Dabachnikov: Revenue-based financing restricts risk-taking and business model experimentation
David Dabachnikov · ScholarshipOwl Breaks $4m Revenue Helping 15k Students Get Loans · Jul 10, 2021 · at 4:31
David Dabachnikov, founder of ScholarshipOwl, reflects on the strategic trade-offs of using revenue-based financing instead of venture capital.
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“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 of experimenting with more risky models that might cause faster growth.”
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