https://thecapitalnetwork.org/events/alternative-funding-option-revenue-based-financing/ Online event
online, Massachusetts 02110
Business, Innovation, Lectures & Conferences, Meetup, Virtual & Streaming
The Capital Network presents: Webinar | Alternative Funding Option: Revenue-Based Financing
Many startups need capital to grow. But for many startups, traditional equity funding from Angel investors and VCs may not be the right path. Through this webinar we’ll explore one of the alternatives: Revenue-Based Financing (RBF) (also known as royalty-based financing).
RBF allows companies to raise capital from investors who then receive a percentage of the companies’ future ongoing revenues in exchange for what they invested. This option is growing in popularity but can take many forms. It’s important for founders to understand the different types of RBF options and which path is the right one for their business.
The investors will discuss topics include:
What is Revenue Based Financing and how does it work?
What are the Pros & Cons of RBF? Does it just provide $?
How do you compare the availability and cost of capital for RBF with angel / venture funding and bank debt?
What types of companies and what stage will benefit from RBF?
What do RBF investors care about?
Who are the RBF investors/groups out there?
How do founders decide which investors to work with? What’s the application process?
Serial Entrepreneur, Angel Investor, Startup Mentor
Jay Batson has been a founder of 4 companies, including 2 venture-backed startups. Jay considers his biggest success as the founding CEO of Acquia. Having spent the last 30 years as either a founder or employee, Jay now helps startups as a board member or mentor, and an angel investor (currently invested in 19 companies). Jay is a member of Walnut Ventures, Mentor in Residence at Techstars Boston, and “Core” Member at Underscore VC.
One of Jay’s passions right now is Revenue-based Financing (RBF). Listen to the Angel Invest Boston podcast episode where Jay shares his perspectives on RBF.
Janice St. Onge
President of Flexible Capital Fund, Steering Committee Member at Vermont Women's Investors Network
Janice St. Onge is President of the Flexible Capital Fund, L3C (“Flex Fund”), a mission-based investment fund providing flexible risk capital to Vermont’s food system, forestry and clean technology businesses. As President of the Flex Fund, Janice manages all facets of the Fund’s operations, including raising capital, deal flow, due diligence, and portfolio / financial management.
She recently helped launch the Vermont Women’s Investors Network, and serves on the Vermont Small Business Development Center Advisory Board. She is a founding member of Slow Money Vermont’s Organizing Committee.
Watch the Revenue Based Financing webinar where Janice shared her insights on RBF.
Angel Investor at Walnut Ventures
Ben Littauer has been an angel investor since 2008 with a diverse portfolio, ranging from a core of software firms (especially mobile and social) to medical devices, biotech, and pharma. Ben has over 25 years’ experience in Internet technologies as an engineer, manager, entrepreneur, analyst, and management consultant. Ben is currently an active member of Walnut Ventures. He is on the advisory board at The Capital Network.
While continuing to advise and mentor companies about and through the fundraising process, in recent years he has been directing his own investment activities to favor Revenue-Based Financing. Check out Ben’s website for the blog posts on RBF and the resources he’s collected on this topic.
Founder and CEO at Eden Specialty Ciders
Eleanor Leger is the co-founder of Eden Specialty Ciders, a boutique Cidery located in the heart of Vermont’s Northeast Kingdom region, producing award-winning ice ciders, aperitif ciders, and naturally sparkling ciders made from locally grown heirloom and cider variety apples.
Eden Specialty Ciders received capital from the Flexible Capital Fund in the form of subordinated debt with royalty financing which provides for flexible payments based on Eden Specialty Ciders’ revenue.
Investment Committee at Portfolia, Angel Investor at Pipeline Angels and Next Wave Ventures, Partner at Converge Venture Partners
Lisa Frusztajer is on the Investment Committee at Portfolia, an Angel Investor at Pipeline Angels and Next Wave Ventures and a Venture Partner at Converge Venture Partners. She started her career with Sun Microsystems, then helped grow a small software startup called KYOS, then joined Avid Technology, the leading provider of audio and video technology for media organizations and independent professionals. Lisa’s background is an eclectic blend of marketing, engineering and project management, as well as of technology, manufacturing, higher education and finance.
Lisa is an investor in Founders First’s Proof of Concept (POC) fund, then followed up with an additional commitment in the core Founders First fund that Kim Folsom launched in 2018. Read Lisa’s article on How Revenue-Based Financing Can Spread the Startup Wealth to learn more about Kim Folsom’s Founders First Capital Partners.