Data as of Oct 13, 2026A topic in Alternative Business Financing Providers.
Reviewed by Dimitry Apollonsky
Mentioned in · Jul 8 – Oct 13, 2026
Google AI ModeOct 13, 2026
Royalty-based financing (often used interchangeably with revenue-based financing or RBF) is an ideal fit for profitable companies that want to scale without giving up equity, board seats, or control. In this structure, investors provide capital in exchange for a fixed percentage of ongoing gross revenues until a capped multiple (typically $1.1.1, 1.1.2) of the original investment is paid back.
Depending on your company’s size, industry, and the amount of capital you need, several prominent investment firms specialize in this model:
ChatGPT SearchOct 13, 2026
If your company is profitable and you want growth capital without selling the business or giving up equity, royalty-based financing — also called revenue-based financing (RBF) — is a funding structure worth exploring.
Instead of selling shares or agreeing to a company sale, you receive capital from an investor and repay it through an agreed percentage of revenue until a predetermined repayment amount is reached. Many providers don't require board seats or ownership dilution, although terms vary by firm and deal.
The right firm depends on your industry, revenue size, growth rate, and how much capital you need. These are several providers to investigate.
1. Flow Capital
(Flexible royalty structures)
Provides growth capital to profitable or near-profitable companies, using revenue-linked royalty financing and other funding structures. Its current funding page indicates a target of , with annual revenue of at least $3 million.
Google AI ModeOct 13, 2026
Yes, absolutely. This structure is widely known as Royalty-Based Financing (RBF) or Revenue-Based Financing . It is a form of non-dilutive funding where investors provide upfront capital in exchange for a fixed percentage of ongoing top-line monthly or quarterly revenue until a predetermined total cap (usually a multiple of the initial investment, like 1.3 x 1.3 x 1.3𝑥 to 2.0 x 2.0 x 2.0𝑥) is paid back.
Because your company is already profitable and generating steady cash flow, you are in an ideal position for this type of financing, as these investors look closely at current revenue rather than speculative future exits.
If you'd like to narrow down the best fit, tell me:
I can help point you toward the specific investor profile that matches your scale.
ChatGPT SearchOct 13, 2026
We are a profitable business looking for capital, but we want to avoid selling equity. Can you list investment firms that specialize in royalty-based financing?
Best for: Established, growing businesses that want to preserve ownership and operating control.
Website:
2. Decathlon Capital Partners
Offers revenue-based growth financing and growth credit for North American businesses. Its stated criteria cover companies with $4 million–$100 million in annual revenue, at least two years of operating history, and generally 10% or greater annual growth. Investment sizes range from $1 million to $15 million across its two platforms.
Best for: Established, profitable companies seeking meaningful expansion capital without a conventional equity sale.
Website:
3. Novel Capital
Provides non-dilutive financing primarily for software companies with recurring revenue. It states that initial investments typically range from $100,000 to $1 million, with funding capacity up to $5 million. Its published criteria include at least $500,000 in revenue, predictable revenue, and a target of 30% or greater year-over-year growth.
Best for: SaaS and subscription businesses with predictable monthly revenue.
Website:
4. Lighter Capital
Provides technology businesses with growth capital repaid as a percentage of monthly revenue. Its model is designed to avoid equity dilution and personal guarantees, subject to the actual financing agreement.
Best for: Technology companies with recurring or relatively predictable revenue.
Website:
5. Pershing Ventures
Offers royalty-style revenue-based financing for private, revenue-generating businesses. Its published materials describe financing of approximately $25,000 to $1 million, with terms designed to preserve ownership rather than require an equity investment.
Best for: Smaller companies looking for working capital or growth funding, subject to eligibility.
Website:
| Structure | How you repay | Ownership impact |
|---|---|---|
| Royalty / revenue-based financing | Percentage of revenue, often until a repayment cap is reached | Usually no equity dilution |
| Royalty investment with buyout option | Revenue-linked payments, with a negotiated buyout mechanism | Usually retains ownership |
| Venture debt / growth credit | Interest and principal under agreed terms | Usually no equity dilution, though warrants may apply |
| Private equity | Typically no scheduled loan repayment; investor receives equity | Dilution and potentially shared control |
One important distinction: some royalty investors have a fixed repayment cap, while others offer structures without a fixed maturity date and allow the company to buy out the royalty later. Flow Capital describes both the revenue-linked structure and its buyout mechanics.
Before signing, compare the total repayment amount, the revenue percentage, any minimum payments, security interests, personal guarantees, default provisions, and whether the agreement restricts a future sale or refinancing.
The three most useful details are your industry, annual revenue, and the amount of capital you want. You can enter them here:
Company profile
Industry
Manufacturing / distribution
SaaS / technology
Consumer products / e-commerce
Healthcare / life sciences
Professional or business services
Other
Annual revenue
Under $1 million
$1 million–$5 million
$5 million–$10 million
$10 million–$25 million
$25 million+
Capital sought
Under $500,000
$500,000–$1 million
$1 million–$3 million
$3 million–$10 million
$10 million+
Primary use of funds
Expansion or growth
Acquisitions
Working capital
Liquidity for existing shareholders
Equipment or facilities
Most important financing requirement
No equity dilution and no board seat
Revenue-linked payments with a buyout option
Lowest total cost, even if repayment is fixed
Flexible repayment tied to business performance
[Find suitable financing firms]
With those details, I can narrow the list to firms whose investment criteria and deal sizes are aligned with your business, rather than general small-business lenders or private-equity firms looking to acquire it.
Yes. There are several investors and financing firms that provide royalty-based or revenue-based financing (RBF) to profitable businesses that want growth capital without selling equity or giving up ownership.
The key distinction is that you are not selling shares. Instead, the company receives capital upfront and agrees to pay the financier a negotiated percentage of revenue, royalties on sales, or a fixed repayment amount over time. Once the agreed repayment obligation is satisfied, the arrangement typically ends.
For an established, profitable company, this can be an attractive alternative to private equity, particularly when you want to fund expansion, acquisitions, inventory, marketing, or a shareholder buyout while retaining control.
1. Pershing Ventures
(Royalty-style financing)
A potential match for privately held, revenue-generating companies seeking capital without dilution. Its royalty purchase structure bases monthly payments on an agreed percentage of actual revenue.
Website: Pershing Ventures. Review its service charges and administrative fees carefully.
2. Sage Growth Capital
A strong candidate for established businesses outside the software sector. Its stated eligibility starts at approximately $300,000 in annual revenue, and it says the business model need not be subscription-based.
Website: Sage Growth Capital.
3. Lighter Capital
A well-established option for SaaS and technology businesses with recurring revenue.
Website: Lighter Capital. Profitability is not mandatory, so it can also suit growing businesses that have strong revenue but are reinvesting earnings.
4. Novel Capital
Focuses on software companies with predictable recurring revenue and a path to profitability.
Website: Novel Capital. Its published criteria include at least $500,000 in revenue and 30% year-over-year growth, so it is more growth-oriented than a fit for every mature, slower-growing company.
5. Round2 Capital
Worth considering for established, tech-driven companies, especially those with substantial recurring revenue.
Website: Round2 Capital. Its published criteria refer to at least €3 million in annual recurring revenue. Confirm current ticket sizes directly before applying.
6. Founderpath
Particularly relevant for subscription software companies that want to retain ownership.
Website: Founderpath. This is a useful comparison if you are open to non-dilutive financing beyond a strict royalty agreement.
| Financing structure | How you repay | Best suited for |
|---|---|---|
| Royalty / revenue share | A percentage of revenue until a negotiated cap is met | Businesses wanting payments to flex with sales |
| Revenue-based financing with fixed payments | Predetermined installments based on recurring revenue | Predictable-revenue companies seeking certainty |
| Traditional business loan | Principal and interest on a set schedule | Profitable businesses seeking potentially lower-cost capital |
| Growth debt / structured capital |
One important point: non-dilutive does not mean inexpensive. A revenue-share deal can cost more than a conventional loan, particularly if revenue grows quickly and you reach the repayment cap early. Compare the total dollar repayment, fees, repayment period, prepayment provisions, and any liens or personal guarantees before signing.
I can build a more targeted shortlist if you share a few details about the business.
1. What industry is the company in?
SaaS / software
E-commerce / consumer products
Manufacturing / distribution
Healthcare / services
Other established business
2. Approximate annual revenue?
Under $1 million
$1–5 million
$5–20 million
$20–100 million
$100 million+
3. How much capital do you want?
Under $500,000
$500,000–$1 million
$1–5 million
$5–20 million
$20 million+
4. Where is the company based?
United States
Canada
United Kingdom
Other Europe
Other / international
5. What will the capital fund?
Growth or expansion
Acquisition
Shareholder buyout
Working capital
Recapitalization or other
6. Profitability
Currently profitable
Positive EBITDA, but low net income
Cash-flow positive, reinvesting for growth
[Find matching investors]
With those details, I can prioritize firms that are genuinely suitable for a profitable operating business, rather than giving you a generic list of startup lenders.
| Interest and principal, sometimes with covenants |
| Larger, established businesses needing significant capital |
