Show Me the Startup Money

Podcast Overview

The primary funding vehicles to grow a startup are to take on debt or sell part of the company’s stock, referred to as equity, to angel investors and venture capital funds. But we are seeing a variation in the traditional debt versus equity trade-off, and it has the potential to benefit both entrepreneurs and investors. 

This structure, referred to as revenue-based financing, represents a third rail for entrepreneurs to obtain working capital and for investors to reduce the risk of loss in their investment.

Our conversation in this podcast is about revenue-based financing for startup companies. My guests are Molly Otter, Investment Partner at Sage Growth Capital based in Boise, Idaho, and Jonathan Benjamin, CEO of Unity Labs who is a participant in the Revenue-based financing fund.

In this podcast, we will discuss the following factors:

• How does revenue-based financing work?
• How is the investment structured?
• What are the qualifications to obtain financing?
• The perspective of a participating entrepreneur
• How does the sidecar fund participate in revenue-based financing
• How does the entrepreneur avoid dilution?
• Discussion about how referrals come from venture and angel funds
• The fund’s focus on profitable growth

My guests are Molly Otter, Investment Partner at Sage Growth Capital based in Boise, Idaho, and Jonathan Benjamin, CEO of Unity Labs who is a participant in the Revenue-based financing fund.