Funding preference changed by investors..??

#equityfuniding#revenuebasedfunding#venturecapital#startups#angelinvestors#raisingfunds#debtfinancing

Revenue based funding or royalty based funding is a method of raising funds method for companies may be during seed funding or at any stage.

Conventional Method was equity based venture capital and angel investing or debt financing method for investors but now trend has changed and these days investors are not looking only for equity they want more than that, they want *times of gross revenue they don’t want seat reserved in board room they want regular revenue for their startups

How does it work?? A company cracks a deal to raise extra $1Bn but investor don’t want to be board of director he wants regular return so company agrees to give 1.5% of your overall revenue and moreover .5% to repay the risk he took by investing at the time of need. Equity Based Financing VS Revenue Based Financing

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