The RBF market matures and expands – welcome Next Step!

During the annual “tech industry spring break” at SXSW, I reached out to the folks at Next Step Capital Partners, an Austin-based RBF investor who just broke out onto the scene.

Patrick and Dan from Next Step are experienced operators and angel investors in high tech. Much like our own story at RevenueLoan‘s founding, they discovered the RBF model as part of their investing work and conversations, and found several situations where the revenue-based model would have worked better than traditional equity.

With legal advisory help from Ed Cavazos and Andrew Gajkowski of Bracewell & Giuliani, who are rapidly making a mark as thought leaders in the RBF practice in Texas, they founded the firm and have been actively looking at investments in the $250-500k range, primarily in Texas.

Welcome to the Next Step team — interested folks should check them out, and we hope for their success as we all continue to prove out and define the emerging RBF marketplace!


When Tweens Need Cash

What kind of business is revenue-based funding (RBF) good for?  That’s one of the most frequent questions startups and investors ask as they explore RBF.  While there’s no limit to how big or small a company has to be, a lot of deals have been circling startups with between $2 million – $15 million in annual revenue.  It’s becoming a sweet spot.  The question is… why? Read more of this post

The Devils of Cash Flow

I don’t know who first said “cash flow is king.”  They should have said cash flow is a devil.  Startups are constantly damned by their cash flow.

Read more of this post