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Revenue-Based Investing: A New Option for Founders who Care About Control

David Teten

Factoring, MCAs and receivables financing are all short-term oriented with pay-back periods measured in weeks, months or quarters, while RBI is generally measured in years. I asked Brian Parks, Managing Partner, Bigfoot Capital, about the impact of RBI on traditional VC.

Revenue 60
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The Importance of Bridge Funding for StartUps

The Startup Magazine

For example, if your company is already providing regular services to customers and clients, interruptions to these services can cause you to lose market share, making it much more difficult for you to honour commitments to your main funding partners.

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The Basics of Small Business Loans [WEBINAR]

Up and Running

For those businesses that are already up and running, after that startup phase, you may have a working capital need, a permanent need that your customers pay you, let’s say in 90 days, any invoice come for 90 days for a product you sell but your suppliers need to get paid in 30 days and you have a 60 day gap.

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The Option Pool Shuffle

venturehacks.com

Given that many companies are doing convertible note bridge financings as their seed round, this seems to come up relatively often. Remember, more fully-diluted shares outstanding drives the Series A price per share down, resulting in more dilution to the founders.