EMPOWERMENT CAPITAL believes that companies looking for venture capital deserve an alternative — cash to grow their business from investors who take little or no equity in return.

We provide this alternative. Each investment is unique, customized to the needs of the companies in which we invest, but in every case we seek to provide cash to a growing company in exchange for a participation in their growing sales.

Bar Chart IconA typical agreement will have the following structure:

  • Amount: Initial investment of $250K – $1 million, with the potential to grow significantly over time
  • Monthly Payment: Typically 1% – 3% of revenue
  • Buyout Options: The revenue participation can extinguish itself after a target amount has been paid, or you can terminate the agreement at any time by buying it out for a pre-determined price.
  • Control Features: None (though we may ask for an observer’s seat on the board)
  • Financial Covenants: Few or none
  • Personal guarantee: None
  • Warrant Coverage: Little or none

Bar Chart IconEmpowerment seeks to invest in companies with the following characteristics:

  • North America-based
  • Growing
  • Recent recurring revenues annualize to $750k/year or more. We can sometimes be expansive in our definition of recurring revenue.
  • Visibility to operating profitability
  • Ability to predict future revenues

We can back companies in any industry.

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Empowerment gives you flexibility and saves you time. The amount you pay us will typically depend on two factors — your growth rate, and when you choose to exit. We receive an agreed-upon percentage of your monthly sales, so you pay us more in a good month and less in a bad one. You can exit the agreement at any time; exiting earlier will result in our being paid less. We’re fine with that; if we get out sooner, we are taking less risk.

Most outside capital comes with a lot of strings attached — financial and operational covenants, board seats, regular special reports. We understand that your time is best spent growing your business, so working with Empowerment is a lot easier.

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Because we take so little equity, our capital may be welcomed not only by founders but also by existing investors.

We are happy to invest alongside or in lieu of angel investors or traditional venture capital firms.

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If this sounds like it may be a fit for you, send us a note.

We will quickly be in touch to learn your story and collect the information needed for our investment team.

Contact Us

We seek to respond promptly to every inquiry.
If we can help, we will figure it out quickly and we seek to close every transaction in under a month.