2025: A Year of Growth and Impact

What a year it's been! As we close out 2025, we're excited to share some key milestones that reflect our mission to provide flexible, founder-friendly capital while generating strong returns for our investors.

Fully Deployed and Moving Forward

We successfully deployed the last of our $9.7 million Fund II this year and have already begun investing from Fund III. With an average deal size of $330,000, we've been able to provide meaningful capital to growing companies at a critical stage of their journey.

The results speak for themselves: we achieved 48% DPI in under four years, returning nearly half of our investors' paid-in capital. Four of our portfolio companies had successful exits, each one returning all invested capital along with positive returns to our limited partners.

We've already begun investing Fund III and looking to support more US businesses in 2026. If you'd like to learn more about this asset class and our returns, check out our blog about it here.

Partnership Beyond the Check

We believe in standing by our founders through multiple stages of growth. That's why 57% of our investments in 2025 were follow-on rounds. When we back a company, we're committed to supporting them as they scale, not just making a one-time investment and moving on.

Backing Underrepresented Founders

We are proud to share that 62% of our funding went to underrepresented founders. While not a specific area of focus for us, we have continued to see incredible opportunities in backing talented entrepreneurs who see a different path to success than traditional venture investors can offer.

Industry Agnostic, Nationwide Reach

Unlike most revenue-based financing firms that focus exclusively on SaaS, we invested across 11 unique industries in 2025. We believe great businesses come in all forms, and our flexible approach allowed us to back companies with diverse business models across 14 different states.

11 industries we invested in:

• B2B Appliances

• B2B Construction

• B2B Appliances

• Consumer Product Goods

• Medical Devices

• Medical Device Manufacturer

• Medical Laboratories

• Medical Waste Logistics

• News

• Restaurant

• Professional Services

• SaaS

14 states we invested in:

Looking Ahead to 2026

As we head into the new year, we're energized by the progress our portfolio companies are making and grateful for the trust our limited partners have placed in us. We're excited to continue our work with Fund III, supporting more founders who are building exceptional companies.

Thank you to our portfolio companies, investors, and team for making 2025 such an incredible year. Here's to even more growth and impact in 2026!

About Sage Growth Capital

Sage Growth Capital makes revenue-financed investments in companies at any stage who need growth capital. It is our mission to provide a more flexible funding option to growing companies who do not fit traditional equity or lending models. To learn more about Sage Growth Capital or to apply for funding visit: www.sagegrowthcapital.com.

About Revenue-Financed Capital

Revenue-financed capital (RFC), also referred to as royalty financing, revenue share or revenue-based financing (RBF), is a non-dilutive form of growth capital where investors receive a percentage of monthly revenues until a set amount has been paid. RFC differs from equity financing as the investor does not obtain ownership of the company and it differs from debt financing as there is no collateral required and payments are variable. RFC is designed to empower entrepreneurs to grow their businesses with non-dilutive capital that aligns with their sales cycles.