How It Works - Founders First Capital Partners

Why Choose Revenue-Based Investment?

How it works and who’s it for?

Fuel Your Growth Without Giving Away Your Company

Blending the best parts of Bank Debt and VC Funding, Revenue-Based Investment can help take your business to the next level, without the worry of losing control. We focus on revenue generating service-based businesses seeking up to $1M in capital funding to execute on their growth opportunities.

Revenue Share

A revenue-based investment (RBI) 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 RBI 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 RBI 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. RBI means you can grow without swinging for the fences.

How Our Program Works

Company overview

Give us a basic overview of your service-based business, annual revenues, company size, years in business, etc. using our online application form.

Attend our program

Attend one of two accelerator programs, Bootcamp or FastPath, so we can get to know you better and learn more about you and your company’s goals. Find out more about the non-profit programs at FoundersFirstCDC.org.

Close the deal

Complete our business assessment, send us your financial package and our underwriters will review your investment application for approval.

Is it a good fit for my company?

You’re service-based

You are a service-based business model with recurring monthly revenue.

You’re EBITDA positive

You have gross margin 40% to 50% preferred at least EBITDA positive.

You have contract revenues

You have customer contracts with B2B monthly recurring revenues.

You’re based in U.S.

We fund companies based in and operating inside the United States.

Funding for growth

We seek companies that require funding for growth opportunities.

Funding when needed

We like to make milestone-based investments with follow-on funding.

GET STARTED