Revenue-Based Financing (RBF)
Funding repaid as a percentage of monthly revenue rather than via equity or fixed instalments.
In RBF, a financier advances capital and is repaid from a share of revenue until a cap is reached. It is non-dilutive and flexes with performance, making it popular for SaaS and e-commerce with steady revenue. It suits growth funding rather than the earliest pre-revenue stage.
Examples
An e-commerce brand uses RBF to fund inventory. — A SaaS firm finances marketing with RBF.
How it relates to The Startup Foundry
Non-dilutive options complement equity. The Foundry helps founders understand when each type of capital fits.