What is revenue based financing?
Some startups do not want to give up (future) equity. But they do want to grow and need funds to drive marketing and sales. They can go to a bank or they can choose revenue based financing (or shared earnings financing, which is similar). It's a simple idea: you get funds for marketing and, when successful, you share part of the revenue (or profit) that you generate using those funds.
The number of revenue based financing companies has grown quickly. And they all have their own way of working. You really need to compare them in detail to make sure you choose the right partner. When creating this page, we listed the rates for each company, but they change all the time so now we just link to their website.
Overview of revenue based financing companies
Let us know if you have additions to the list.
» Alternative Capital
» Lighter Capital
» Indie VC
» Pipe.com (upfronts a whole year for MRR customers)
» Braavo (for mobile apps & games)
» Podfund (for podcast creators)
» Bigfoot Capital
» Decathlon Capital
» Earnest Capital
» Flexible Capital
» Feenix Partners
» Flow Capital
» Liquidity Capital
» Novel GP
» Timia Capital
» GSD Capital
» SAAS Capital
» Just capital
Revenue based financing stack
» Who are the major revenue-based financing VCs? (Techcrunch, 2019)
» Revenue based financing (Fred Wilson, 2011 !)
» Supercharging growth with RBF (Tristan Pollock, 2020)
» What is revenue based financing (Wikipedia, 2020)
» Revenue based financing: the numbers (Toptal, 2019)
Continuous securities offering
This type of funding is also non-dilutive. It lets your customers become your investors. So far, we've only seen one company offer this.