Revenue Based Financing
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:
If You Think Your Weird Startup Deserves $500,000 – Read This Now! Continue reading
When should the payments on a Revenue Royalty Certificate begin?
Since I get at least one email a week about this I will explain how the decision is made.
What types of companies is Revenue-based Finance best suited for?
Since most people are only now beginning to discover revenue-based financing they mistakenly assume that it’s an exotic new financing mechanism suitable for a only a small subset of companies. The fact is that it’s a form of financing better suited to the majority of businesses than traditional equity financing. Consider the fact that equity-based financing depends on a profitable liquidity event taking place, such as an IPO or acquisition by a deep-pocketed buyer, to make it worthwhile for the investors. Then consider how unlikely either of those events really is for the vast majority of companies. The answer is highly unlikely. Continue reading