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Keith Harrington

COO at Novel Capital - Growth Capital for Software Companies

Keith Harrington is the Co-Founder and COO of Novel Capital, a fintech funding platform that provides non-dilutive capital to B2B software companies.1 He founded the company in October 2017 and is based in Kansas City.1

Harrington has a diverse background in investing, operations, and entrepreneurship:

  1. Education:

    • MBA from Indiana University's Kelley School of Business
    • B.S. in Finance from Park University
    • Completed the Venture Capital Executive Program at UC Berkeley's Haas School of Business1
  2. Professional Experience:

    • Founder of RBF Network, supporting revenue-based investors (January 2020 - Present)1
    • Previously worked as a Managing Director at KBA, leading digital health and technology investments2
    • Led technology infrastructure operations for Quintiles Transnational2
    • Worked at Birch Telecom, helping build technical infrastructure for rapid growth2
  3. Entrepreneurial Ventures:

    • Co-founded Novel Capital, which has raised funding from investors like Ignia Partners, MatterScale, Gaingels, and Ulu Ventures3
    • Founded Upstart Partners to help Midwest entrepreneurs access capital2
    • Co-founded Fulcrum Global Capital, a $100 million venture capital fund focused on agtech, animal health, and digital health industries2
  4. Recognition:

    • Named in Ingram's Magazine 40 Under 40 in Kansas City Class of 20141

Harrington's work at Novel Capital focuses on providing fast, non-dilutive funding to B2B software companies with recurring revenue between $500K to $5M, seeking growth capital of $100K to $5M.1 The company aims to be a comprehensive resource for entrepreneurs, helping them make informed decisions about various funding options.3

Highlights

Dec 14 · linkedin

As someone currently in the fundraising market, I can attest that this is an incredibly difficult macro environment to raise capital. One thing I’ve noticed is that most Founders tend to default to the old tried-and-true (and very hard to raise) equity route. But equity rounds aren’t the only option.

Taking on debt can be a viable solution when you need growth capital. I frequently advise entrepreneurs to keep these important considerations in mind:

Is This Funding Suitable for Me? In other words, does the capital you’re raising support your goals, and is it aligned with your business fundamentals? Match repayment terms with the purpose of the debt and balance short-term and long-term capital requirements. Failing to synchronize these factors can lead to problems, such as having to repay loans before revenue from new initiatives is generated.

Is It the Appropriate Amount of Capital? Balance your immediate capital needs with realistic attainability; don't chase big funding for validation (that’s kind of a vanity metric, you know). Raise the capital you need to accomplish your plan. Smaller, strategic loans can minimize risk, optimize focus, and set the stage for future success. Consider what's immediately needed and avoid paying for unutilized funds.

Will It Support My Growth? Building a SaaS business is a long-term endeavor. When seeking financing, look for a capital partner that supports your growth with access to additional funds at certain milestones. Explore alternative financing options that optimize cost, evaluate results, and fund ongoing growth without dilution. The ideal partner will offer guidance on cash flow and structures that benefit both parties, not just capital.

What Are the Payment Requirements? Choose partners that allow you accept what you need, when you need it. For instance, if you accept $500,000 of a $1 million offer, the right lender keeps the remaining $500,000 available for future needs, gradually increasing your access to capital. This ensures a reserve of funds remains at your disposal without paying for unused amounts.

Accepting funding is more than just a financial decision, it involves a human element and strategic analysis as well. While a one-and-done or totally automated process may be tempting, it can prove costlier in the long run.

Before you lock down a funding partner, make sure there’s due diligence, including scrutinizing term sheets for factors like dilutive provisions, financial covenants, payback structure, and how they work with companies over the long run.

And of course, flexibility is key. A funding partner's ability to adapt – through continuous underwriting, for example – may indicate a willingness to support future growth opportunities beyond the current loan.

Oct 5 · linkedin

🚨 Attention venture-ready founders 🚨    Are you interested in connecting face to face with 60+ investors in Kansas City? Then come join me Nov. 7 at Mid X Midwest, sponsored by Novel Capital.    This one-of-a-kind event is focused on creating the most productive interactions between early-stage tech founders and capital providers, further establishing KC’s role as a hub for venture connectivity.    It features an engaging half-day of 1:1 interaction and venture-focused content, followed by a social evening of some of the region’s most unique entertainment.     If you’re a founder with venture backing (Pre-Seed through Series B) or preparing for a venture raise, click the link below to apply to attend.     Registration closes Oct. 10, so act quickly. You won’t want to miss this one!    #MidXMidwest #MXMW #entrepreneurship #ventruecapital #alternativefinancing #revenuebasedfinancing #MidwestTech #SaaS #B2B

Related Questions

What inspired Keith Harrington to transition from medicine to venture capital?
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Keith Harrington
Keith Harrington, photo 1
Keith Harrington, photo 2
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Location

Olathe, Kansas, United States