Revenue Based Financing
topic on 4 shows · 11 statements across 10 episodes
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Startups For the Rest of Us 
the Official SaaStr Podcast 
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11 statements about Revenue Based Financing, every show
Walling: TinySeed explored and rejected launching an RBF debt fund
“Einar and I at one point, this is six, seven years ago, talked about should we raise a debt fund, right, and have Tiny Seed Capital. I don't know what we call it, but whatever, you know, you get the idea. Tiny Seed RBF. And when we looked at the amount that we…”
Mohnot: Invest equity for 20x upside, otherwise use revenue-based financing
“Are you gonna make twenty-x your money? Then make an investment, equity investment. If not, revenue-based financing.”
Yin: Revenue-based financing requires debt repayment ability, not billion-dollar outcomes
“Revenue-based financing, like, I don't have to believe this will be a billion-dollar-plus outcome. I just have to believe, can she pay me back with interest? And I would take that bet any day. She seems like she's operating her business well.”
Janz: Venture debt should be a last resort due to default risk
“Venture debt or revenue based financing, but it should probably be the last resort because it'll add a lot of risk to your company. So if you do that and things Don't work out, then basically the bank owns your company by the time you have to pay back.”
Walling: Revenue-based financing typically demands $15k-$20k MRR and 6% top line
“In order to get revenues financing with anyone, you need to be about 15 or twenty-k MRR, and you take out a loan, and then you're on the hook for that. Sometimes there's a personal guarantee which is, you know, very different than this, and sometimes there's n…”
Dabachnikov: Revenue-based financing restricts risk-taking and business model experimentation
“When you take revenue-based financing, you basically start from the beginning to think how you're going to repay that. So basically you're locked into using most of the revenue-based financing in order to generate growth on your existing model instead of kind …”
Walling: Startup financing is no longer binary between bootstrapping and VC
“There's all, it's not binary anymore. Bootstrap versus venture. It's I can bootstrap. I can do one round. I can take money from tiny seed. I can take money from Indie.bc. I can do revenue based financing if I get to the point where that makes sense, or I can t…”
Mohan: SupportBee will avoid venture capital but consider revenue-based financing
“Not at the moment because I think I'm pretty I think unlike 10 years back now, I know what story sort of you need to sell. So not at the moment. But let's, I'm curious to see how things pan out in the next 12 months, and based on that, if we need to, then yes.…”
Balogh: Revenue-based financing is much cheaper than equity for SaaS
“I would argue a lot cheaper than equity, and it's still kind of ratchets with you as you grow.”
Boebel: Revenue-based financing adds two months to customer payback period
“Most likely the percentage of revenue route, the from what I've seen, you can get better terms that way. And it's actually easier to model and it's easier to plug into the touch zero operating model than I have. Which I already have. And basically the way it w…”