Startup Finance FAQ / Fundraising

How does revenue-based financing work?

Fast Answer:

With revenue-based financing, you agree on a total return over a period of time, and pay your lender back from your monthly revenue stream. Revenue-based financing is non-dilutive, so your startup doesn’t exchange any equity for the funds like you would in a traditional equity-based VC deal. Revenue-based financing can offer a way to accelerate growth or extend runway for startups that have already proven market fit and have some level of predictable recurring revenue.