GetVantage, an alternative funding platform for digital-first businesses, works on a revenue-based funding model and takes a cut of a startup’s revenue, in lieu of equity. Its portfolio includes Power Gummies, Flo, Dr Sheths, and Slay Coffee, among others.
Raising funds is a big challenge startup founders have to grapple with in the course of building and growing their businesses, especially when it comes to discussions around equity cuts. Instances of founders losing control over their own company as they grow — and the company ostensibly straying away from its mission as stakeholders exert control — are a dime a dozen.
Not wanting to part with a lot of control in their own companies leads to founders missing out on valuable funds and time they could have used to scale.
Enter revenue-based financing — a concept that is slowly taking the startup world by storm. Revenue-based financing is where the funding company takes a small cut of a venture’s future revenue stream as a flat fee, in exchange for growth funds. There’s no equity dilution involved, nor is there any debt of any kind — win-win for the startup looking for quick funds without the long, arduous pitching process.