How cohort capital actually works.
Plain-spoken thinking on non-recourse financing, underwriting, and scaling acquisition — written for operators and finance teams.
Non-recourse cohort financing vs. debt vs. MCA
Three instruments get lumped together and they behave nothing alike when a cohort underperforms. Here's the difference that actually matters.
What we underwrite: cohort economics, not credit scores
Traditional lenders read a balance sheet. We read your customers. Here's how a cohort gets from raw data to a funded structure.
Reading marginal CAC: where spend stops being incremental
Blended CAC hides the most important number in your media plan — the cost of the next dollar of spend. Here's how to find the financeable band.
Consolidating factor-rate advances into capped capital
Stacked daily-debit advances quietly throttle growth. Replacing them with a single capped, non-recourse facility frees the cash flow you need to scale.
How renewals compound proven cohorts
The first cohort is the diligence. The renewals are the compounding. Here's how proven channels turn into a renewable line of growth capital.
Want the full thesis?
Read the complete white paper, on-page or as a print-ready PDF.
The wrong instrument
Why customer acquisition is financed worse than any other asset a brand owns — free to read, plus a print-ready PDF.
What a $1M advance really costs
A line-by-line teardown of a revenue-based advance — the fee, the real ~40% APR, the lien, and where a capped, non-recourse structure wins.
Questions, answered
Cohort · customers acquired in a defined period.
Gross profit · revenue after COGS, fulfillment, fees, and returns.
Return cap · the contractual ceiling on what we collect.
Non-recourse · no claim beyond the financed cohort's performance.
GP/CAC · lifetime gross profit per customer ÷ acquisition cost.