Klotho is introducing a new kind of startup funding – built for alignment, not dilution.
Fast, founder-friendly, and frictionless, it lets you access capital without giving up control,
negotiating valuation, or slowing down to raise equity.
We call it the Revenue-Linked Agreement (RLA).
What is an RLA?
RLAs are founder-friendly, non-dilutive financing agreements
tied to a share of monthly or quarterly revenue,
capped at fixed return. No equity, no valuation negotiations
just capital aligned to your business growth.
Key Features:
Loan size: 500K – 5M
Term: Up to 24 months
Revenue share: 10%
Repayment cap: 1.5x
Grace period: Optional 1 – 2 months
No equity, no board seats, no dilution
Eligibility:
ARR > 3M
50%+ YoY growth, low churn
Gross margin > 60%
B2B contracts with clear payment terms
Post-series A or pre-series B startups
Why RLA?
- Keep control of your business
- Pay as you earn
- Fast, transparent, and flexible structure
Contact us if this model resonates with your needs.
FAQ
What is an RLA?
A Revenue-Linked Agreement (RLA) is a non-dilutive funding instrument where a startup receives upfront capital in exchange for a fixed percentage of future revenues, typically until a cap is reached.
How is an RLA different from equity or venture debt?
Unlike equity, RLAs do not dilute ownership. Unlike venture debt, RLAs do not require fixed monthly repayments or personal guarantees.
What percentage of revenue will I need to share?
Typically, RLAs involve 5–10% of top-line revenue until a predefined repayment cap is reached, such as 1.5–2.5x the original capital.
How is the repayment amount structured?
You agree to repay a fixed multiple of the original investment (e.g., €2M invested → repay €4M over time), in quarterly installements.
Is there a time limit for repayment?
Yes, there is usually a long-stop maturity (e.g., 2–5 years). If the revenue share hasn’t reached the cap by then, a balloon payment may apply. This means that the remaining balance up to the agreed cap must be paid as a lump sum at the end of the term.
Can I repay early?
Yes. Early repayment is allowed.
How does this affect my cap table?
It doesn’t. RLAs are non-dilutive and do not appear as equity or convertibles.
Will this affect my ability to raise equity later?
Generally no, but it’s important to disclose the RLA structure to future investors. Many VCs prefer this over traditional venture debt because of its flexibility and alignment with growth.
What happens if my revenue drops or I face a crisis?
If your revenue drops below the level required to make the agreed quarterly payment, we may grant a short grace period (typically 1–2 months). If payment is still not made after this period, a default clause will apply. While repayments are revenue-linked and flexible, persistent underpayment beyond the grace window may result in formal default, similar to traditional debt instruments.
What kind of startups are eligible?
Founders with:
Predictable or growing revenue (typically €3M+ ARR)
Typically post-round A
High-margin models >60%
Venture scaling of >50 YoY
What can I use the funds for?
Growth, hiring, product development, or customer acquisition — any use that contributes to scaling revenue.
Can I use RLAs between equity rounds?
Yes. RLAs can serve as bridge capital or help extend runway without valuation pressure.
Is this a loan? Will it show on my balance sheet as debt?
Though technically not a loan, the agreement is a form of debt-based financing where repayments are tied to a percentage of the company’s revenue and it may qualify as off-balance sheet depending on jurisdiction and IFRS/localrules.
What security or collateral do you require?
A security assignment or pledge over revenue streams
Subordination of other claims on the same revenue
In some cases, a security interest over key Intellectual Property (IP)
Certain negative covenants to safeguard repayment capacity
A pledge over accounts receivable
Optionally, escrow arrangements or insured receivables structures in specific cases
Will you require board seats or veto rights?
No. RLAs are passive capital. We monitor performance but do not take governance rights.
What access and control rights you will have over startup revenue accounts?
As part of the RLA, the startup shall grant us (as the creditor and revenue rights purchaser) secure, read-only API access to your company’s designated business bank accounts and/or payment processing platforms (e.g. Stripe, PayPal, Revolut Business)
