The Rise of Revenue-Based Financing for Digitally-Enabled Startups
Sunday, 17 March 2024, 23:45
Revenue-Based Financing for Startups
Startups are increasingly opting for revenue-based financing, a unique type of funding that offers an alternative to traditional investment models.
How It Works
- Repayment Structure: Businesses repay a percentage of their gross revenue on a monthly basis, accompanied by a fixed fee ranging from 8-10% of the principal amount.
- Benefits: Provides startups with flexible financing options and aligns the interests of investors with the success of the business.
Revenue-based financing is gaining popularity among digitally-enabled startups as a means of raising capital without the constraints of equity dilution.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.