Novel’s unique investment approach is changing the way
companies are evaluated, increasing support for
underestimated CEOs and the diversity and number of
CEOs who receive capital.
ONE THING IS CLEAR:
there’s a serious disparity in who’s receiving venture money and who isn’t.
In 2020, female-founded startups globally received $4.9 billion in venture funding, a 27% decrease since 2019.
The proportion of venture dollars to female-founded companies declined as well, from 2.8% to 2.3%.
Black and Latinx founders received only 2.6% of venture capital funding in 2020.
Yet studies show that companies led by women and people of
color are more likely to have higher financial returns.
An innovative approach to providing capital is good but not good enough. That’s why
Novel is committed to investing at least 50% of its capital in
entrepreneurs who identify as women and people of color.
“Most of us in the venture ecosystem know that the number of investors
and founders of color are not representative, and we know that there are
inherent challenges to the way capital is accessed. At Novel, we are committed
to making a direct impact in the number of diverse entrepreneurs we
can help by providing capital to grow their companies. Through our commitment
and actions, we can create new opportunities and change the statistics.”
– Carlos Antequera, Cofounder
Traditional venture capital bases investment on things like introductions, pitches, coffee chats,
and other subjective measurements. However, it’s becoming increasingly clear that this
approach is rife with bias.
A study on founder pitches looked at identical slides and scripts with
two voiceovers, one voiced by a man and one voiced by a woman, and
asked people to rate the investment. Presentations voiced by men
performed significantly better than those voiced by women, regardless
of whether the judge was male or female.
Novel’s investment mechanism, revenue-based financing, is a metrics-first approach
to investment.Put simply, we’re not traditional venture capitalists, and we don’t evaluate
you like traditional venture capitalists. Instead of scheduling endless calls and coffee chats
with limited visibility on the process or outcome, where the only characteristic you’re being
evaluated on is yourself, we make our investment decisions based off your accomplishments
and historical performance – your revenue, number of customers, customer retention
and acquisition, and burn.
You’re evaluated solely on the results you have delivered
and your company’s achievements, just like it should be.
Novel Growth Partners is committed
to changing the funding landscape,
one investment at a time
Meet some of our CEOs
OnShore Technology Group