We are proud to introduce you to Empowerment Capital, a VC that is committed to helping startups succeed. Their innovative business model offers more flexibility and is far less dilutive than your typical Venture Capital.
Empowerment Capital invests in companies that have recurring revenue, and our investments have been used in the past to trigger matching grants. In a typical case, Empowerment invests up to $1,500,000 and the company then pays a small fraction of revenue monthly (often around 3%) until Empowerment has received a specified amount, at which point the payments cease. We are delighted to back companies that receive non-dilutive grants as well as regular customer revenue, and our investment can serve to trigger matching grants.
We don’t want a board seat, we won’t ask for a personal guarantee, and we don’t impose a penalty if you pay us off early. This is not a loan — if you have a slow month, you pay us less, and there is no maturity date by which you have to pay us back. We typically ask for a small number of warrants, but the relationship is largely nondilutive. The managing partners at Empowerment have experience in many industries and we seek to help our portfolio companies with introductions or other support if we can. If future revenue can be predicted with confidence because of long-term contracts, or network effects, or any other reason, we’ll work hard to find terms that work for everybody.
We help high-growth startups find and apply for non-dilutive funding. Schedule a consult call with us HERE.