OCTOBER 23, 2019: MIDWEST-BASED FINANCING AND VENTURE CAPITAL FIRMS PARTNER TO PROVIDE STARTUPS WITH DIVERSE SOURCES OF CAPITAL
Collaborative VC duo provides financing to ABODO, a Madison, Wisconsin-based apartment-hunting startup
KANSAS CITY, Kan., Oct. 23, 2019 /PRNewswire-PRWeb/ — Novel Growth Partners, a new revenue-based financing (RBF) firm recently partnered with Flyover Capital a well-respected midwest venture capital (VC) firm to provide financing to ABODO, a Madison, Wisconsin-based startup focused on making apartment hunting easier.
ABODO is the most recent example of a startup utilizing the combination of revenue-based financing and venture capital. Novel Growth Partners and Flyover Capital, both Kansas City-based firms with Kauffman Fellows roots, partnered to provide funding that would enable ABODO’s next stage of growth.
“While many entrepreneurs believe that venture capital financing is the only solution to achieve their financing needs, there are additional financing options that can be complementary at the various stages of a company’s growth,” stated Alec Slocum, Co-Founder and CEO of ABODO. “By partnering with both Novel Growth Partners and Flyover Capital, we were able to secure the financing we can benefit most from at our current stage.”
While a relatively lesser known option compared to VC financing, RBF provides an option that enables companies to grow while preserving their equity by providing growth capital based on an instrument where the company pays that capital back as a small percentage of its monthly revenue up to a predetermined return cap over a set number of years. “Our approach provides early stage companies an option that provides them a meaningful amount of growth capital without a long and tedious fundraising process. Instead, we provided a more flexible investment that aligns both of our interests,” stated Carlos Antequera, co-founder of Novel Growth Partners. “While venture capital has long been the traditional method of early stage ventures getting the growth capital they need, the fact is that only a small percentage of companies will be successful in achieving the rapid growth and other requirements that the majority of these deals require. By partnering with venture capital firms during a round of financing as well as offering standalone revenue-based financing, we are able to provide capital that is a better fit for a large number of early-stage technology companies.”
Thad Langford, Managing Partner of Flyover Capital continued, “As an early investor in ABODO, we’ve witnessed the company’s rapid progress in re-imagining the way that renters search and find their ideal apartment. We’re excited to have Novel Growth Partners supporting the team’s journey and providing additional fuel to the mission. In addition, this showcases the power of the Kauffman Fellows network of global investors, as both Flyover and Novel were founded by Fellows.”
About Novel Growth Partners
Novel Growth Partners is a revenue-based financing venture fund that provides flexible capital solutions to early-stage software companies. Novel provides companies up to $1M in growth capital and leverages the operational expertise of its founders and partners to provide tactical sales and marketing support to entrepreneurs via its proprietary Growth Bootcamp. Novel invests in entrepreneurs focused on growing revenue and building a near term profitable company. Unlike other growth capital, Novel does not take equity or require personal guarantees. More information is available at https://www.novelgp.com
About Flyover Capital
Flyover Capital’s mission is to invest in the next generation of technology success stories outside of the traditional tech hubs. Based on the belief that seed and Series A stage companies between the coasts have been underserved and undercapitalized, the firm aims to find aspiring technology entrepreneurs with actionable vision and a market-validated product solving an acute problem in a large market. In addition to a strong work ethic, “flyover country” boasts lower costs of development, access to Fortune 500 companies, a strong collection of universities and technical institutions, and an educated workforce. Combined with the operational expertise of the Flyover Capital team, this provides an impactful platform for both investors and portfolio companies in this region.
ABODO is an online marketplace that empowers renters to find their best home. Used by twenty million millennial and Gen Z renters across the country, ABODO offers the first frictionless, completely digital home shopping experience for renters. Based in Madison, WI, ABODO is a 50-person company with $12MM raised-to-date.
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