Athena Growth Fund 2023
Since 2016, RevUp has produced excellent returns for investors while supporting founders overlooked and underserved by Venture Capital.
RevUp's Athena Growth Fund 2023, the newest (and 7th!) fund in RevUp Capital's journey as a leader in revenue-based investing, is now open. The Fund will accept commitments from accredited investors through February 28, 2023.
Since 2016, RevUp has used a non-equity model to invest into an exciting class of companies that are hard to access through traditional Venture Capital.
This model has generated excellent returns for investors, producing a blended IRR of 20%+ across six funds.
Rather than hunt unicorns, RevUp invests into companies with market traction and the potential to grow to $10-$20M in revenue over 3-5 years. Unlike Venture Capital's dependency on home-run exits to generate returns, we create investor returns through revenue growth, enabling us to produce success results with or without exits.
Free from the "exit or bust" constraints of equity, RevUp can profitably invest into a broad range of high-quality companies and rapidly adapt to changing market conditions. These factors underscore our ability to perform well for investors, even during turbulent times.
Most importantly, we have effectively used this model to build a diverse and inclusive portfolio. We seek and actively invest into founders who are building their businesses outside networks of socio-economic privilege. Women. People of Color. First Generation Americans. Founders outside of major metro areas. Since 2018, 65%+ of our investments have been into companies founded by a woman or person of color. These are our people and we are so proud of what our founders have accomplished through the years.
RevUp’s Athena Growth Fund 2023—our 7th fund—builds on this success. Fund 2023 will accept $6M in investment and has a projected IRR of 20%+ and cash-on-cash return (DPI) of 1.7x to 2.2x.
The Fund will accept commitments through February 2023, with a $50,000 minimum commitment.
Why Athena? The goddess Athena was renowned for her good counsel, prudent restraint, and practical insights. While these values are often absent in traditional investing rhetoric, they are core to RevUp’s model and a driving factor in our success. Athena was also the champion of crafters and makers, those who pursued excellence through dedication and hard work. We seek and actively invest into founders who are building their businesses outside networks of socio-economic privilege. Women. People of Color. First Generation Americans. Founders outside of major metro areas. These are our people and we know that Athena would be proud as we are to lead them into battle! How do we select companies for investment? Find out here.
Why read when you can watch. Check out RevUp Partner Melissa Withers in the video below for a summary of the RevUp model, our thesis, and mission:
Just the Facts on Fund 2023
--RevUp is a global leader in revenue-based, equity-alternative investing. Since 2016, RevUp has invested into fast-growing, revenue-generating companies to produce excellent returns for investors WHILE supporting founders underserved by venture capital. RevUp funds have a historical blended IRR of 20%+
--RevUp offers investors a quick turn on capital and rapid liquidity. RevUp funds show actual cash returns earlier than alternatives, with cash beginning to return to investors beginning in year 2.
--Rather than hunt unicorns, RevUp invests into companies that have the potential to grow from early traction to $10-$20M in annual revenue. We invest into B2B and (some) B2c companies in several categories, including SaaS, tech-enabled services, and e-commerce.
--Unlike venture capital’s dependency on home-run exits to generate returns, RevUp’ Funds generate returns from a variety of outcomes. This enables RevUp to invest into a broad range of companies, secure high-quality deal flow, and perform well even during turbulent times.
--Since 2018, 70% of RevUp Capital’s investments were led by a woman or a person of color. These companies consistently produce excellent returns for our investors and no doubt they will continue to do so.
--The Athena Growth Fund 2023 is a $6M Fund that will be deployed into ~12 companies over a one-year period, with investor dividends paid over 7 years. The Athena Growth Fund has a projected IRR of 20%+ and a projected cash-on-cash return of 1.7x to 2.2x.
--The RevUp management team has invested in 130+ companies and produced outcomes for investors across industries and models. RevUp is one of very few revenue-based funds that have a proven track record with actualized returns.
The RevUp Model
Rather than take equity ownership in a company, we use a revenue-based model to generate investor returns. How does it work? Post investment, companies return a small percentage of revenue over time, until reaching a predetermined cap.
Companies begin returning dollars to the fund 3-6 months post investment. As a result, RevUp funds show actual cash returns much earlier than alternatives, with cash beginning to return to investors in year 2. This feature offers RevUp investors a quick turn on capital and rapid liquidity. The model also allows us to be complimentary, versus competitive, with other forms of capital.
The RevUp model trades “shoot for the moon” opportunities for a more predictable return curve, while still delivering a high IRR and competitive cash-on-cash returns. With 50+ investments made to date, RevUp is one of very few revenue-based funds with longevity, a proven track record, and demonstrated success with actualized returns.
Fund 2023: Stability in Turbulent Times
RevUp’s Athena Growth Fund 2023 will accept $6M in investment and has a projected IRR of 20%+ and a projected cash-on-cash return (DPI) of 1.7x to 2.2x. A 2% management fee is deducted at the outset for fund expenses and portfolio management. Managers receive a 30% profit split after invested capital (including management fees) is returned to investors. The Fund will accept commitments through February 28, 2023, with a $50,000 minimum.
RevUp is well suited to navigate economic turbulence. We are already seeing an uptick in quality deal flow, specifically from companies that are foregoing traditional Venture Capital in the wake of plummeting valuations. Our ability to invest in resilient, revenue-generating companies—versus “go big or go home” moonshots—AND the ability to produce returns with or without exits is a strong formula for continued success, even in turbulent times.
The Benefits of an Annual Fund Model
RevUp has successfully used a rolling annual fund model since 2016. Each annual fund follows the same pattern: once a fund is closed, dollars are deployed in the following 12 months. Beginning in year 2, investors receive dividends twice a year.
One benefit of investing annually is the “layering” of dividends year-over-year. Because each fund begins returning cash to investors one year after closing, investors in multiple funds receive dividends from multiple funds at the same time. For example, an investor who invested in Fund 2018, 2019, and 2020 received dividends from all three funds in 2022.
Layering also means that as one fund reaches maturity and dividends end, investments in later funds are reaching “peak” stage, keeping the flow of dividends stable. 70% of Fund 2022 investors had invested in at least one previous fund. 30+% have invested in all Funds to date.
Fund Management
RevUp Managers are global leaders in the use and development of revenue-based investing for earlier stage companies. After pioneering the model in 2016, the team continues to improve and evolve the RevUp approach to consistently deliver excellent returns to investors, help great founders find success, and build companies that we all are proud to support.
Melissa Withers, Managing Partner
Melissa Withers has overseen 100+investments with deep experience as an advisor to companies across industries and at different stages of growth. Melissa’s stellar reputation as an investor and advisor is second only to the recognition she receives as an advocate for founders who start their entrepreneurial journey without the benefits of socio-economic privilege. You can read a full bio here: https://www.revupfund.com/blog/melissa-withers
Allan Tear, Managing Partner
Allan Tear is a 4x founder of VC funded and boot-strappedcompanies. He co-founded one of the first startup accelerators, ranked in the Top 20 worldwide, and is an investor in 140 companies altogether. Allan’s knowledge as an operator has been key to creating RevUp’s value-add model and helping an outsized percentage of founders navigate their way to successful outcomes.
Bill Cesare, General Partner
Bill Cesare is a serial entrepreneur with over 30years of investment experience. Bill’s proven expertise as a business strategist has enabled him toidentify winning companies, guide them to great success, and consistently deliver between 5-7x returns to his investor syndicates across dozens of companies.
Accredited Investors Only
*The funds described on this website is open to “accredited investors” only, through an offering made in accordance with Regulation D, Rule 506(c) of the Securities Act of 1933, as amended. In purchasing securities through a 506(c) offering, we are obligated to verify any participating investor’s status as an “accredited investor” in accordance with Rule 501 of Regulation D.