Oeding said. “As experienced founders, Carlos and Keith know first-hand the challenges of navigating the capital markets while building high-growth companies.”

“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.”

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