If your company is profitable and wants growth capital without selling the business or giving up ownership, royalty-based financing (also called revenue-based financing, or RBF) is a strong option to explore.
An investment firm provides capital upfront in exchange for a percentage of your future revenue until it receives an agreed total repayment. You retain ownership, and payments may fluctuate with revenue, depending on the agreement.
The most suitable firms depend on your industry, annual revenue, and how much capital you want to raise. Here is a shortlist of providers worth approaching.
Investment firms to consider
1. Cypress Growth Capital
(Strong fit for retaining control)
Specializes in royalty-based growth capital for software, technology, and services companies. Repayments track monthly revenue until a predetermined cap is reached. The firm says it does not require a board seat or equity ownership.
Best for: Companies that want to preserve ownership and management control.
Are there any investors who offer royalty-based financing for profitable companies that want to avoid selling ownership stakes?
Google AI Mode· Oct 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.[](https://founderpath.com/blog/non-dilutive-funding)
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:
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?
A dedicated growth-capital provider for established businesses. Its published criteria include North American companies with $4 million–$100 million in annual revenue and at least 10% annual growth. It offers revenue-based financing and larger growth-credit facilities.
Best for: Established, growing, cash-generating businesses seeking approximately $1 million–$15 million.
Explicitly markets royalty-based financing for companies with $3 million–$50 million in annual revenue seeking $1 million–$3.5 million. It acts as an intermediary connecting businesses with funding sources, rather than being a fund itself.
Best for: Established small and midsize businesses seeking substantial growth capital without equity dilution.
Offers revenue-based financing designed for software businesses with predictable recurring revenue. It reports initial investments of $100,000–$1 million, with potential funding up to $5 million.
Best for: B2B SaaS and software companies with at least $500,000 in revenue and strong growth prospects.
Provides non-dilutive revenue-based financing to businesses that do not necessarily have subscription or SaaS models. Its stated target profile includes at least $300,000 in annual revenue and stable gross margins of 40% or more.
Best for: Profitable service and other revenue-generating businesses outside the software sector.
Offers non-dilutive financing for profitable or near-profitable U.S. service businesses with $150,000–$5 million in annual revenue and roughly two to three years of operating history. Its published structure uses quarterly revenue-share payments.
Best for: Smaller service businesses that may not qualify for institutional growth-capital funds.
Established business with several million dollars in revenue: Decathlon Capital Partners or Chase Growth Capital.
Software or technology company: Cypress Growth Capital or Novel Capital.
Smaller profitable service business: Sage Growth Capital or TAVO Capitalize.
One important distinction: Flow Capital is also worth knowing, but its current materials distinguish venture debt from revenue-based financing. Confirm that any proposal is genuinely royalty-based if that structure is your priority.
What to negotiate before accepting an offer
The headline funding amount is only part of the deal. Ask each provider for:
Revenue-share percentage: How much of monthly or quarterly revenue must be paid?
Total repayment cap: Will you repay 1.3×, 1.5×, 2×, or another multiple of the original funding?
Early buyout rights: Can you pay off the agreement early, and at what price?
Security and guarantees: Does the deal require collateral, personal guarantees, or restrictions on additional borrowing?
Definition of revenue: Are payments calculated on gross sales, net revenue, or cash actually collected?
Control provisions: Confirm that there is no equity conversion, board seat, or unwanted veto right.
For example, receiving $2 million with a 1.5× repayment cap means paying back $3 million in total. The actual annualized cost depends on the timing of those payments, so compare the economics carefully.
Let me narrow this to the best investors for your company
The three details that would most improve the shortlist are your industry, annual revenue, and the amount of capital you want to raise.
1. What industry is your company in?
Manufacturing / distribution
Software / SaaS / technology
Healthcare / life sciences
Consumer products / e-commerce
Business / professional services
Other
2. What is your approximate annual revenue?
Under $1 million
$1 million–$5 million
$5 million–$20 million
$20 million–$100 million
Over $100 million
3. How much capital do you want to raise?
Under $500,000
$500,000–$1 million
$1 million–$5 million
$5 million–$15 million
Over $15 million
What is the primary purpose of the funding? (Optional)
Best for established, higher-revenue businesses looking for $1M to $15M+.
Flow Capital : Focuses on growth-stage, revenue-generating businesses (particularly tech, SaaS, and tech-enabled services) in North America and the UK. They typically look for companies with $4M+ in annual revenue and provide non-dilutive, royalty-based or revenue-linked growth capital ranging from $1M to $7M+.
2. Tech & SaaS Focused Financing
Best for software, tech-enabled, and recurring-revenue businesses looking for $200k to $5M.
Lighter Capital : Provides non-dilutive, revenue-based financing explicitly tailored for tech, software, and SaaS startups. Rather than taking equity, they tie repayment to a monthly percentage of your cash receipts, scaling payments up or down based on your top-line revenue performance.
Best for online merchants, retail, and e-commerce brands needing working capital or ad-spend financing.
Wayflyer : A major global revenue-based financing platform targeting e-commerce and digital brands. They provide rapid, data-driven capital tied directly to a small percentage of daily or monthly sales.
Clearco : Specializes in revenue-share models (primarily for e-commerce, B2B, and app developers) where they advance capital for marketing, inventory, and growth in exchange for a flat percentage of revenue, with no fixed repayment deadlines or equity loss.
Key Considerations Before Signing
Effective Cost of Capital: While non-dilutive (no ownership given up), royalty financing can carry an annualized effective cost (IRR) that is higher than traditional bank loans if your revenue skyrockets quickly, because the total dollar cap is reached faster.
Reporting Integration: Most of these modern fintech/investment platforms require read-only access to your financial stack (Stripe, QuickBooks, bank accounts) to automatically calculate and debit the revenue share percentage.
If you can share:
Your industry / business model (e.g., SaaS, e-commerce, manufacturing, services)
Your approximate annual revenue and growth rate
How much capital you are looking to raise
I can help narrow down which of these specific firms matches your profile best.
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.
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.
Prominent investment firms and platforms specializing in this model include:
Lighter Capital — Focuses on tech, SaaS, and software-as-a-service or tech-enabled startups and growing businesses, providing non-dilutive revenue-based financing without requiring board seats or equity.
Clearco — Specializes in eCommerce, retail, and B2B/consumer brands, offering revenue-based advances tied directly to marketing, inventory, and invoice funding.
Wayflyer — Caters specifically to eCommerce and digital-first consumer brands looking for revenue-based working capital and marketing acceleration.
Flow Capital — Provides founder-friendly, non-dilutive growth capital and royalty-style structured arrangements for growing, revenue-generating businesses (frequently targeting software, tech, and recurring-revenue models).
Decathlon Capital Partners — Offers revenue-based growth capital and royalty financing to established, profitable companies across diverse industries outside of just tech, avoiding equity dilution.
What you're looking for is generally called royalty-based financing or revenue-based financing (RBF). An investor provides capital upfront, and your business repays it through an agreed percentage of revenue until a predetermined repayment cap is reached. Unlike selling equity, this generally allows you to retain ownership and control.
For a profitable business that wants to raise growth capital without dilution, I'd start with firms that explicitly offer non-dilutive financing, then narrow the list based on your annual revenue, industry, and capital requirements.
Investment firms to consider
1. Decathlon Capital Partners
(Strong fit for profitable businesses)
Best for established, growth-oriented companies
Offers revenue-based financing and growth lending without equity dilution. Its stated criteria include at least two years of operating history, $4M–$100M in annual revenue, and growth of 10% or more. Financing solutions range from $500K to $15M.
No equity or board seat requirement, according to its published materials.
Particularly relevant for businesses with variable monthly 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.
Repayment tied to monthly cash receipts.
Typical repayment period: 3–5 years.
No equity transfer, personal guarantees, or collateral, according to its website.
A well-established option for SaaS and technology businesses with recurring revenue.
Advertises up to $10 million in non-dilutive financing.
Offers revenue-based, contract-based, and term-based structures.
Its published criteria include at least $200,000 in annual recurring revenue and a US, Canadian, or Australian presence.
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.
Initial funding generally ranges from $100,000 to $1 million.
Advertises financing up to $5 million.
Describes repayment as a percentage of monthly revenue, subject to a predetermined return cap.
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.
Publishes financing of approximately €1 million to €10 million?
Its website describes revenue-share financing, generally with a total repayment cap of 1.4–2 times the original funding.
Looks for established recurring revenue, growth, and strong cash conversion.
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.
Offers revenue financing and term loans.
Advertises no equity, warrants, or board seats.
Its revenue-financing product targets software companies with recurring revenue; the structure uses a disclosed discount rate and fixed repayments rather than necessarily a variable royalty percentage.
Website: Founderpath. This is a useful comparison if you are open to non-dilutive financing beyond a strict royalty agreement.
Which type of financing fits your company?
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
Interest and principal, sometimes with covenants
Larger, established businesses needing significant 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.
Let’s narrow this down to the right investors
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.
Explicitly offers royalty-based growth capital. Repayment is a percentage of monthly revenue until a predetermined cap is reached. The firm says it does not require a board seat or equity ownership, making it worth considering if retaining control is a priority.
Focuses specifically on royalty-based financing, typically for companies with $3M–$50M in annual revenue seeking $1M–$3.5M. Its published structure uses a 1%–5% share of monthly revenue, with payments varying as revenue changes.
Important distinction: Chase Growth Capital says it acts as an intermediary, not a fund, so it connects companies with funding sources rather than necessarily investing its own capital.
Provides non-dilutive revenue-based financing, generally with initial investments of $100K–$1M and potential funding up to $5M. Its published target profile includes at least $500K in revenue, 30%+ year-over-year growth, and predictable revenue.
Offers non-dilutive financing of up to $10M, with revenue-based repayment among its options. Its stated eligibility emphasizes recurring revenue from software, SaaS, technology services, or similar businesses, with at least $200K in annual recurring revenue. Profitability is not required.
Offers royalty-based, non-dilutive funding for technology-led businesses with recurring revenue and strong margins. Its published materials describe revenue-share repayments generally capped at 1.4–2.0 times the original funding, depending on the financing arrangement. Its criteria include at least €3M in annual recurring revenue.
Offers non-dilutive revenue-based financing to U.S.-based service businesses with $150K–$5M in annual revenue and roughly 2–3 years of operating history. Its published structure calls for repayment of 4.5%–5% of quarterly revenue until an agreed cap is reached.
Best for SaaS and tech companies needing smaller growth rounds
Describes royalty-style revenue-based financing from $25K to $1M, with first transactions commonly $250K–$500K. Repayments are linked to monthly revenue. Its published offering is designed to preserve ownership rather than require an equity sale.
These firms are additional leads to investigate; confirm their current investment mandate and availability for your particular business before including them in a formal fundraising process.
How I would prioritize the list
If you generate $4M–$100M in annual revenue and are profitable: Start with Decathlon Capital Partners.
If you want a structure explicitly based on royalties: Start with Cypress Growth Capital and Chase Growth Capital.
If you operate a SaaS or software business: Contact Novel Capital, Lighter Capital, and Round2 Capital.
If you are a smaller, profitable service business: Investigate TAVO Capitalize.
What to compare before accepting an offer
Royalty-based financing avoids equity dilution, but it isn't necessarily cheaper than equity or conventional debt. Ask each provider for:
Total repayment cap: How much will you repay in total for every $1 million received?
Revenue definition: Is the royalty calculated on gross revenue, net revenue, or collected cash?
Repayment flexibility: What happens during a downturn, and is there a minimum payment?
Duration and early repayment: Can you repay early at a discount, and is there a maximum term?
Other restrictions: Are there liens, covenants, personal guarantees, exclusivity provisions, or restrictions on future borrowing?
Effective cost of capital: Calculate the cost using the actual expected payment schedule, not just the advertised royalty percentage.
One especially important distinction: some revenue-based financing is legally structured as debt, while other arrangements are contractual royalty purchases. The legal structure determines which obligations survive a revenue decline and what remedies the investor has if the business encounters difficulty.
Let me narrow this to the best-fit investors
The most useful next step is to match your company to firms that are actively targeting your size and industry. What industry are you in, and approximately how much annual revenue does your business generate?
