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Empowerment Capital is a New York City-based venture capital firm founded to support forward-looking, growing companies. Established with the intent to provide an alternative to traditional equity financing, the firm specializes in revenue participation financing. This model allows startups to access capital while retaining control and ownership. Empowerment Capital primarily serves companies that are already generating revenue and are on a path to profitability.
The firm focuses on startups located in North America, Europe, and Asia, specifically targeting those with at least $1 million in annualized revenue. Empowerment Capital's unique approach enables founders to secure growth capital without the constraints typically associated with equity investments, such as personal guarantees or fixed repayment deadlines.
As of now, Empowerment Capital has not publicly disclosed its fund size or the number of portfolio companies. However, it has made revenue-participation investments, including a notable transaction in January 2020 with an undisclosed technology company. The firm continues to seek opportunities to invest in companies that align with its mission of supporting sustainable growth.
Empowerment Capital invests in companies across various sectors, including AI, SaaS, fintech, healthcare, biotech, consumer, edtech, climate, energy, and logistics. The firm targets startups in the U.S., Canada, the U.K., and Israel, focusing on those that are generating at least $1 million in annualized revenue and have predictable future sales. This investment strategy is designed for companies that prefer growth capital without the constraints of traditional equity financing.
The check size range for Empowerment Capital typically falls between $1 million and $5 million, with the potential for larger investments as companies grow. Their revenue-based financing model allows for monthly payments based on a percentage of revenue, which can range from 1% to 5%. This structure provides flexibility for founders while ensuring that Empowerment Capital can participate in the growth of the companies they support.
Empowerment Capital's investment thesis emphasizes the need for flexible capital solutions that do not require giving up meaningful equity or control. The firm is particularly interested in companies that are already on a growth trajectory and can demonstrate forecastable revenue, making it a suitable option for startups looking to scale without traditional venture capital constraints.
Empowerment Capital has engaged in revenue-participation investments, although specific names of portfolio companies are not publicly disclosed. One notable investment includes an undisclosed technology startup that received approximately $1 million in January 2020. This investment exemplifies Empowerment Capital's focus on providing flexible capital solutions to companies that are generating revenue and seeking to grow without diluting equity.
While the firm has not publicly listed its entire portfolio, it is known to support a diverse range of sectors, including AI, fintech, healthcare, and more. The absence of publicly disclosed portfolio companies does not diminish the firm's commitment to backing startups that align with its investment criteria.
Empowerment Capital's revenue-based financing model allows startups to maintain control while accessing necessary growth capital, making it an attractive option for founders looking to avoid the pitfalls of traditional equity financing.
To pitch Empowerment Capital, founders should visit their Contact Us page or email inquiries@empowerment.com. It is recommended to include detailed information about the startup's revenue, growth trajectory, and future sales forecasts in the pitch deck. Founders should expect a response time that may vary, so it is advisable to follow up if no response is received within a reasonable timeframe.
Empowerment Capital does not publicly disclose specific preferences for warm introductions, but reaching out through the provided channels is the best approach for initial contact.
What are Empowerment Capital's investment criteria?
Empowerment Capital seeks startups that are generating at least $1 million in annualized revenue and have predictable future sales. They focus on companies in various sectors, including AI, fintech, healthcare, and more.
How can I pitch to Empowerment Capital?
Founders can pitch Empowerment Capital by visiting their Contact Us page or by emailing inquiries@empowerment.com. It is advisable to provide detailed information about the company's revenue, growth trajectory, and future sales forecasts.
What makes Empowerment Capital different from traditional VCs?
Empowerment Capital offers revenue participation financing, which allows startups to access capital without giving up equity or control. This model is designed for companies that prefer flexible capital solutions and are already generating revenue.
What is the typical check size for investments?
Empowerment Capital typically invests between $1 million and $5 million in startups, with the potential for larger investments as companies grow.
What is the geographic focus of Empowerment Capital?
The firm invests in startups located in North America, Europe, and Asia, specifically targeting companies in the U.S., Canada, the U.K., and Israel.
What kind of support does Empowerment Capital provide post-investment?
While specific details about post-investment support are not disclosed, Empowerment Capital's revenue-based financing model allows founders to maintain control and flexibility, which can facilitate a more collaborative relationship between the firm and the startups they support.
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