Revenue Royalties

Flow Capital’s revenue-linked growth capital provides competitive and flexible options for small and medium sized enterprises (“SMEs”) which are looking for an alternative or complement to traditional debt and equity financing.

Our goal is to align with your plans for quickly increasing the value of your business by trading our capital for a small percentage of your company’s future revenues, matching our returns to your success.

A typical royalty agreement will have the following structure:

  • Amount: Initial investment of $500K-$1 million; up to $3 million over time
  • Monthly Payment: Minimum payment or up to 4% of revenue
  • Buyout Options: You control
  • Control Features: None
  • Financial Covenants: None
  • Security: None
  • Warrant Coverage: Light

Flow Capital seeks to invest in companies with the following characteristics:

  • North America-based
  • Capital-efficient and growing
  • Operating in high growth market, such as technology, cannabis, renewables, healthcare IT
  • Operating history greater than 2 years
  • Annual revenues or ARR of greater than $1 million
  • Close to or at operating profitability
  • Revenue visibility