Revenue-based finance, a non-dilutive way of financing for scale-up companies
Revenue-based finance (RBF) is a simple type of funding in which a company that already generates revenues receives capital investment in exchange for a share in its future revenue until a pre-defined absolute amount – the cap – is repaid. As the funding capacity is linked to the revenues that are generated by the company, the investment can easily be increased step-by-step as the borrower´s revenues grow over time.
RBF is growing as an alternative to traditional methods of financing companies. Especially well-suited to innovative and fast-growing business, RBF can help entrepreneurs scale their companies without diluting ownership and without providing personal collateral, which are typical drawbacks of venture capital investment and traditional bank financing.
Isabella Hermann-Schön, managing partner at Round2 Capital, and Stefan Nagel, partner at Round2 Capital, will talk about how RBF generates value for founders, give insights of the benefits in comparison to other classical financing options and why Round2 has chosen a different approach in the ecosystem.
17. September 2020, Donnerstag
12:30 - 13:30