- 1Founders First says 61% of its funded deals went to refinancing MCAs.
- 2The $19M raise is for one of its small business financing funds.
- 3The company says refinancing borrowers cut their effective APR by 15 points on average.
Founders First Capital Partners says 61% of the deals it has funded went toward refinancing merchant cash advances, and the company has just announced a $19 million raise for one of its small business financing funds. Investors include Wells Fargo Foundation, Deutsche Bank Americas Foundation, Sunrise Banks and Community Reinvestment Fund USA, among others. The company's press release has the details.
Focus on MCA refinancing
Founders First provides revenue-based financing, term loans, and hybrid loans that combine the two. It says borrowers who refinance an MCA with the company see their effective APR fall by an average of 15 percentage points.
The release says Wells Fargo put $500,000 into Founders First, which is fiscally sponsored by Realize Impact, to help meet demand for MCA refinancing.
Pricing and contract terms
The company does not publish its APRs. A hybrid loan contract it originated in 2023 states that amounts collected through the revenue-based financing portion should be left out of interest and interest-rate calculations. It also says those amounts should not count when deciding whether the loan exceeds a state's maximum allowable interest rate.
Track record
Founders First's case studies emphasize revenue-based financing. In one, a borrower received $500,000 and grew revenue 90% over 12 months. The company said the structure worked well because payments rose in stronger revenue months.
By its own figures, Founders First has deployed more than $20 million, 70% of its customers have grown revenue, and its financing has contributed to more than 2,700 new full-time hires. Businesses can receive up to $2 million. Its 2025 Impact Report argues the product beats SBA loans because borrowers do not need strong credit or assets, and notes that more than half of the portfolio is refinanced MCAs.
Source reporting: deBanked.
