How It Works - Founders First Capital Partners

What is Revenue-Based Financing?

What is it and how it works

Revenue Share

A revenue-based finance (RBF) investment provides capital to a business by “selling” an ongoing percentage of a company’s future revenue to the investor. For simplicity, you can think of it as a revenue share type arrangement. The Investor gives capital to the company in exchange for a small percentage of gross revenues.

Flexible Pay Back

An RBF lives as a hybrid of bank debt and venture capital. Instead of a typical bank loan, which requires a business to pay a fixed interest payment, a revenue-based loan receives a percentage of revenues over a specific amount of time, allowing “interest” payments to fluctuate when a growing company has inconsistent cash-flows, lumpy, or seasonal revenues.

Retain Ownership

For owners, revenue-based loans are attractive because they don’t risk dilution and loss of control. The structure of an RBF is often without having to agree to a valuation, which leaves management in control of the company and usually does not have restrictive covenants or require a board seat. RBF means you can grow without swinging for the fences.

How Our Program Works

We become a strategic growth partner

Attend our 12-Week Bootcamp

90-day, 12-week program, weekly online group sessions. Culminates with onsite Pitch and Graduation Event in beautiful La Jolla, CA. Learn what it takes to develop an effective growth and funding plan that gets funders to say yes to your request to fund your business growth.

LEARN MORE ABOUT OUR 12-WEEK BOOTCAMP

Apply for funding

After you’ve participated in our 10 week growth bootcamp, FFCP will review your funding application and conduct due diligence.

Get Funding

FFCP-approved companies receive revenue-based loans of up to $250k and a customized 5-year growth plan for your business

Growth support

FFCP expansion support works with you to implement a 5-year growth plan, creating a significant and measurable increase in revenues and profits

Graduate

Repay your loan with growth revenue generated over a 5-year term, capped at 2X times the amount financed

APPLY TO OUR BOOTCAMP

Is my company a right fit?

If you have a USA based business with at least $250,000 of annual revenues, and qualify in one of the below categories, you may be a good fit for our program.

Special considerations for:

Woman-owned business,
Ethnic minorities,
Military Veterans,
Membership in participating business organization,
Located in a low to moderate income (LMI) area
Inclusive owner or exec teams

LEARN MORE

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