What does venture capital actually cost you?

Equity financing looks free until you do the math. Here’s how structured capital compares — in real dollars, at exit.

Option A

Yorktown Advance

Option B

VC / Angel Round

True cost

Fixed fee, known upfront

Based on payoff timing. No surprises.

True cost

Future equity value at exit

The faster you grow, the more it costs.

Dilution

You own 100% at exit.

Dilution

10 – 30%

Permanent. Compounds with each round.

Time to funded

2 – 4 weeks

Streamlined, predictable process.

Time to funded

6 – 12 months

Pitching, diligence, term negotiations.

Board involvement

None

Your company, your decisions.

Board involvement

Often required

Oversight rights, approval requirements.

Repayment

Revenue-linked payments

Structured to your cash flow.

Repayment

Triggered at exit event

Liquidity event or secondary sale.

Qualification

Revenue + growth trajectory

No hard collateral required.

Qualification

Team + vision + market size

Highly selective, long evaluation cycle.

Illustrative example — adjust for your valuation and growth rate

Yorktown — what you pay

90-day payoff

Most common scenario

9% of advance

120-day payoff

Standard window

12% of advance

Full 6-month term

Worst case — most pay less

18% of advance

VC — the dilution math

Example: $3M valuation, 10% equity, 4-year hold

Company value today$3M

Revenue growth (10%/yr)$4.4M by yr 4

Exit at 4x multiple$17.6M

VC’s 10% stake at exit$1.76M

Equity given away$1.76M+

At a $10M valuation the same 10% stake becomes $7M+ at exit. The faster you grow, the more dilution costs.

How repayment works

Bi-weekly payments

Typically 4–5% of the advance amount, structured around your revenue profile.

Revenue-linked

Payments align to your cash flow so they support your business, not strain it.

No prepayment penalty

Pay it off early and you stop paying. Most founders clear it well before 6 months.

Better terms on renewal

First deal is your most expensive. Perform well and your rate drops.

No personal credit score check

Qualified on revenue trajectory and growth potential, not personal credit history.

No hard collateral required

Your business performance is the underwriting lens, not your personal assets.

Business commitment structure

Like any responsible lender or institutional investor, Yorktown requires standard business commitments from principals to protect all parties. This is the same framework used by banks on business loans and by VCs through corporate resolution agreements.

All principals with 20%+ ownership commit to remaining active in the business and operating it in good faith during the advance term.

The business agrees to stay within standard debt covenants, consistent with the terms of any responsible commercial loan.

No large unauthorized purchases outside normal business operations during the term.

These are company-level operating commitments, not a personal lien or personal guarantee on individual assets.

This is called a Performance Commitment. It reflects the same alignment VCs require through corporate resolution agreements with all stakeholders — the difference is Yorktown takes no equity and no board seat in return.

Application to funded: 2–4 weeks

We schedule the next step before the current call ends.

Application

›

File review

›

Director call

›

Term sheet

›

Funded

All principals with 20%+ ownership required on the term sheet call. Pricing subject to underwriting review.

This document is for discussion purposes only and does not constitute a binding offer or guarantee of funding. All terms subject to underwriting. Not investment advice.
Pricing shown at maximum rate of 3%/month. Actual rate determined after application review. V4 | April 2026 | yorktownfund.com

This website is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Any such offer or solicitation will be made only by means of a confidential private placement memorandum and other applicable documentation. Past performance is not indicative of future results. Investment involves risk, including the possible loss of principal.