writes copy 22 Aug 2019

Should you raise equity venture capital or revenuebased investing VC

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Most founders who are raising capital look first to traditional equity VCs. But should they? Or should they look to one of the new wave of revenue-based investors?

Revenue-based investing ('œRBI') is a new form of VC financing, distinct from the preferred equity structure most VCs use. RBI normally requires founders to pay back their investors with a fixed percentage of revenue until they have finished providing the investor with a fixed return on capital, which they agree upon in advance.

This guest post was written by  David Teten, Venture Partner, HOF Capital. You can follow him at  teten.com  and  @dteten. This is the 5th part of our series on Revenue-based investing VC that touches on:

From the founders' point of view, the advantages of the RBI model are:

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