About Revenue-Based Financing
Revenue Based Financing is a type of funding model adopted by venture capital firms and small financing firms. Under this model the companies are given a capital by the RBF provider in exchange of the specified portion or percentage of their gross revenue. RBF is also known as royalty based financing and is considered as an alternate to more traditional equity based financing and debt based financing. This model is particularly gaining lot of popularity in famous start-up destinations such as United States and India. SMEs and Start-ups belonging to IT and Telecom field are expected to benefit most out of it. Geographically, North America is expected to be biggest market followed by Asia Pacific.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
The competitive landscape in the Revenue-Based Financing market feel free to ask any further questions you might have about specific players, trends, or challenges within this dynamic and exciting space. Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
Decathlon Capital Partners (United States), Ken Capital Technologies Pte Ltd. (Singapore), Capria Ventures LLC (United States), Lighter Capital (United States), Sabine Capital Partners, LLC (United States), GetVantage (India), Uncapped Ltd. (United Kingdom), Fleximize (United Kingdom), SaaS Capital, Inc. (United States) and UPLIFT1 (Germany) are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research coverage are Kapitus Source, Inc. (United States), GSD Capital, LLC (United States), Flow Capital (Canada) and RevTek Capital (United States).
Segmentation Overview
AMA Research has segmented the market of Global Revenue-Based Financing market by and Region.
On the basis of geography, the market of Revenue-Based Financing has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by End Use, the sub-segment i.e. IT and Telecom will boost the Revenue-Based Financing market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Organisation Size , the sub-segment i.e. SMEs will boost the Revenue-Based Financing market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
IT and Telecom Account for Largest Beneficiaries
Market Growth Drivers:
Rising Number of Start-ups around the World, Increasing Demand for Alternate to Equity Based Financing and Rising Number of Venture Capital Funds
Challenges:
Lack of Availability of RVF due to Less Financing Bodies in the Field
Restraints:
Less Awareness about the Revenue Based Financing
Opportunities:
Small Financing Companies can capitalise on this Model Targeting Rural Firms
Market Leaders and their expansionary development strategies
In August 2023, Salesforce Ventures partners with Founder Collective, an RBF investor, to launch a joint initiative supporting female founders through RBF solutions.
In October 2023, The Global RBF Alliance, an industry association, launches a global registry for RBF investors and platforms, enhancing transparency and investor confidence.
Key Target Audience
Revenue Based Financing Providers, New Entrants/Investors, Venture Capitalists and Private Equity Firms, Analysts and Strategic Business Planners, Government Regulatory and Research Organizations and End-Use Industries
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.