The Internet is Discovering Revenue-based Financing
Today’s Business Insider has a brief article on revenue-based funding. Unfortunately the title is very misleading:
Also, the VC model really only works for the “home-runs” so this approach makes sense for great businesses that make money but aren’t swinging for the fences. “We think businesses that make $1-5m/ year in revenue are great businesses and our long term vision is to make it super fast and simple for those businesses to get capital.” They believe a company that’s doing $1 or $2 or $3 M in revenue, with potential to go to $10 M or $20M, is still an awesome opportunity and deserves access to capital.