Novel Capital, Pipeline join forces to help members gain easier access to evasive non-dilutive capital

A fintech startup launched by two veteran founders is extending its services to members of the elite Pipeline network in a bid to make non-dilutive capital more accessible to startups across the region.

Novel Capital, an Overland Park-based fintech growth platform that helps B2B businesses accelerate their growth, recently announced plans to help companies led by the Heartland founders from within the Pipeline Entrepreneurs network — providing connections to the funding, support and resources needed to scale.

Midwest entrepreneurs are often overlooked by investors, with much of the attention and access to capital being concentrated on the coasts, said Carlos Antequera, CEO of Novel Capital, noting the partnership between his company and Pipeline aims to address that disparity for B2B businesses in the fellowship.

“Pipeline’s Fellowship program is critical to the success and growth of so many Midwest Founders, and by expanding capital access for their community, we can help these entrepreneurs maximize their growth potential,” said Antequera, co-founder of Novel Capital alongside Keith Harrington. Both men are themselves associated with Pipeline; Antequera as a graduate of the fellowship, Harrington a mentor for the network.

2023 Pipeline fellows: top, Audra Dinell, The Thread: Women’s Leadership Collective; Scott Campbell, KBS Service; Tashara Earl, Shades of Color; Robert Disbenger, GovBuilt; middle, Eliot Arnold, Mood Spark AI; Megan Orear, Celerity Enterprises; Lee Zuvanich, Appsta; Sarah Hill, Healium; Jon Broek, Tenfold Security; bottom, Jonathan Ruiz, EB Systems; Mandy Shoemaker, Dementia Engagement Solutions; Nic Bianchi, Bianchi Candle Co; Molly O’Neil, Superb

Pipeline Entrepreneurs helps a select group of Midwest entrepreneurs grow their companies by providing them with expert advice and resources from a panel of national advisors and mentors.

Click here to check out a roster of Pipeline members.

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“As a former fellow, I know firsthand the impact that the Pipeline program and network have,” Antequera continued. “We want to boost the effectiveness of that foundation by providing Founders access to another critical component — growth capital — at the time they need it most.”

News of the partnership comes amid the recent announcement of Pipeline’s $3 million grant from the Ewing Marion Kauffman Foundation, as well as the hiring of its first director for the Pipeline Pathfinder program.

RELATED: From exclusive to expansive: What Pipeline’s first hire in three years (and a $3M grant) mean for its efforts to close region’s resource gap

Novel Capital and Pipeline officially partnering will help fellows and members act upon the program’s advice and resources by allowing them to leverage their predictable revenue for access of up to 40 percent of their revenue in non-dilutive capital, without the personal guarantees or warrants so many founders at this stage face, said Novel Capital in a press release.

Novel offers two distinctive capital products for early-stage companies: UpFront Capital, offering controllable payment options and generous 24-month payoff terms, and RevShare, with payments that flex based on monthly cash receipts over 36 months. As founders grow their businesses, they can access additional capital to fuel their momentum.

Melissa Vincent, Pipeline Entrepreneurs

“There are so many promising startups in the Midwest, but they often lack the access to capital needed to become scalable,” said Melissa Vincent, executive director of Pipeline. “We’re excited to work with Novel Capital to provide entrepreneurs with an alternative form of funding custom-built for founders at this growth stage.”

This initiative is part of Novel Capital’s Partner Program, which launched in early 2023. The program is designed to help the customers and members of partner companies unlock the value of their predictable revenue, the company said.