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Should your new VC fund use Revenue-Based Investing?

David Teten

Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. BJ Lackland observes, “Our customers are 10% VC-backed, 45% bootstrapped and 45% angel-backed.”. Kim Folson, Co-Founder, Founders First Capital, observed, “RBI financing is more intimate than traditional equity.

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