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Why MCAs Might Just Beat Venture Capital at Its Own Game

August 15, 2023

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Venture capital has long been heralded as the go-to for high-risk, high-reward investments. However, there’s a new player in town that’s turning heads: Merchant Cash Advances (MCAs). With Supervest leading the charge, MCAs are emerging as a formidable alternative to venture capital. Let’s dig into why.

A Person Reading Documents and Reports Venture Capital
How do MCAs stack up to Venture Capital? Photo by Kindel Media.

1. Stable Returns

Venture Capital: Traditionally, venture capital promises high returns, but it’s a high-stakes game. Data shows that a majority of startups fail, meaning potential losses for you. In fact, The failure rate for new startups is currently around 90%. Yikes. Around 10% of these startups will fail within the first year.

MCAs with Supervest: Supervest’s Mid-Term Note offers an annualized 12% rate, paid out to you quarterly. That’s a return that’s not just competitive but consistently delivered. Statistics from our Q2 performance give us reason to be proud.

Case Study: Joe’s Investment Journey

Joe* invested $100,000 in a startup through venture capital, hoping for a lucrative exit. Meanwhile, his friend, Alex, invested the same amount in MCAs through Supervest. In a year, while Joe was still waiting and hoping for his startup to take off, Alex received a steady $12,000 return on his investment.

2. Liquidity and Flexibility

Venture Capital: Once invested, your money is locked in until the startup either goes public, gets acquired, or unfortunately, fails.

MCAs with Supervest: We have a number of options for you. With our 12-month note, your money is put to work for a defined and short period of time. With our 24-month note, you can redeem your principal or roll it over for another term. This offers you both security and flexibility.

Case Study: Emily’s Dilemma

Emily, a venture capitalist, wanted to buy a house. However, her funds were locked in a startup for an indefinite period. On the other hand, her colleague, Mark, who invested in our mid-term MCAs, could easily plan his purchase, knowing he could access his funds in two years.

3. Volume of Investments

Venture Capital: A hit-or-miss game. Even seasoned investors can’t predict which startups will succeed. A 90% failure rate is a pretty intimidating statistic to stare down.

MCAs with Supervest: Since October 2021, Supervest has been trusted with $4,000,000 in investments. The sheer volume speaks to investor confidence and the platform’s robustness.

4. Reduced Risk

Venture Capital: High potential for loss given the volatile nature of startups.

MCAs with Supervest: You can diversify your portfolio with a mixture of short and mid-term promissory notes and reduce dependence on one investment avenue. MCAs are considered a powerful diversification tool because you can spread your allocation throughout multiple layers of variety – geographical location, industry, and business type. Moreover, the returns, as highlighted by our track record, are considered more predictable.

Case Study: Liam’s Lesson

Liam, an ardent venture capitalist, faced significant losses when three of his five startup investments failed. In contrast, Sarah, who spread her investments across hundreds of MCA deals with Supervest, enjoyed more consistent returns, regardless of market volatility.

Black and Silver Laptop Computer Beside Black Headphones Venture Capital
Startup failure rates are brutal, 90% don’t make it. Photo by Ivan Samkov.

5. Accessible Entry Point

Venture Capital: Typically requires significant capital upfront, sometimes in the millions.

MCAs with Supervest: Start with as little as $25,000. It’s a game-changer for those looking for high-yield, mid-term investments without breaking the bank.


While venture capital will always have its place in the investment world, MCAs are making a compelling case for themselves. Offering stable returns, flexibility, and reduced risk, it might just be time to reconsider where you’re placing your bets.

Ready to explore the MCA advantage? Dive deep into the Supervest platform and experience the next big thing in investments.

Start Your Investment Journey with Supervest.

*The examples are hypothetical case studies and should not be construed as financial advice.

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