Startups Weekly: There’s an alternative to raising VC and it’s called revenue-based financing

In this week's newsletter: Amazon takes a bite of Deliveroo and Away packs on $100M


18 May, 2019TECHCRUNCH.COM

Startups Weekly: There’s an alternative to raising VC and it’s called revenue-based financing | BEAM

Revenue-based financing is on the rise, at least according to Lighter Capital, a firm that doles out entrepreneur-friendly debt capital.

What exactly is RBF you ask? It’s a relatively new form of funding for tech companies that are posting monthly recurring revenue. Here’s how Lighter Capital, which completed 500 RBF deals in 2018, explains it: “It’s an alternative funding model that mixes some aspects of debt and equity. Most RBF is technically structured as a loan. However, RBF investors’ returns are tied directly to the startup’s performance, which is more like equity.”...

This article can only be viewed by registered members. Please log in to view it.

Be Part of this Story


More Stories


AboutContactEnglish