Revenue-Based Finance: What Would Google Do?

When it comes to revenue-based funding (RBF) one of the most common questions from startups is “how does it compare to selling stock?”  At the end of the day, is it smarter to sell some shares to an angel investor or venture capitalist, or to take an RBF obligation instead?  The problem is, a lot depends on the intricate details of any one situation.  So rather than getting bogged down in all possible variations, perhaps we can shed some light by asking a different question: What about Google?  Would RBF have been a good or bad idea for Google as an alternative to selling stock? Read more of this post

Microfinance Crisis – RBF to the Rescue?

While revenue-based financing (RBF) wasn’t necessarily created with a social good in mind, few would deny the positive economic development that can happen when entrepreneurs have access to capital.  For example, venture capital-backed firms created an estimated 12.1 million jobs and $2.9 trillion in revenue between 1970 – 2008.[i] Yet access to capital remains a critical challenge, even for some of the most promising businesses worldwide. Read more of this post