Steel Capital Management

What Steel Capital Management does

Steel Capital Management, LLC is a New York-based private investment firm founded in 2020 by Marc Sehgal and Michael Hoffman that provides non-dilutive debt financing to emerging U.S. direct-to-consumer and omni-channel consumer brands. The firm operates two core products: a Working Capital product structured as short-term merchant cash advances (targeting DTC brands with at least 12 months of revenue and $1.5M+ annualized revenue), and a Growth Capital product structured as fully amortizing term loans with fixed monthly payments (targeting brands with at least 24 months of revenue, $3M+ annualized revenue, and projected profitability). Both products are repaid without equity dilution and are typically closed within 1–3 weeks from term sheet.

The firm's distinguishing structural feature is its dual lending-and-payment-processing model: when Steel extends a loan, it also replaces the borrower's incumbent payment processor, capturing margin from processing fees to reduce its effective cost of capital. Leadership's background at Bridgewater Associates (where co-founder Sehgal headed Fixed Income EM and Credit Trading) and across multiple hedge fund legal/compliance functions informs proprietary algorithmic trading platforms that support the firm's capital markets operations. As of the data window, Steel serves 50+ portfolio companies across fashion, beauty, food and beverage, home goods, personal care, pet, and wellness verticals, sourced primarily through direct outreach, founder networks from prior roles at Feenix Venture Partners, and portfolio referrals. The company is capitalized in part through a $12 million credit facility from TAB Bank secured in January 2025.

Name

Steel Capital Management

Legal name

Steel Capital Management, LLC

Website

https://steelcapmgmt.com

Company type

Private

Founded year

2020

Operating status

Operating

Headcount range

1–10 employees

Short description

Steel Capital Management is a New York-based private lender founded in 2020 that provides non-dilutive working capital and growth capital term loans to emerging U.S. direct-to-consumer brands, combining debt financing with payment processing to lower its cost of capital.

Ownership category

akta.pro rank

Product category

Specialty Lending

NAICS

Credit Intermediation and Related Activities (522)

SIC

Short-Term Business Credit Institutions (6153)

akta.pro primary industry

SME Term Loans & Growth Capital (FSAKAGAB)

akta.pro secondary industry

SME Trade Finance & Working Capital (LCs, Guarantees, Receivables) (FSABABAF)

Keywords

• Direct-to-consumer financing
• Non-dilutive debt capital
• Working capital advances
• Growth capital term loans
• Merchant cash advances

Headquarters

HQ city

New York

HQ country

United States

HQ region

North America

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Technology or R&D, Operations, Supply Chain, Marketing or Sales, Infrastructure

Revenue model

1. Working Capital Advances: Short-term working capital provided in the form of merchant cash advances, repaid through a percentage of sales. Companies receive proceeds upfront and can use capital as needed.
2. Growth Capital Term Loans: Longer-term fully amortizing term loans with fixed monthly payments. Proceeds provided upfront with flexible use of funds for growth initiatives including marketing, strategic hires, acquisitions, or inventory.
3. Payment Processing Fees: When lending to companies, Steel replaces the company's payment processor and captures margin embedded in processing fees. This creates a lower cost financing structure for portfolio companies.

Pricing tiers

Go-to-market motion2 records

Distribution channels2 records

Marketing channels4 records

Core offering

Steel Capital Management provides non-dilutive debt financing to emerging U.S. direct-to-consumer and omni-channel consumer brands through two products: Working Capital (short-term advances repaid as a percentage of sales) and Growth Capital (longer-term fully amortizing term loans). The firm pairs its lending with payment processing services, replacing the portfolio company's incumbent processor and capturing margin from existing processing fees to lower the client's cost of capital.

Product overview

Steel Capital Management offers two distinct non-dilutive financing products for emerging Direct-to-Consumer brands. Working Capital provides short-term funding for near-term business needs like inventory and marketing, while Growth Capital combines longer-term term loans with integrated payment processing services. Both products are designed to help DTC brands scale without sacrificing equity ownership.

Differentiator

Problem solved

Functional benefit

Products and services

• Working Capital Short-term, non-dilutive financing for U.S. DTC and omni-channel brands with at least 12 months of revenue and current annualized revenue of at least $1,500,000. Funds are disbursed upfront with no restrictions on use, repaid as a percentage of sales, and typically close within 1–2 weeks of a proposal.
• Growth Capital Longer-term, fully amortizing term loan for U.S. DTC and omni-channel brands with at least 24 months of revenue, current annualized revenue of at least $3,000,000, a material share of revenue from credit card payments, and projected profitability. Proceeds are provided upfront for uses such as marketing, strategic hires, acquisitions, or inventory, with fixed monthly payments; Steel typically closes from term sheet to funding within three weeks.

Quantifiable outcome

• Working capital closes within 1-2 weeks after proposal
• +1 more outcomes

Named customers26 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature2 records

Scale indicators3 records

Recent moves4 records

Expansion highlights4 records

Direct peers

• Pipe: Pipe provides revenue-based financing and capital solutions to subscription and DTC-style businesses, sharing Steel's non-dilutive, recurring-revenue-tied lending model and target customer profile of growth-stage consumer companies.
• Clearco: Clearco offers revenue-share and term financing specifically to DTC and e-commerce brands, overlapping directly with Steel's working-capital and growth-capital products for omni-channel consumer companies.
• Wayflyer: Wayflyer provides revenue-based working capital and growth funding to DTC and e-commerce brands, closely mirroring Steel's customer segment, loan structures, and value proposition around non-dilutive financing for emerging consumer companies.
• OnDeck: OnDeck is an online small-business lender offering term loans and lines of credit to SMBs — comparable to Steel's product set but serving a broader, non-DTC-specialized customer base.
• BlueVine: BlueVine provides working capital, term loans, and lines of credit to small and mid-sized businesses, overlapping with Steel's growth-capital offering and direct-to-borrower digital underwriting model.
• Kapitus: Kapitus delivers alternative small-business financing including working capital and term loans to growth-stage companies — comparable to Steel's customer profile of emerging, revenue-generating consumer brands.
• Fora Financial: Fora Financial provides working-capital advances and term loans to small and mid-sized U.S. businesses, directly comparable to Steel's merchant cash advance and growth capital products.
• Credibly: Credibly offers working capital loans, lines of credit, and term loans to U.S. small businesses, comparable to Steel's alternative-finance products targeting revenue-generating SMBs.

Broad incumbents

• Stripe Capital: Stripe Capital extends financing to merchants on the Stripe payment platform, sharing Steel's lending-plus-payment-processing integration model but at vastly larger scale and broader merchant base.
• Shopify Capital: Shopify Capital provides merchant cash advances to Shopify-based DTC and e-commerce brands, overlapping with Steel's working-capital product for similar customer types but embedded within a much larger commerce platform.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks5 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/steel-capital-management

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Steel Capital Management